Bhushan Steel to ramp up capacity

Capacity upgrade by 2013 end, to invest Rs 13,183 cr

Bhushan Steel Ltd (BSL), engaged in manufacturing of diversified steel products, has firmed up plans to double steel-making capacity at its Meramandali facility near Dhenkanal in Odisha to six million tonne per annum (six), from three mtpa presently.

The capacity up-gradation which will be completed by end of 2013 and will see capital investment of Rs 13,183 crore, said Sanjiv Kapoor, vice president (corporate affairs), BSL.

At present, BSL employs about 15,000 employees both directly and indirectly. After completion of the second phase work, the total employment potential is likely to touch 25,000.

In the first phase, the company invested Rs 5,828.15 crore.

Following the capacity expansion, the steel company’s iron ore requirement will surge to 12 mtpa from six mtpa presently. BSL is devoid of any iron ore linkages and is sourcing the raw material from state controlled miner Odisha Mining Corporation (OMC) and private suppliers. The company has filed many applications for iron ore leases but they are still pending at the state government level.

BSL’s integrated steel complex at Meramandali has a product mix of sponge iron, pig iron, billets, slabs and hot-rolled coils.

The company is also executing two mtpa iron ore beneficiation plant in the mineral rich Keonjhar district along with a 138-km iron ore slurry pipe line planned to be laid from Nayagarh to Meramandali, the site of the integrated steel plant. Besides, it is also setting up a four mtpa pelletisation plant at Nayagarh. Both the beneficiation and the pellet projects would cost Rs 2,900 crore.

The company is setting up an SME (small & medium enterprises) steel park to develop downstream industries and ancillary units near its Meramandali plant facility. The project has already got the approval of the High Level Clearance Authority (HLCA) of the Odisha government. Land acquisition for the project is underway.

BSL, which registered a turnover of Rs 11,800 crore in 2012-13, is also setting up a commercial airport at Arahata in Angul district to cater to its own requirement and other surrounding Industries.

“As regards construction of other basic infrastructure, we are also planning to set up an integrated township in the vicinity of our steel plant which will be consisting of an engineering college, 500-bedded super specialty hospital, club and residential facilities. The project has already been approved by State-Level Single-Window Clearance Authority (SLSWCA) and land acquisition for the project is in progress”, Kapoor informed.