SAIL plans Rs11,262 crore capex to double Bhilai Steel Plant capacity
05 Apr 2007
Mumbai:
The Steel Authority Of India Ltd (SAIL) will invest
Rs11,262 crore to nearly double production capacity
at its Bhilai Steel Plant (BSP) to seven million tonnes
per year.
Bhilai plant has a capacity to produce 3.93-million tonnes per year at present.
The
company''s board has given its in-principle approval
to the proposed modernisation and expansion, SAIL said
in a statement.
SAIL has appointed MECON as consultants for BSP''s expansion
plan. This includes installation of a new blast furnace,
new coke oven battery and a new sinter plant.
Post-modernisation, BSP would become a 100 per cent continuous casting plant with addition of a new four-million-tonne steel melting shop.
BSP produces long steel products, including rails.
The
expansion plan envisages installation of a universal
beam mill of one million tonne capacity to produce beams
up to 1.1-metre depth. New bar and rod mill capacity
of 0.9 million tonne will be created.
To meet the growing demand from railways, a new rail
mill of 1.2 million tonne. capacity would also be installed.
The board of directors of SAIL had already given in-principle approval for expanding crude steel capacity at IISCO to 2.5 million tones, and of Bokaro Steel Plant to 7 million tonnes.
SAIL
shares gained Rs1.75 or 1.57 per cent at Rs112.90 during
intra-day trading on the Bombay Stock Exchange (BSE).
