The Hindu Business Line : Kerala hopes for early pact with SAIL to revive Steel Complex

The Kerala Government is looking forward to an early agreement with Steel Authority of India Ltd (SAIL) for financial and technical cooperation for the revival of state-owned Steel Complex Ltd in Kozhikode.

The Kerala Industries Minister, Mr Elamaram Kareem, had recently met the Union Minister for Steel, Mr Ram Vilas Paswan, in Delhi and got an assurance that the project with the assistance of SAIL would be implemented in three stages.

A couple of technical experts from SAIL are already at the Steel Complex facility and working on enhancing the annual production capacity from the existing 20,000 tonnes to 36,500 tonnes. This is being done by scaling up the efficiency of the electric arc furnace.

Second phase

According to officials in the Industries Department, the work is expected to be completed by December this year, after which the second phase of the revival project will be initiated. A third furnace is proposed to be added during the phase taking up the production capacity further to 50,000 tonnes.

This will entail an expenditure of Rs 3 crore and the State Government is hoping to get into an agreement with SAIL on the financing mode to implement the entire project.

For, the third phase the State envisages an expenditure of Rs 50 crore to establish a new rolling mill for the manufacture of TMT bars used in the construction sector. The mill will have an annual capacity to roll out 72,000 tonnes of TMT bars and it is slated to be completed within 18 months of the commissioning of the second phase.

Improved performance

Steel Complex, which was on the verge of closure, has improved its performance in 2006-07 with the sales turnover having gone up to Rs 14.66 crore from Rs 11.97 crore in the previous year. In the first five months of the current year, the company has registered a turnover of Rs 7.33 crore, which is expected to cross Rs 20-crore mark by the end of the year.

The company has also gone in for one-time settlement of its dues to the banks. It has settled Rs 7.87 crore dues to the State Bank of India in two instalments.

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