Maharatna Steel Authority of India Limited (SAIL) today signed a deed of transfer with Burn Standard and Co. Ltd. (BSCL) for the transfer of BSCL's Refractory Unit at Salem to the newly formed subsidiary of SAIL, namely SAIL Refractory Company Limited (SRCL). The deed was signed by BSCL Managing Director Mr. D. Marandi and SRCL Chairman Mr. S. Hanumantha Rao in the presence of Member of Parliament & Chairman of the Parliamentary Standing Committee on Industry Shri Tiruchi Siva, Member of Parliament Shri K.B. Shanappa, Secretary (Steel) Shri P.K. Misra, Secretary (Heavy Industries) Shri S. Sundareshan, Addl. Secretary & Financial Advisor, Ministry of Steel Shri S. Machendranathan, SAIL Chairman Shri C.S. Verma, SAIL Directors and other senior officials of Parliament, Ministry of Steel, Dept. of Heavy Industries and the two corporates. Highlighting the crucial importance of refractory material in iron & steel production, SAIL Chairman Shri Verma termed the transfer as "an enduring and mutually beneficial move" for both the companies.
The process of transfer of BSCL's Salem Refractory Unit as a subsidiary of SAIL was initiated on 10th June, 2010, when the Cabinet Committee on Economic Affairs (CCEA) approved the financial restructuring of BSCL, and also authorised the Department of Heavy Industries and Ministry of Steel to work out operational steps for the transfer. Subsequently, SRCL was incorporated at Coimbatore, Tamil Nadu on 23rd August, 2011 for this purpose. A task force headed by Shri S. Machendranathan resolved all the issues, paving the way for transfer of the unit to SRCL.
SAIL has already initiated action towards manpower deployment and undertaken studies for capex plans for installation of tunnel kiln, mixing machine, etc., at the newly acquired refractory unit. A previously declared non-operational shaft kiln has also been brought under operation. Action is also being taken to arrange raw material for the Salem Refractory Unit through SAIL's central procurement system as in the case of SAIL Refractory Unit and other plants.
SAIL plants at Bokaro, Bhilai and Rourkela have been sourcing refractory materials from BSCL's refractory plant at Salem which produces basic grade refractories from the raw magnesite available from its captive mines at Salem. Refractory material is a critical input required for iron & steel plants based on the basic oxygen furnace route. Since SAIL's requirement of refractory material is expected to increase substantially after implementation of its modernisation & expansion plans, the merger holds immense strategic advantage for SAIL in the long run.
Burn Standard refractory unit becomes wholly-owned SAIL subsidiary
(Standing from left) Mr. S. Hanumantha Rao and Mr. D. Marandi exchanging copies of the transfer deed in the presence of (sitting in foreground, from left) Shri S. Sundareshan, Shri K.B. Shanappa, Shri Tiruchi Siva, Shri P.K. Misra, Shri C.S. Verma and Shri S. Machendranathan
