 "SAIL enhances rail production capacity to 2 mtpa")
The state-run Steel Authority of India Limited (SAIL) had increased its rail production capacity to 2 million tonne per annum (mtpa).
The development is significant as it would help the country's largest integrated steel maker to meet the demand of Indian Railways (IR) besides upgrading its export portfolio. The IR had been procuring rails only from the SAIL though private steel makers were also in the race for supply.
Steel Minister Chaudhary Birendra Singh on Monday afternoon inaugurated the new Universal Rail Mill (URM) in Bhilai Steel Plant (BSP). The 1.2 mtpa URM was part of SAIL expansion and modernization programme that would increase BSP's steel making capacity to 7 mtpa.
BSP is the only entity of SAIL producing rail. Apart from the new URM, the BSP's 8,00,000 tonne rail mill would also be operation to add company's total rail mill capacity to 2 mtpa.
Besides, the URM would be producing world's longest rail in the single piece measuring 130-meter and 260 meter with single weld joint.
The SAIL today dispatched the first consignment of 260-meter rail from Bhilai. The consignment carried 1000-tonne of rail that IR would be using in Raidurg section of Andhra Pradesh. The IR had been demanding long rail. It had been procuring about 800,000 tonnes of rails from the SAIL annually. The order volume had increased significantly as IR had been on a major network expansion programme.
Besides meeting the IR demand, the new URM would also strengthen SAIL's export portfolio. "We would now be in a position to supply rail globally," SAIL Chairman P K Singh said. The new URM was a milestone achievement not only for the BSP but also for the SAIL and the country, he added.
At present, SAIL had been exporting rails to 11 countries. The old mill that would continue in operation had been producing short rail, which is in demand in the international market. The global order that SAIL has been receiving is for short rail.
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