Wednesday, August 11, 2010

Milestone of India - PSU Salem Steel Unit on Stream.

SALEM: Steel Authority of India Ltd (SAIL) Chairman C. S. Verma on Monday commissioned a new 70,000 tonnes per annum tension levelling line at the Salem Steel Plant (SSP) here.

Installed at a cost of Rs.39.40 crore as part of the SSP's modernisation and expansion plan, the tension levelling line, supplied by Redex of France, is a value-addition process that will enhance flatness in stainless steel coils.

Mr. Verma was here on his maiden visit to SSP for an appraisal of the facilities that had come up under the plant's the Rs.2,000-crore expansion-cum-modernisation project.

Mr. Verma mooted the concept of ‘mine development operator' to ensure production quality and ‘long-term raw material security'.

The concept of adopting mine development consultant would ensure 30-35 per cent increase in procurement of quality raw materials, he added.

This move, besides SAIL's Rs.1,500-crore expansion programme for domestic coking coal mines, would aim to reduce the dependence on import of key inputs, which had been a main factor behind fluctuating prices. “We have evolved a package including new mining leases to source the coal,” he said and pointed out that the new projects would enhance the availability.

Existing captive coal mines at Chasnalla, Jitpur and Ramnagore would be developed to enhance production.

Outlining the recently unveiled SAIL's major expansion programme, Mr. Verma said that about Rs.60,000 crore had been earmarked to transform the company into a ‘more competitive entity against global players.' This would become a reality as SAIL had joined hands with steel giants like Posco and other leaders in the market for new ventures.

The target would be an annual production of 23 million tonnes by 2012 from the present 14 million tonnes. By 2020, it should touch 60 million tonnes.

Mr. Verma said SAIL could see the price behaviour of steel stabilising in the last two weeks promising good tidings in the days to come. Despite sluggish market conditions and flooding of Chinese products, SAIL registered a sales turnover of Rs.9,931 crore in the first quarter of the current year, showing an increase of 2 per cent over the corresponding period last year.

On SSP, he said the expansion of the plant would enhance the production capacity to 1.80 lakh tonnes of slabs, 3.64 lakh tonnes of HR coils, 1.46 lakh tonnes of cold rolled stainless steel and salable steel from 1.75 lakh to 3.40 lakh tonnes. “The expansion is right on schedule and soon will have a formal inauguration,” he said and added that “the thought of privatisation is not in the minds with regard to SAIL.”

Director (Personnel) B. B. Singh, ED, Chairman's Secretariat N. Kothari, GM (Corporate Affairs) R. K. Singhal, Salem plant Executive Director Pankaj Gautam and other senior officials were present on the occassion.

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