Maharashtra Elektrosmelt Ltd amalgamated with with SAIL
18 Jul 2011
Steel Authority of India Limited's 99.12-per cent subsidiary, Maharashtra Elektrosmelt Ltd has been merged with SAIL. The process of merger of MEL with SAIL was started in April 2006 and concluded with the receipt of the final order from the ministry of corporate affairs on 14 June 2011.
Located at Chandrapur in Maharashtra, MEL is a strategically important unit for SAIL as it meets the requirement of manganese-based ferro-alloys, a key input for iron & steel making.
MEL presently has the capacity to produce about 1 lakh tonnes of manganese based ferro-alloys through the submerged arc furnace (SAF) route. The merger of MEL with SAIL is expected to align the development of MEL and related investments in line with the ferro-alloy requirements of SAIL.
SAIL has already made plans for the expansion of MEL.
SAIL chairman C S Verma said that commensurate with SAIL's further expansion plans, MEL's expansion will be pursued for meeting the full requirement of ferro-alloys of the SAIL steel plants.
''To cater to the additional requirement of ferro-alloys of SAIL plants in future, plans have been drawn up for installation of a third SAF with capacity to produce about 90,000 tonnes of ferro-manganese at an estimated cost of about Rs200 crore.
The process of awarding of contract to the successful bidder is likely to be completed shortly. Addition of a 4 MW capacity power plant (steam turbine & generator) which will use byproduct gases from the proposed third furnace is also on the anvil at an estimated cost of Rs36 crore.
SAIL is exploring the possibility of setting up a captive power plant within the MEL plant area to produce cost-effective ferro-alloys at an expected investment of around Rs1,200 crore.