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Union Steel Minister inaugurates SAIL's Bhilai Steel Plant
expansion
New Delhi,
February
11, 2008
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The Hon'ble Union Minister for Chemicals & Fertilisers and
Steel, Ram Vilas Paswan inaugurated the Rs 11,262 crore
expansion programme for Steel Authority of India Ltd's
flagship steel plant, Bhilai on 9th Feb '08. Nearly two
decades after its last expansion to 4 MT which brought with it
the Plate Mill as the country's only mill producing wide and
heavy steel plates, Bhilai today entered the third phase of
expansion in capacities - one that will strengthen its
steel-making capabilities and introduce new products into its
basket. |
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As an integral part of SAIL's growth plan that envisages
capacity augmentation to 26 MT by 2010, the Expansion &
Modernisation plan of Bhilai will enhance the Plant's hot
metal capacity from 4.08 to 7.5 MT while the crude steel
capacity will go up to 7 MT from 3.92 MT. The saleable steel
capacity will go up from 3.15 MT to 6.53 MT.
Present on the occasion as Chief Guest was Chief Minister of
Chhattisgarh, Dr Raman Singh. Hon'ble Speaker, Chhattisgarh
State Assembly, Prem Prakash Pandey, Member of Parliament from
Durg, Tarachand Sahu, Secretary Fertilisers & Steel,
Government of India, Dr JS Sarma, Additional Secretary &
Financial Advisor to the Ministry of Steel, BS Meena, Chairman
SAIL, SK Roongta, MD, Bhilai Steel Plant, R Ramaraju were the
other dignitaries present on this important and landmark event
for SAIL.
Paswan who also addressed members of the local and national
media at Bhilai Niwas before proceeding to the site of
inauguration to address a large gathering comprising of
members of the Bhilai collective, said the domestic steel
industry has in recent times been experiencing a growth never
witnessed before. Steel consumption in the country is
increasing by about 12% while the domestic production capacity
is growing by about 7%, said Paswan adding that the government
is keen on giving a level playing field to steel industries
both in the public and private sector to fill this gap between
production and consumption. While the per capita consumption
of steel in the country leaves much to be desired specially
when compared to China, what is encouraging is that India is
steadily climbing up the ladder as a steel producing country,
Paswan said. Today it is the fifth largest producer of steel.
The government is putting in place plans to increase
capacities so that by 2015, India becomes the second largest
producer of steel in the world, he said.
The last four to five years have also witnessed the
revitalisation of SAIL, Paswan said. The company that is
posting handsome profits now, is investing about Rs 51,000
crore in expanding capacities and modernising its facilities.
This ambitious plan includes an investment of Rs 11,262 crores
in Bhilai to increase the hot metal capacity from 4.6 MT to
7.5 MT, he said.
The Bhilai Plant that entered its 50th year of production
since the first metal was tapped in 1959 occupies a special
place in India steel industry charts, Paswan said, adding that
a function was organised by the Ministry of Steel and SAIL in
New Delhi on 4th Feb '08 to mark the beginning of the golden
jubilee celebrations. SAIL is playing an important part in
nation's development, he said citing the example of Indian
Railways that is dependent on SAIL for sourcing its entire
requirement for steel. Referring to Bhilai as the Jewel in
SAIL's crown, meets the entire requirement of rails, he said.
It has won the prestigious Prime Minister's Trophy for best
integrated steel plant in the country seven times out of the
13 times that it has been awarded so far, he said.
Referring to the expansion and modernisation plans, Paswan
said Bhilai and SAIL have to achieve best techno-economic
parameters to compare with world class standards. Public
sector steel companies are no less when it comes to
performance, he said, adding that any delay in project
execution is going to be costly. It must therefore be ensured
that there is no time overrun, he said.
Interacting with members of the media, Paswan also expressed
his views about the raw material situation and steps that SAIL
has taken to strengthen and consolidate its position as a
leading steel producer. While the company is teaming up with
NMDC and RINL for setting up new steel plants in ore rich
states, it is also playing a key role in formation of special
purpose vehicle (SPVs) with other key PSUs like CIL, NTPC,
NMDC etc., he said.
The ministry is also keen on intensifying R & D activities in
steel making technology in the country. About Rs 8000 crore
that is lying in Steel Development Fund would be utilised for
R & D. With deposits close to 25 billion tonnes, there is no
dearth of iron ore in the country, he said, adding that the
ministry is engaged in introducing new technology to utilise
lower grade iron ore available in the country. Referring to
the mining policy, he said while states reserve the right to
allot mines, some changes need to be made to ensure that there
is no improper distribution of iron ore among states.
