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Metals & Minerals

SAIL Upgrades as India Targets 200 Million Tons of Annual Steel Production by 2020

The expansion of RSP involves installation of new production facilities including a blast furnace, 7 meter coke over battery, sinter machine,

Released Tuesday, June 26, 2007


Researched by Industrial Info Resources (Sugar Land, Texas). Projects worth over $1.95 billion have been approved by the board of the Steel Authority of India (SAIL) (New Delhi) including approval in principle for the expansion of hot metal capacity at the Rourkela Steel Plant (RSP) to 4.5 million tons per annum (tpa). This project will take $1.87 billion in investment.

The expansion of RSP involves installation of new production facilities including a blast furnace, 7 meter coke over battery, sinter machine, converter with slab caster, a plate mill to produce 4.3 meter wide plates, a 180,000 tpa cold rolled non-oriented (CRNO) and fully processed steel plant for supply to the manufacturers of magnetic cores and components and a steel complex and reversing mill. RSP’s cold rolling mill and finishing lines of the hot strip mill will also be upgraded as part of the plan.

RSP is primarily a bulk supplier of products like electrical steel sheets, spiral welded pipes, plates and other steel items for defense, tin plates and plate based products. Modernization and expansion will help to maximize production of these items.

The go ahead has also been given for a project to rebuild the company’s coke oven batter No 4 at a cost of $56 million to make it pollution compliant to the norms of the Central Pollution Control Board. The turbo blower No 5 supplied by MAN Turbo (Germany) will be uprated by MAN at a cost of $10.5 million.

At Bhilhai Steel Plant (BSP) a $30 million main step down substation-V and transmission network will be installed. This will handle the power output from BSP’s Power Plant-3 being set up by the National Thermal Power Company (NTPC) and Sail Power.

SAIL, 86% owned by the state, is India’s largest steel company with revenues of $9.5 billion in the last financial year. The company had record production of saleable steel at over 12.6 million tons – 4% up in the year. India is projecting steel production of between 180 to 200 million tons in 2019-2020 from the current base of 45.1 million tons. Current annual per capita consumption is 38 kilograms.

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