SAIL to set up steel processing unit near Srinagar

The Steel Authority of India Ltd (SAIL) plans to set up a steel processing unit (SPU) at Lasipora Pulwama, near Srinagar, in Jammu & Kashmir.

The project is awaiting final approval from the SAIL board.

The foundation stone for the project was laid as far back as in September 2008 and SAIL acquired around 25 acres of land at Lasipora in Pulwama district in October 2009, minister of state for steel A Sai Prathap informed the Rajya Sabha on Friday.

SAIL has already in-principle approved the project and work on setting up the SPU is expected to commence after Stage-II (final) approval by SAIL Board, the minister stated, adding that it would take 18 months for commissioning from Stage-II approval.

Production of finished steel in the country, meanwhile, is estimated to have increased to 59.58 million tonnes (provisional) during 2009-10 from around 57.16 million tonnes in 2008-09, the minister stated.
 
He said the ministry of steel had convened a meeting of major integrated steel producers on 22 April to discuss issues regarding production, demand and market price of steel.

Issues concerning international and domestic steel production, market demand, price movement of raw materials and steel as well as the short-term outlook in the steel market were discussed in the meeting.

The minister said, steel being a totally deregulated sector, investment and performance of the sector are determined by market forces. The role of the government is limited to that of a facilitator.

The National Steel Policy lays down a roadmap for the entire steel sector, including the large and small/secondary producers.  The ministry of steel is working for promotion of the whole of the steel sector in the country, including integrated steel units and secondary steel units as well as the steel consuming industries, he stated.