SteelMin to revive UP unit, to set up 1,050-MW plant

Steel Minister Beni Prasad Verma today said the government was exploring options to revive SAIL's Jagdishpur unit -- formerly Malavika Steel -- in Uttar Pradesh after the Petroleum Ministry rejected a request for allocating gas to it.

"The Steel Ministry had requested Petroleum and Natural Gas Minister S Jaipal Reddy for gas allocation to the unit. Our demand has been rejected as steel is not the priority for gas, as power and other sectors. However, we are exploring other options for the revival of Malvika Steel," Verma said.

Steel Authority of India Ltd (SAIL) has committed Rs 10,000 crore for the revival of the unit, which will also have a 1,050 MW power plant, Verma said.

The unit in Amethi is stuck due non-availability of gas, and the Steel Ministry had sought allocation of 2.1 million metric standard cubic metre per day (MMSCMD) gas from the KG D6 basin.

State-run SAIL had bought the private unit at Jagdishpur, the former plant of Malavika Steel in 2009 and plans to convert it in an integrated plant with an annual capacity of 2 million tonnes.