Steel Authority of India Ltd is exploring Kobe Steel's technology to modernise Visvesvaraya Iron and Steel Ltd (VISL) plant located in Bhadravati, Karnataka.

At present, SAIL is in talks with Japanese steel maker to float a joint venture to increase its steel output. “The Japanese steel major is doing techno-feasibility study of all our plants, once we get the report, it will help us devise a strategy for VISL plant modernisation,” said Mr C.S. Verma, Chairman, SAIL.

“VISL plant in Bhadravati is well suited for making alloy steel and speciality steel. Also it is located close to the port and is well suited for exports,” he added.

Modernisation strategy

A multi-pronged strategy is being put in place for VISL's modernisation. “Under short-term measures, without much capital investments, the deficiencies in the operations would be eliminated, which would give a fillip to the plant. Here, Rs 80-90 crore is to be spent to upgrade the existing machinery to commence steel production immediately,” said Mr Verma.

“Under long-term measures, it is planned to build proper capacity to work at full efficiency by capacity addition. Under this plan, Rs 600-700 crore will be spent to bring in modern steel making technology and machinery for exports,” he added.

After the long-term measures are implemented the capacity of saleable steel is expected to go up to around 320,000 tonnes a year.

Raw material shortage

After the closure of mines at Kudremukh and now Bellary, VISL plant is starved of raw material. “We have approached the Central government to allot a captive mine in Karnataka. The government is pro-active, but we are waiting for environmental clearance,” said Mr Verma.

Award

SAIL has bagged ‘Industry Excellence Award 2011' instituted by The Institution of Engineers-India in the category for ‘Overall Business Excellence and Industry Practices'. The award was received by Mr Verma at the inaugural session of the 26th Indian Engineering Congress held here.

anil.u@thehindu.co.in

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