The board of Steel Authority of India Ltd (SAIL), India’s largest steel producer, has approved the setting up of four steel processing units (SPUs)
KOLKATA: The board of Steel Authority of India Ltd (SAIL), India’s largest steel producer, has approved the setting up of four steel processing units (SPUs) in addition to the five that have already been sanctioned.
These new units, which are like finishing mills, will come up at Amethi in Uttar Pradesh, Kashmir, Jhunjhunu in Rajasthan and Gaya in Bihar. Announcing this in Delhi on Thursday, steel minister Ram Vilas Paswan said that each of these units would cost Rs 150-200 crore.
The nine SPUs will be in six states where SAIL doesn’t have facilities to meet market demand for tailor-made steel products. Sources said that the aim is to provide customised steel products through these SPUs, which are downstream value-added facilities. “Steel demand is high and this will help create the capacity to increase supply and reach products to customers. Penetration of steel products will increase and per capita steel consumption in rural areas will go up,” an official said.
The SPUs will use hot-rolled coils, billets and TMT bars produced by SAIL’s integrated steel plants to manufacture a wide variety of steel items used by the common man. The SPU being set up at Billowa village in Gwalior in Madhya Pradesh will produce TMT bars of 8-25 mm diameter from billets supplied by SAIL’s Bhilai Steel Plant. To be set up at a cost of Rs 83 crore, this unit will have a TMT bar mill of 1,00,000 tonne per annum capacity. Other facilities will include mill trains, TMT line, cooling bed, cut-to-length bundling and tying facilities for TMT bars. The SPU will also have warehousing facility. It is expected to be completed in 18 months.
The SPU in Hoshangabad in MP will produce angles, beams and joints and TMT bars at an investment of Rs 154 crore. The Ujjain SPU will cost Rs 154 crore.
g_nandini@dnaindia.net
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