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SAIL to invest over Rs5000 cr to revive unit in UP

SAIL to invest over Rs5000 cr to revive unit in UP
PTI
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First Published: Fri, Jan 28 2011. 07 43 PM IST
Updated: Fri, Jan 28 2011. 07 43 PM IST
Lucknow/New Delhi: State-run SAIL (Steel Authority of India) will put in over Rs5,000 crore in reviving its unit in Jagdishpur that may include a 1,000 MW gas-based power plant to be set up in collaboration with Japan’s Kobe Steel.
Besides, it is also examining the prospects of setting up a steel processing unit in Uttar Pradesh, steel minister Beni Prasad Verma said on Friday while reviewing the progress of the ongoing revival work at Maharatna PSU’s Jagdishpur unit.
“Steel Authority of India Ltd will ... be examining the feasibility of setting up a Steel Processing Unit at Barabanki/Gonda,” he said.
The first phase of the revival plan with an investment of Rs100 crore in the sick Malavika Steel that was taken over in 2009 by the Maharatna PSU is already on besides some other works, SAIL chairman CS Verma, who accompanied the steel minister, said.
Talks are already on with M/S Kobe Steels, Japan for the second phase, which includes a 1000 MW gas based power plant with an investment of Rs2,500 crore and a steel plant based on direct reused iron-making technology that would take some three years to complete, Verma said.
A joint task force team with the Japanese firm has been set up which would submit its report in March 2011, Verma added.
An application for gas allocation has also been moved and once it is granted, other formalities like environment clearance and talks with the state government would start.
Altogether, there would be an investment of Rs5,000 crore in the second phase, he said, adding that land for the power plant was available and hoped that there would be no problem in getting the help of the state government in this task.
In the first phase, the company said, “two units namely, a Warehouse with a capacity of 12,000 tonnes per annum and a Galvanised Sheet Corrugation unit of capacity 13,000 tonnes per annum are in final stages and shall be ready for commissioning very soon.”
Two more units comprising a TMT Bar Mill with 1,50,000 tonnes per annum capacity and a crash barrier manufacturing unit of 10,000 tonnes per annum will be completed by November 2011, the company added
Work for the third phase would also get underway along with the second phase, wherein smaller steel plants would be set up in other parts of Uttar Pradesh.
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First Published: Fri, Jan 28 2011. 07 43 PM IST