Shri Ram Vilas Paswan, HonÔÇÖble Union Minister of Chemicals & Fertilizers and Steel launched the project for rebuilding of steel plant (erstwhile Malvika Steel) at Jagdishpur Industrial Area, Uttar Pradesh this evening in the presence of Chief Guest Shri Rahul Gandhi, HonÔÇÖble Member of Parliament & General Secretary, Indian National Congress. Also present on the occasion were Shri Jitin Prasada, HonÔÇÖble Union Minister of State for Steel, Shri PK Rastogi, Secretary (Steel), Shri SK Roongta, Chairman SAIL, Shri VK Srivastava, Managing Director Bokaro Steel Plant, senior officials of union and state govt., members of legislative assembly, etc.
Erstwhile Malvika Steel (MS) promoted by Usha Group in 1995-96 produced pig iron for about 2 years. The plant was shut down in early 1998. The promoters had envisaged the construction of a Steel Melting Shop, caster, oxygen plant, sinter plant and rolling mill. However the main facilities in operation at the time of closure included 2 x 350 cubic metres blast furnaces, 2 x 1200 tonnes per day pig casting machines and a 7.8 Mega watt captive power plant.
The assets of Malvika Steel have been taken over by SAIL at an auction held under the aegis of the HonÔÇÖble Delhi High Court for Rs 209 crores. As per the initial estimates an investment of about 300 crore would be needed. Detailed studies will be carried out to work out the product mix, etc. The plantÔÇÖs proximity to vast consuming centres in UP and strategic location would be advantageous for SAIL.
The Steel Minister said for last few years the Steel Ministry had been working on various modalities for reviving erstwhile Malvika Steel. Shri Paswan said construction will be started soon and plant is expected to start operation on 26th January 2011. Sharing his vision of reviving sick units, he said SAIL being the largest steel producer in the country has always played a vital role in nurturing several sick units like Visvesvaraya Iron and Steel Plant(VISL), Karnataka, Indian Iron & Steel Company (IISCO), West Bengal and Maharashtra Elektrosmelt Ltd (MEL), Maharashtra. Today these are making significant contributions. Talking about the steel scenario, Shri Paswan said high demand of steel in domestic sectors like infrastructure, automobiles and real estate have given a boost to steel industry in the country, and today India is the world's fifth largest producer of steel producing about 55 Million Tonnes of crude steel. He also informed the gathering about the various CSR activities of the Steel Ministry.
Shri Rahul Gandhi said for last five years he had been concerned about the revival of Malvika Steel and today his dream has come true. He thanked the Steel Minister and SAIL for taking the initiative to revive the unit and said it will usher in a new era of progress and prosperity in the region and state as a whole.
Lauding the Steel Minister, Shri Jitin Prasada, in his address said it was a historic day and a milestone for the state as the unit which had been closed will be restarted. He said there was a shortage of private sector investment in the state and this would be the largest investment by the Central govt. in UP. He thanked the Steel Ministry and SAIL for the initiative to set up the Lakhimpur Steel Processing Unit in UP and said such initiatives will boost all round development across all economic sections.
Shri P.K. Rastogi said he was happy that the plant which had been closed for last ten years is going to be revived. He lauded the Steel Minister for spearheading CSR initiatives and setting up Steel Processing Units in the country.
Shri SK Roongta said today is a historic day for SAIL as it has been provided an opportunity to rebuild erstwhile Malvika Steel which has been closed for 10 years. On the occasion Chairman SAIL talked about the crucial role of Chiria Mines as additional iron ore would be needed for the success of the companyÔÇÖs expansion plan. He also requested the State govtÔÇÖs intervention for the projectsÔÇÖ requirement of electricity, water, etc. Shri Roongta assured that SAIL would not only reconstruct the plant but also play the role of a model corporate citizen.
Earlier during the day Shri Paswan inaugurated SAILÔÇÖs first Steel Processing Unit at Betiah, Bihar. The SPU will start initially with commissioning of Corrugation facility producing corrugated sheets.
Steel Minister launches project for rebuilding of Steel plant (erstwhile Malvika Steel ) at UP
Photo caption: Shri Ram Vilas Paswan, HonÔÇÖble Union Minister of Chemicals & Fertilizers and Steel ((1st from left), Shri Jitin Prasada, HonÔÇÖble Union Minister of State for Steel and Shri SK Roongta, Chairman SAIL (3rd & 4th from left) handing over a momento to Shri Rahul Gandhi, HonÔÇÖble Member of Parliament & General Secretary, Indian National Congress at the project for rebuilding of steel plant function at Jagdishpur today
