New Delhi: Steel Authority of India Limited (SAIL) will set up four steel processing units, one each in Uttar Pradesh, Jammu & Kashmir, Rajasthan and Bihar at an estimated investment of up to Rs600 crore.
“We will set up steel processing units in Amethi in UP, Kashmir, Jhunjhuna in Rajasthan and Gaya in Bihar. Investment for each plant will be Rs100-150 crore. SAIL will invest the entire amount,” Minister of Steel and Chemicals and Fertiliser Ram Vilas Paswan said.
All these units would procure raw material like hot rolled (HR) coil from the integrated steel plants of SAIL.
Amid rising input cost pressure, SAIL said that it is securing raw material for its units and has started developing its mining blocks.
“The company is strengthening raw material security and has already started the process for development of its four million tonne per annum capacity coking coal block with captive washery at Tasra and development of Sitanala coking coal block,” SAIL Chairman S K Roongta said.
“To maintain steel prices and increase the availability of the alloy in the domestic market it is imperative to set up new production units in the country,” he said.
Meanwhile, Paswan ruled out the possibility of an increase in steel prices any time soon, saying prices of the metal are softening in the global markets.
The minister said that the country has set up a steel production target of 124 million tonnes per annum by 2012 to bridge the gap between demand and supply. “The domestic demand for the metal is rising at 13% whereas production is increasing by 6% a year,” he added.