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Ambar Singh Roy

Blueprint envisages augmentation of capacities

Kolkata April 24 The board of directors of Steel Authority of India Ltd (SAIL) is likely to soon clear a Rs 6,000-7,000-crore capital expenditure plan for Rourkela Steel Plant (RSP).

A capital expenditure blueprint plan that has been prepared in this regard envisages an increase in the steel plant's hot metal production capacity to 3.6 million tonnes per annum (tpa), crude steel to 3.3 million tpa and saleable steel to 3.02 million tpa by 2011.

RSP, at present, has an installed capacity of two million tpa of hot metal, 1.90 million tpa of crude steel and 1.67 million tpa of saleable steel. Against this, production during 2006-07 stood at 2.124 million tonnes of hot metal, 1.990 million tonnes of crude steel and 1.942 million tonnes of saleable steel. The production target for the current fiscal on the existing asset base has been pegged at 2.220 million tonnes of hot metal, 2.08 million tonnes of crude steel and 2.065 million tonnes of saleable steel.

According to Mr B.N. Singh, Managing Director of Rourkela Steel Plant, the SAIL board is likely to soon consider and clear RSP's capital expenditure plan that envisages augmentation of capacities "as has been done in the case of IISCO Burnpur and the Bokaro and Bhilai Steel Plants".

Work on specific sections of the proposed capital expenditure plan has already begun after obtaining "advance approval" in this regard.

Mr Singh told Business Line that an increase in the plant's capacity and a rejig of its product mix was necessary to ensure sustainability of, among other things, RSP's contribution to SAIL's turnover as well as its profitability. At a budgeted turnover of Rs 6,900 crore in 2007-08 — against an estimated turnover of Rs 6,400 crore that is likely for 2006-07 — RSP would contribute to 17-18 per cent of SAIL's turnover in the current fiscal.

More Stories on : New Projects | Steel | Steel Authority of India Ltd

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