In his address, Chief Minister, Dr Raman Singh expressed
confidence in Bhilai's capabilities to perform beyond
capacity. It has been performing beyond rated capacity for
many years and I am sure that when its capacity is increased
to 7.5 MT after the expansion plan, Bhilai would end up
producing as much as 8.5 MT. Similar sentiments were expressed
by the Union Minister. All speakers congratulated Bhilai for
entering its golden jubilee year. Paswan announced a reward of
Rs 2000 for each employee of Bhilai Steel Plant for their
performance.
Addressing the gathering, Secretary Fertilisers & Steel, Dr JS
Sarma acknowledged Bhilai's contribution to the industry and
nation. Hailing the Bhilai work culture, he said it is vital
that the expansion projects are implemented on time. In his
address, Chairman SAIL, Roongta also hailed Bhilai's excellent
work culture and acknowledged Bhilai's contribution to lift
the performance of the company. He thanked the Union Steel
Minister for his guidance and support for SAIL's expansion
plans. Roongta also thanked the Chief Minister, Dr Raman Singh
for the support that the State Govt has extended in the
company's efforts to secure Rowghat iron ore mines in Bastar
area of Chhattisgarh for Bhilai Steel Plant. The return on
capital employed is the highest for BHilai among all steel
plants in the country, Roongta said, expressing faith that
Bhilai would complete its expansion and modernisation
programme on time.
Today when global steel leaders are at our doorstep, SAIL's
Corporate Plan 2010 drawn out carefully to exploit each
plant's strengths is therefore aimed at securing Bhilai's
future in a fiercely competitive market scenario. The
Expansion & Modernisation programme of Bhilai that the Union
Minister, Paswan inaugurated will see the erection of a new 7
metre tall coke oven battery retrofitted with state of the art
pollution control equipment and a new 4060 cu. Metre blast
furnace. During the implementation of Corporate Plan, Bhilai
will also modernise and re-build some of its older coke oven
batteries and blast furnaces, thus strengthening the Plant's
basic coke making, iron and steel making capabilities and
replacing Russian machinery and equipment that have clocked
nearly five decades of round the clock operation.
State of the art technology is being brought in while phasing
out old and energy intensive technology. Under the Corporate
Plan 2010, Bhilai's SMS I with energy intensive twin hearth
furnaces will be phased out giving place to a new steel
melting shop ensuring that Bhilai produces 100% steel through
the basic oxygen and continuous casting route. The new SMS III
will have three 160 T convertors, two 6-strand billet casters,
a 6 Strand Bloom-cum-Billet Caster and a 3 Strand Beam Blank
Caster.
While Bhilai's capabilities in the long product category will
be further strengthened with a 0.9 MT new bar & rod mill and a
1.2 MT Universal Beam Mill, which will produce beams upto 1
metre depth and will be the only one of its kind in India. The
Corporate Plan will also ensure that Bhilai's rail-making
capabilities remain the best. A new 1.2 MT Universal Rail Mill
is being installed. It is worth mentioning that Bhilai
produces the 'cleanest rail steel' in the world with hydrogen
content less than 1.5 ppm.
Along with additional new facilities, existing facilities are
also being upgraded to enable higher production of value added
steel with overall improvement in productivity. Bhilai's Raw
Material Handling facilities is being strengthened with a new
coal handling and ore handling plant. A new compressed air
station, a new 2 x 1250 tonnes per day Oxygen Plant and
facilities for power distribution are being introduced to
strengthen services & auxiliaries zone.
The first metal flowed out of the blast furnace on 4th of Feb
1959. The flagship unit of SAIL, adjudged as the best
integrated steel plant in the country and honoured with the
Prime Minister's Trophy seven times, has consistently been
making profits for two decades now, including the last
recessionary period when other steel makers were running into
losses. In the last fiscal year 2006-07, Bhilai gave a profit
of Rs 4271 crores. In 2006-07, Bhilai earned the distinction
of having earned the maximum profit of Rs 4271 crores.
Producer of both long and flat steel, Bhilai is the sole
supplier of world class rails to the Indian Railways, its
rails laid throughout the length and breadth of our country as
well as in eight other countries. Bhilai also manufactures
plates, light and heavy structurals, wire rods and semis. The
Plant specialises in the production of high strength UTS 90
rails, high tensile and boiler quality plates, TMT bars and
wire rods, electrode quality wire rods, heavy structurals and
merchant products including almost the entire range of TMT
bars with high corrosion and earthquake resistant properties.
With capabilities enhanced to produce rails in rolled lengths
of 80 metre and welded panels up to 260 metre from its state
of the art Long Rail Complex commissioned in June 2004 by the
Union Minister, Ram Vilas Paswan himself, Bhilai has become
the first in the country to produce long rails for the Indian
Railways in 130 m and 260 m lengths. The Plant has supplied
DMR grade special plates for manufacturing Indian Navy's
warship, special steel for the J & K rail link and a number of
important projects of critical importance. Paswan visited
Bhilai again in November 2006 to inaugurate some modernisation
and addition schemes in Bhilai including the modernised B
strand of Wire Rod Mill.
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