Prime Minister Dr. Manmohan Singh today laid the foundation stone for the Rs. 1,902-crore modernisation & expansion project of Salem Steel Plant (SSP) of Steel Authority of India Limited (SAIL) by unveiling a plaque before a 30,000-strong gathering of the people of Salem and visiting dignitaries. UPA Chairperson Smt. Sonia Gandhi unveiled a sculpture, Spiralling Rhythm made with Salem Steel depicting the growth of SAIL, at the venue on the occasion.
Smt. Indira Gandhi, former Prime Minister of India, had laid the foundation stone of SSP on 16th September 1970. Her dream that it would grow into a fully integrated steel plant becomes a reality today. Among other dignitaries present on the historic occasion were Union Minister for Chemicals & Fertilisers and Steel Shri Ram Vilas Paswan, Union Minister for Finance Shri P. Chidambaram, Union Minister for Shipping, Road Transport & Highways Shri T.R. Balu, Union Minister for Health & Family Welfare Shri Ambumani Ramadoss, Union Minister for Panchayati Raj Development Shri Mani Shankar Aiyar, Union Minister for Communication & Information Technology Shri A. Raja, Salem Member of Parliament K.V. Thangkabalu, among others. Union Minister of State for Steel Shri Jitin Prasada welcomed the dignitaries on the occasion. Senior Steel Ministry and state government officials were also present on the occasion.
SSP's modernisation & expansion programme will make it a fully integrated steel plant and endow it with the capacity to produce 180,000 tonnes per annum (tpa) of stainless steel slabs. With steel making facilities including an electric arc furnace, ladle furnace, refining unit, etc., being set up as part of the project, the plant will no longer have to depend upon sourcing slabs for rolling from external sources. The expansion & modernization programme will also enhance SSP's capacity for producing cold rolled stainless steel items from the present 65,000 tpa to 146,000 tpa with latest technology and modern facilities being procured from reputed international suppliers.
The project will be implemented through 19 major packages and 20 auxilliary packages. Contracts for all the major packages have been concluded. M/s Dasturco is consultant-cum-project manager for SSP's expansion & modernization programme which is expected to be completed in the year 2010.
Speaking on the occasion, the Prime Minister commended SAIL which is observing its 50th year of production, for "playing a vital role in the country's march towards industrialization and self-reliance". He said the modernization & expansion of SSP " which is designed to produce high quality stainless steel", will help make it a truly integrated steel plant by incorporating steel melting and other facilities. The project will also help to generate employment in and around Salem, he said. The Prime Minister reiterated that by 2015 India would emerge as the second largest steel producer in the world if steel production was increased to meet the rising steel demand. "Our steel companies have to operate on the frontiers of technology, material excellence and high productivity," he stated, to fulfill this goal.
"It is a very, very proud moment for all of us, heralding an important milestone in the turnaround of SSP," said Smt. Sonia Gandhi in her address. "Salem has maintained a sterling reputation in terms of assured quality," she maintained, to great cheering from the audience. Praising the role of profitable public sector companies in fulfilling social needs and obligations, the UPA Chairperson emphasised the excellence of SAIL's efforts to bring development to backward regions of the country. She congratulated SAIL for "its numerous contributions to the Indian economy," while applauding the company's initiatives of appointing marketing outlets in all the districts of the country and setting up Steel Processing Units in 8 states.
Shri Paswan, in his address, spoke of the capacity expansion plans of the PSUs under the Ministry of Steel, including SAIL, RINL and NMDC to meet the growing steel demand of the country and the steel industry's efforts to contain prices. He hoped that the Tamil Nadu government would allocate the Kanjamalai iron ore mines to SAIL since "these are at the core of the current expansion plan of Salem Steel Plant".
Mr. S.K. Roongta, Chairman, SAIL, while thanking the Prime Minister, the UPA Chairperson and other Cabinet ministers for their presence on the occasion, thanked the Tamil Nadu government for all support extended to SSP to be competitive.
This is the third foundation stone laid by the Prime Minister for modernisation & expansion of SAIL plants. The Rs. 9,600-crore greenfield modernisation & expansion programme of IISCO Steel Plant at Burnpur in West Bengal was laid on 24th December 2006, followed by the Rs. 11,000-crore modernisation & expansion project of Bokaro Steel Plant on 22nd April 2008. This indicates the keenness of the Government to enhance the steel making capacity of the country encouraging PSUs like SAIL.
SAIL is presently implementing its mega modernisation & expansion plan to almost double its hot metal production capacity to 26 million tonnes by the next four years
