SAIL's $17 Billion Project Investment to Turn Jharkhand into Industrial Hub

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Over the next decade, Steel Authority of India Limited (SAIL) will invest more than $17 billion to expand and modernize various projects across the state of Jharkhand in eastern India.

The company will expand its Bokaro steel plant; set up new steel, power and urea plants in Sindri with an investment of $6 billion; and increase mining activities across Jharkhand. The expansion program is expected to generate a wide range of employment opportunities and turn the state into an industrial hub.

"The company is receiving full cooperation from local and central governments for its projects," said Chairman C.S. Verma.

Jharkhand is a key state for SAIL in its drive to up production capacity, as it has four coal blocks, a number of iron ore mines, and the Bokaro steel plant. SAIL is currently waiting for the federal government to respond to its request for more coal blocks. Three of the four coal blocks in the state are operational, and the fourth is due to begin operations shortly.

The Bokaro steel plant's capacity will be increased to 17.5 million tons a year and will require an investment of more than $10 billion. A new 5.6 million-ton steel plant at Sindri will require $4.5 billion, and a 1,000-megawatt (MW) power station and 1.1 million-ton urea plant will be built in Sindri. Verma said that an increase in steel production of 1 million tons will require an investment of more than $900 million and generate a minimum of 1,000 jobs.

The Bokaro steel plant is one of the few SAIL units that has adequate land and is ideal for expansion, said Verma. The company is currently tackling the problem of displacing the local population. It will provide jobs for many of the displaced people, but new demands for jobs are being tabled. These demands are being assessed in terms of genuinely affected persons.

SAIL is also planning to build a medical college in Jharkhand. The 910-bed Bokaro general hospital will be converted to a medical college. Initial clearances for the project have been received, and the college is scheduled to start operations in two years' time.

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