Question : MODERNISATION EXPANSION OF STEEL PLANTS



(a) whether the Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) have undertaken modernisation and expansion of their steel plants;

(b) if so, the details thereof including the current status of the modernisation/ expansion of the various plants under SAIL and RINL;

(c) the estimated expenditure incurred/likely to be incurred on the said projects;

(d) whether the Government has taken adequate measures to ensure easy and assured supply of raw materials required for steel production including allocation of captive mines in this regard; and

(e) if so, the details thereof and the time by which the modernisation/ expansion projects are likely to be completed?

Answer given by the minister

THE MINISTER OF STEEL, MINES AND LABOUR AND EMPLOYMENT(SHRI NARENDRA SINGH TOMAR)

(a)to(e): A Statement is laid on the Table of the Lok Sabha.

STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) OF THE LOK SABHA STARRED QUESTION NO.283 FOR ANSWER ON 28/07/2014 TABLED BY SHRI MUTHAMSETTI SRINIVASA RAO (AVANTHI) AND SHRI P. KUMAR, MEMBERS OF PARLIAMENT REGARDING MODERNISATION/ EXPANSION OF STEEL PLANTS.

(a)to(c): Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL), have undertaken modernization and expansion at Bhilai Steel Plant (BSP) in Chhattisgarh, Bokaro Steel Plant (BSL) in Jharkhand, Rourkela Steel Plant (RSP) in Odisha, Durgapur Steel Plant (DSP) in West Bengal, IISCO Steel Plant (ISP) in West Bengal, Special Steel Plant (SSP) in Tamilnadu and Vizag Steel Plant (VSP) of RINL in Andhra Pradesh to enhance crude steel production capacity from 12.8 million tonnes per anum (MTPA) to 21.4 MTPA and liquid steel capacity of RINL from 3.0 MTPA to 7.3 MTPA respectively.

The expansion project at Salem Steel Plant has been completed in September, 2010. At Rourkela Steel Plant, country’s largest Blast Furnace (4060 cum) is operational since Aug’13. Three new Coke Oven Batteries, one each at RSP, ISP and DSP are operational. Two new Sinter plants at RSP & ISP and one new Sinter machine at BSP have been put into operation. The 3rd Slab Caster at RSP and Wire Rod Mill at ISP have also been completed. Hot trials have been taken in 1st Billet Caster of ISP. 3rd BOF & Plate Mill Rolling facilities at RSP have been completed in Jun’14. At Bokaro Steel Plant, up-gradation of one Blast Furnace and re-building of two Coke Oven Batteries have been completed. Testing and trials for various facilities in the new Cold Rolling Mill at BSL are on. The indicative cost of current phase of expansion and modernisation plan of SAIL is about Rs. 61,870 crore.

Execution of almost all major packages of Stage-I of 6.3 MTPA expansion plan of RINL-VSP has been completed. Production has already commenced from major Units, viz., Raw Material Handling Plant, Sinter Plant-3, Blast Furnace-3, Turbo Blower-4, Steel Melting Shop-2, Wire Rod Mill-2 and other auxiliary systems viz., Water systems, Power systems, and other Utility systems. With respect to Stage-II Units of expansion plan, Furnaces of both the Mills of Stage-II, i.e. Special Bar Mill and Structural Mill are planned to be commissioned by 3rd quarter of 2014.

(d) For the implementation of ongoing modernization and expansion plan at SAIL Steel Plants, the annual requirement of iron ore will increase from the present level of 25 MT to about 39 MT. This requirement shall be met by increasing the capacity of existing iron ore mines at Kiriburu, Meghahatuburu, Gua and Bolani. Demand for future expansions will be met from development of new iron ore mines at Chiria, Taldih and Rowghat with state of art technology. Due to non-availability of metallurgical coking coal in country, at present, 20% of SAIL’s requirement is met through indigenous sources (own production and from Coal India) and about 80% of SAIL metallurgical coal requirement is being met through imports. RINL gets its entire requirement of iron ore from NMDC Ltd. and meets its requirement of coking coal mainly from imports.

(e) The expansion programme of SAIL is expected to be completed by December, 2014 in BSL, March, 2015 in DSP, June, 2015 in BSP, December, 2014 in RSP and December, 2014 in ISP. Expansion plan of RINL is expected to be completed by 3rd quarter of 2014.

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