In line with its strategy to meet the market demand for tailor-made steel products and to help increase per capita steel consumption in rural areas, Steel Authority of India Limited (SAIL) is in the process of setting up Steel Processing Units (SPUs) in locations across the country where it does not have any production facility. Union Minister for Chemicals & Fertilisers and Steel Shri Ram Vilas Paswan laid the foundation stone of the company's eighth SPU at village Behjam, 120 kms from Lucknow, in Lakhimpur Kheri district of Uttar Pradesh this afternoon. Present on the occasion were Union Minister of State for Steel Shri Jitin Prasada, MP (Kheri) Shri Ravi Prakash Verma, Secretary (Steel) Shri P.K.Rastogi, SAIL Chairman Shri S.K. Roongta, Managing Director, Rourkela Steel Plant, Shri S.N. Singh, senior officials of union and state govt., members of legislative assembly, etc.
The SPU to be set up at a cost of Rs 85 crore will have an installed capacity of 1 lakh tonnes per annum. The Lakhimpur Kheri SPU will produce TMT bars in 8 to 25 mm diameter from input materials sourced from SAIL's integrated steel plants. Expected to be completed in 18 months, the unit will have a TMT bar mill with 60,000 tonnes per annum (tpa) capacity for TMT bars of 8 to 12 mm diameter and 40, 000 tpa capacity for sizes 16 to 25 mm
Commending Shri Prasada for taking the initiative and giving shape to the idea of the Lakhimpur Kheri SPU within a very short span of 1 year, Mr Paswan said the need of the hour was development and the setting up of this project will give a boost to several ancillary and small scale industries in the region. Elaborating on his vision of SPUs which was close to his heart, Shri Paswan said states were chosen where public sector steel plants are not located so as to make up for the gap in supply to the extent possible. He said consumption of steel has to increase and good quality steel has to reach the common man. Shri Paswan asked SAIL to enhance the project cost to Rs 100 Crore. Complimenting SAIL for giving shape to his vision, Mr Paswan also took the opportunity to applaud the SAIL for contributing 2 % of its profits towards CSR initiatives.
Shri Jitin Prasada on his part thanked the Steel Minister and SAIL for the support for making the project happen. Such initiatives will boost all round development, Mr Prasada stressed. He underlined that the concept of SPUs is aimed at ensuring that the development initiatives of the Government of India reach the nook and corner of the country. SAIL's efforts in organizing several medical camps including flood relief camps in the state was also lauded by him.
Articulating the same vision, Shri P.K. Rastogi said SPUs will help to make available quality steel at affordable prices to consumers in the villages and will also contribute to the prosperity of the region where they are located by way of catalyzing growth of ancillary industries
Shri S.K. Roongta spoke about the potential of SPUs to generate a variety of economic activities. With a market presence of 26 % in the state, SAIL is planning to add an additional 44 dealers to its existing network of 267 dealers to cater to one of India's largest state which accounts for 11 % of the country's total steel consumption. Elaborating about the company's marketing network which has a presence in all the districts of the country, Mr Roongta said SAIL has 4 Branch sales offices in UP spread across the four corners of the state, 5 warehouses equipped with mechanized handling systems and 1 customer contact office. The company's sales through its state dealers accounted for 56,000 Tonnes in January- April' 09.
SAIL has decided to set up 11 steel processing units in 7 states where it does not have any production facility, the foundation stones of which have been laid at Betiah, Mahnar and Gaya in Bihar; Gwalior, Ujjain and Hoshangabad in Madhya Pradesh and Pulwama in Jammu & Kashmir. The SPUs will use products like hot rolled coils, billets and TMT bars produced by SAIL's main integrated steel plants to manufacture a wide variety of steel items that can be utilised by the common man.
Steel Minister lays foundation stone for SAIL's 8th SPU in UP
Photo caption: Shri Ram Vilas Paswan (centre) at the Lakhimpur SPU foundation laying today. (From right) Shri SK Roongta, Shri PK Rastogi and Shri Jitin Prasada.
