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Jindal Steel's rail mill starts production

Kohinoor Mandal

Kolkata , Nov. 14

JINDAL Steel & Power Ltd has finally commissioned its rail-cum-structural mill, which has also started commercial production, according to Mr V. Gujral, Vice-Chairman and CEO of the company.

The plant, located in Chattisgarh, has a capacity of 7.5 million tonnes per annum and has been set up at a cost of Rs 396 crore. Apart from the rail-cum-structural mill, the plant has an existing sponge iron facility with a capacity of 6.5 million tonnes.

According to Mr Gujral, the rail mill was commissioned on November 1, 2003. "After a successful commissioning, we have already started commercial production. There is a good demand for our products in the market," he told Business Line.

He said that the company is already selling 15,000 to 20,000 tonnes of columns and beams and other heavy and medium structurals every month.

With the commissioning of this mill, the company has broken the monopoly of the Bhilai Steel Plant of Steel Authority of India Ltd in the rail production market. The new plant is also equipped with a flash butt welding plant for welding from 240 metres to 480 metres long rails. According to Mr Gujral, the company has started receiving orders for rails both from the domestic and overseas buyers.

"We have received a huge order from one private sector Indian company," he added.

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