SAIL Planning To Set-Up Another Steel Plant In Odisha
State-owned steel making company SAIL (Steel Authorities of India Limited) plans to set up a shore-based steel plant with a capacity of three million tonnes per annum (mtpa). The plant would be SAIL’s second in the state after its Rourkela unit, which has a hot metal capacity of 4.5 mtpa. The proposed project would see an estimated investment of Rs 15,000 crore.
“SAIL has written to the state government, evincing an interest of establishing three million steel plant in the coastal part of the state. They have requested for about 3000 acres of land to put up the plant. The investment may be around Rs 15000 crore”, said an Odisha government source.
SAIL is confident that a unit on the coast would optimize costs, streamline operations and ramp up its bottom line. It is understood to be evaluating options for the location of the proposed steel plant. In May last year, the state-owned company had written to Odisha’s industries secretary Sanjeev Chopra, communicating its interest to locate the auto grade steel facility in the state.
Meanwhile, SAIL’s Rourkela unit went through an upgrade from 1 mtpa to 4.5 mtpa in 2015 which was achieved at an investment of Rs 12,000 crore. SAIL has also announced plans to invest an additional Rs 41,000 crore on the Rourkela unit to scale up capacity to 10 mtpa.