SAIL turns to rail shield to counter Chinese import crisis

Steel firm banks on rise in supply to the Indian Railways, which has major expansion plans lined up, to aid the impact

With Chinese imports hurting the domestic steel industry, Steel Authority of India Limited (SAIL) will look to cushion the negative impact by increased rail track supplies to the Indian Railways. 

Bhilai Steel Plant (BSP), an entity of SAIL, is the sole supplier of the country’s longest rail tracks, measuring 260 metres (850 ft), which are sold to the Indian Railways.  

Currently, the steel plant supplies about 8,00,000 tonnes of rail to the Indian Railways. It expects orders in the near future to increase considerably on the back of the rail entity’s major expansion plans. 

The BSP is bracing for the potential increase in demand. “The universal rail mill, with a capacity of 1.2 million tonnes, is on the verge of commissioning. It would help BSP to meet the growing demand,” a SAIL spokesperson said, adding that the company’s teams have been working with the Indian Railways’ research and development (R&D) groups for innovations.

Despite efforts, no private steel maker is said to have succeeded in supplying these rails to the Indian Railways. “Even if a private party managed to get a deal, the Indian Railways would not purchase sub-standard quality specially the rail manufactured with dump or imported steel,” the spokesperson added. 

BSP’s continued supply of rail tracks to Indian Railways would act as a support for the steel company, while dealing with challenging times in selling other products due to increased imports from China.  

Besides steel rail, BSP also produces special grade of wide plates and other products from its plate, merchant and wire-rod mills.