MINISTER OF THE STATE IN THE MINISTRY OF STEEL (SHRI BENI PRASAD VERMA)
(a) There are two public sector steel manufacturing companies in the country namely Steel
Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL). The production
of crude steel by SAIL and RINL in 2012-13 has been 13.4 Million tonnes (MT) and 3.07 MT
respectively against the installed capacity of 12.8 MT and 3 MT respectively which is 104%
and 103% of the installed capacity respectively.
(b)&(c) SAIL and RINL have undertaken modernization and expansion plans to enhance its present
capacity of crude steel from 12.8 MT to 21.4 MT and 3 MT to 6.3 MT respectively. Plant-wise
details of investment, present installed capacity and enhanced capacity (post expansion) of
SAIL and RINL are as under:-
Plant Envisaged Investments Crude Steel Production (Mtpa) (Net of CENVAT),Rs.Cr
Installed After Expansion
BSP 17,266 3.93 7.0
RSP 11,812 1.90 4.2
DSP 2,875 1.80 2.2
BSL 6,325 4.36 4.61
ISP 16,408 0.50 2.50
SSP 1,902 - 0.18
RINL 12,291 3.0 6.3
The indicative investment of SAIL for current phase of Modernization and Expansion is Rs.61,870
crore. Besides, a provision of Rs.10,264 crore has been made towards investment in existing
mines under Raw Materials Division (RMD) and development of Rowghat Mine. Expansion of Salem
Steel Plant has been completed in September, 2010. For other plants, efforts are being made
to complete all major production units under current phase of Modernization & Expansion plan
progressively by 2013-2014.
To ensure availability of skilled manpower for manning of these upcoming facilities,in addition
to redeployment from existing manpower, requirement of 9389 skilled manpower has been assessed
in SAIL. Plant-wise detail is as under:
Plant Nos. of recruitments for manning expansion projects at plant
BSP 2262
DSP 396
RSP 1526
BSL 967
ISP 3990
SSP 248
RINL is also presently expanding its capacity from 3.00 MTPA to 6.3 MTPA of liquid steel against
which the new Blast Furnace, Oxygen plant, Power and Water system have been commissioned and are
under operation. Other major units are being commissioned during the current fiscal.
(d) The implementation of Modernization and Expansion plan of SAIL/RINL have been affected
mainly due to unforeseen soil conditions encountered, under estimation of quantities by the
consultants, Logistic problems due to brown field nature of job, inadequate mobilization of
resources by the contracting agencies including PSUs like HEC, HSCL, EPI & BHEL and lack of
deployment of technically competent/skilled manpower by the contractors.
There has been no cost overrun except in ISP Expansion which has been revised to Rs.16,408 crore
against the earlier cost of Rs.14,443 crore. The main reason for cost overrun is increase in
civil & structural work for BOF, CCP & Rolling Mills packages, proportionate increase in
Interest During Construction, Engineering & Construction and provision for future escalations.
At present, for expansion of other plants, no cost overrun is expected. There is no cost
overrun/escalation likely in respect of RINL.
(e)&(f) No, Madam. The question does not arise.
