BHUBANESWAR: With an aim to expand the capacity of its Rourkela Steel Plant (RSP), SAILBSE 2.81 % has sought Odisha government's support for its raw material requirements in the coming days.
"We have plans to invest Rs 30,000 crore to Rs 35,000 crore for expansion of RSP's capacity from 4.5 mtpa to 10 mtpa by 2025-26. Therefore, we require adequate iron ore and seek support of the Odisha government," SAIL Chairman CS Verma told reporters after attending the review meeting by Union Steel Secretary Rakesh Singh.
The Maharatna PSU has already undertaken expansion of its 2 mtpa steel plant at Rourkela to 4.5 mtpa by investing Rs 12,000 crore, Verma said, adding that it plans to further expand the capacity of RSP, which has the biggest blast furnace of 460 cubic meter capacity in the country.
SAIL, which already has two major iron ore reserve clusters at Balani and Barsuan, now seeks more such raw material linkage in view of its proposed expansion.
Replying to a question, Verma said the company is presently working out how much more iron ore would be required after expansion of its RSP project.
"We hope the state government will support and provide the required amount of raw material," he said.
The steel and mines department of Odisha government has, however, estimated that iron ore mines with SAIL have the total reserve of 512 mt against its requirement of 480 mt over 30 years after expansion of RSP's capacity to 10 mtpa.
On SAIL's proposed acquisition of Nilachal Ispat Nigam Limited at Kalinga Nagar in Odisha, Verma said the company is keen to acquire the facility.
"The major stake lies with MMTC under the Ministry of Commerce. If SAIL is given adequate stake, it would be able to run NINL," he said.
Source : Economic Times
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