SAIL's Jagdishpur unit to start production soon

The ongoing work to revive the Jagdishpur unit of SAIL is nearing completion and the plant will be operational soon, RSP, which is handling the revival work, sources said.

The unit, earlier known as private sector Malavika Steel at Jagdishpur near Amethi, Uttar Pradesh, was purchased by Steel Authority of India Limited (SAIL) in 2009.

It was registered in SAIL's name in June 2010 and the revival work was entrusted to Rourkela Steel Plant (RSP) by it.

The work to revive Jagdishpur SAIL unit (JSU) is quite satisfactory and is nearing completion, RSP sources said after a review of the progress made at a meeting held under the chairmanship of Minister of State for Steel (independent charge) Beni Prasad Verma in presence of SAIL Chairman C S Verma and Managing Director, RSP, S N Singh at Jagadishpur recently.

According to RSP sources here, for reviving the unit and to supply value-added finished products to meet the demand of the region, initially four main units were proposed under phase-1.

Two units namely, a warehouse with a capacity of 12,000 tonnes per annum and a galvanised sheet corrugation unit of capacity 13,000 tonnes per annum were in final stages and will be commissioned soon.

Work for two more units under the current phase -- a TMT Bar Mill of 1,50,000 tonnes per annum and a Crash Barrier Manufacturing unit of capacity 10,000 tonnes per annum was progressing as per schedule, which is likely to be completed by November 2011.

The inputs of GP Sheets, Billets and HR sheets for all the facilities will be sourced from the existing plants and units of SAIL. The finished products will be dispatched through road.

For the phase-2, discussions with M/S KOBE Steel, Japan were being held for which a Joint Task Force team had been formed, which is likely to submit its report in March 2011.

Option for setting up a 1000 MW gas-based power plant and a steel plant based on the technology of Direct Reduced Iron making (Gas based) and Electric ARC Furnace steel making with value-added products were being examined, RSP sources said.

The Steel Minister said SAIL would also be examining the feasibility of setting up a steel processing unit at Barabanki-Gonda in Uttar Pradesh.