The Hindu Business Line : Bokaro Steel Plant plans Rs 1,950-cr expansion

According to Mr U.P. Singh, Managing Director of BSP, the plan will be implemented over the next three to four years. During 2004-05, BSP will be investing around Rs 440 crore, which has already been sanctioned by SAIL's board of directors.

During 2005-06, BSP wishes to invest Rs 710 crore and another Rs 850 crore in several new schemes during 2006-07.

"With these moves we would be expanding our hot metal production from the present level of four million tonnes to seven million tonnes by 2011-12," Mr Singh told reporters at a press conference.

The SAIL board has already approved the modernisation of cold rolling mill for Rs 218.05 crore, rebuilding of coke oven battery No. 5 for Rs 142 crore and another Rs 33 crore for the cast house slag granulation in the fourth blast furnace.

"To ensure smooth and sustained operation of the five blast furnaces, we are contemplating setting up CDI system, cast house slag granulation plant and coal tar injection," he said.

BSP is planning to modernise the Steel Melting Shop (SMS). It hopes to introduce continuous casting system in SMS-1. MECON has been asked to work out a feasibility report on it. SAIL board is likely to approve a computerised process control in SMS-2. An air turbo compressor and a oxygen turbo compressor are planned for the oxygen plant.

Moreover, several small schemes with investments to the tune of Rs 10 crore or less are being planned to improve the productivity of the plant, debottleneck the system and smoothen the operation.

"With the implementation of the above schemes, the capacity of the plant will be substantially increased to seven million tonnes by 2011-12 and there will be a qualitative improvement in the product mix and remain the market leader," Mr Singh said.

BSP is keen to produce coated flat steel products in the next three years. For that technological support will be sought from an overseas player. Mr Singh clarified that BSP will continue to focus on flat products rather than long products.

During 2003-04, BSP produced 3.75 million tonnes of crude steel and 3.45 million tonnes of saleable steel. The continuous casting shop, whose contribution was 65 per cent of BSP's total steel production, operated at 113 per cent of its capacity to produce 2.45 million tonnes.

Mr Singh and his team were reluctant to disclose the annual net profit of BSP in 2003-04. However, they said that turnover increased to Rs 7,300 crore from Rs 6,200 crore during 2002-03. In the last fiscal the plant went "soft on exports".

For 2004-05, BSP's targeted hot metal production is 4.4 million tonnes, crude steel is four million tonnes and total saleable steel is 3.57 million tonnes. The plant's turnover has been targeted at Rs 8,200 crore and net profit at Rs 900 crore.

To overcome the imported coking coal shortage, BSP has started injecting sponge iron in its blast furnace. The management is considering setting up a sponge iron unit. The ratio of mixing imported coal with domestic coal has been changed from 50:50 to 35:65.

BSP has successfully developed low carbon content steel for the automobile players like Ashok Leyland and Bharat Earth Movers. "We are also in talks with Maruti Udyog for selling these items," he said.