Steel Authority of India Ltd (SAIL) today approved a proposal for expansion of Salem Steel Plant (SSP), once a disinvestment target.The expansion would cost around Rs 1,553 crore. The expansion plan envisages installation of steel making facilities within the next 36 months to enable SSP to take advantage of the growing global stainless steel market.The new steel making facility, with the capacity to produce 1,80,000 tonne of stainless steel slabs per annum, would create input security for SSP, currently dependant on external sources for supply of stainless steel slabs. The objective was to make the plant cost competitive.The steel making facility would include a 50-tonne electric arc furnace, single-strand slab caster and a continuous slab caster, and expansion of the plant's cold rolling capacity, among others.Post-expansion SSP's cold rolling capacity will go up from 65,000 tonne to 1,46,000 tonne per annum with the addition of an annealing and pickling line.SSP's expansion plan also has the provision for installation of an additional grinding machine in its hot rolling mill, which produces 1,80,000 tonne of coils/sheets per annum presently.SAIL's corporate plan 2012 envisages dedicated supply of 1,90,000 tonne of stainless steel slabs per annum to SSP from Alloy Steels Plant in Durgapur. SSP's hot rolling mill would, therefore, be able to process 3,70,000 tonne of slabs annually. The total investment in SAIL's corporate plan 2012 would be to the tune of Rs 35,000 crore.
