SAIL (Steel Authority of India Limited), a Maharatna public sector undertaking, is planning to scale up production of hot metal to 50 million tonnes by 2025-26. This will place the company amongst the top global steel producers in the world. The capacities of crude steel and saleable steel have been planned at 48 million tonnes and 46 million tonnes respectively. The hot metal capacity is expected to reach a level of 23.5 million tonnes by the end of 2015-16.
In a letter to shareholders, Rakesh Singh, Secretary, Ministry of Steel and Chairman and MD (Additional Charge), SAIL said, the company had recorded its highest ever hot metal production of 15.413 million tonnes in 2014-15 registering a growth of 6.9 per cent over the previous financial year. Production of crude steel, at 13,909 million tonnes, showed an improvement of 2.5 per cent, he had stated .
Iron oreWith regard to raw materials, the existing requirement of iron ore was being met from captive mines in full. Also the capacities of iron mines were being expanded and new iron ore mines were being developed for ensuring regular supplies of iron ore post ongoing modernisation and expansion programme, Mr. Rakesh Singh said.
The company has stated in its annual report for 2014-15 that it would develop a strong presence in value added products arena and the increase in capacities of mines would take care of higher iron ore needs in line with increased production.
Earlier, during implementation of the ongoing modernisation and expansion programme, the company faced a number of challenges. Despite these, the PSU completed modernisation and expansion of IISCO Steel Plant, Rourkela Steel Plant and Salem Steel Plant. Further, a number of facilities at other plants have become operational.
The growth plan, besides targeting higher production, would also address the need for eliminating technological obsolescence, achieving energy savings, enriching product-mix, reducing pollution, developing mines and collieries, introducing customer centric processes and developing matching infrastructure facilities, the company said.
As a part of its growth plan, the company has signed a memorandum of understanding (MoU) with ArcelorMittal, the world’s leading steel and mining company, to set up an automotive steel manufacturing facility under joint venture arrangement in India. The proposed joint venture envisages installation of a state-of-the-art cold rolling mill and other downstream finishing facilities in India that will offer technologically advanced steel products to India’s rapidly growing automotive sector.
PowerSAIL’s captive power plants supplied about 61 per cent of total power requirement and the balance 39 per cent was purchased from outside, mainly grid utilities. With augmentation of capacities of power plants operated under joint venture, the company would continue to have security in this key input in future as well.
The average power requirement of SAIL plants during 2014-15 was 1,140 MW. This had increased by 60 MW due to commissioning of expansion facilities at RSP and ISP. With an aim to reduce cost, about 42 million units of cheaper power, available in the power exchange, were purchased which contributed to substantial cost savings. This practice of purchasing cheaper power from power exchange will be continued and increasing the quantity of such power will be targeted, the company said in its report.
The company is also in the process of augmenting its captive power generation capacity by installing new captive power plants as part of its ongoing expansion and also through joint venture company with NTPC namely NTPC SAIL Power Co. Pvt. Ltd. (NSPCL). While, new power generation facilities with a capacity of 146 MW have already been added during the year, another 70 MW is expected to be added during next year. Besides this, the proposal for installation of 370 MW capacity through NSPCL is in advanced stage.
As part of its commitment towards encouraging usage of renewable sources, the company has initiated proposals for installation of 200 MW capacity renewable energy projects during the period 2015-19. Out of this, proposal for installation of 15 MW capacity small hydel plant at Mandira Dam, Rourkela is in advanced stage and installation of 1 MW capacity grid interactive Solar PV plant at RSP is under progress.
