The Hon'ble Union Minister for Chemicals & Fertilisers and Steel, Shri Ram Vilas Paswan inaugurated the Rs 11,262 crore expansion programme for Steel Authority of India Ltd's flagship steel plant, Bhilai on 9th Feb '08. Nearly two decades after its last expansion to 4 MT which brought with it the Plate Mill as the country's only mill producing wide and heavy steel plates, Bhilai today entered the third phase of expansion in capacities - one that will strengthen its steel-making capabilities and introduce new products into its basket. As an integral part of SAIL's growth plan that envisages capacity augmentation to 26 MT by 2010, the Expansion & Modernisation plan of Bhilai will enhance the Plant's hot metal capacity from 4.08 to 7.5 MT while the crude steel capacity will go up to 7 MT from 3.92 MT. The saleable steel capacity will go up from 3.15 MT to 6.53 MT.
Present on the occasion as Chief Guest was Chief Minister of Chhattisgarh, Dr Raman Singh. Hon'ble Speaker, Chhattisgarh State Assembly, Shri Prem Prakash Pandey, Member of Parliament from Durg, Shri Tarachand Sahu, Secretary Fertilisers & Steel, Government of India, Dr JS Sarma, Additional Secretary & Financial Advisor to the Ministry of Steel, Shri BS Meena, Chairman SAIL, Shri SK Roongta, MD, Bhilai Steel Plant, Shri R Ramaraju were the other dignitaries present on this important and landmark event for SAIL.
Shri Paswan who also addressed members of the local and national media at Bhilai Niwas before proceeding to the site of inauguration to address a large gathering comprising of members of the Bhilai collective, said the domestic steel industry has in recent times been experiencing a growth never witnessed before. Steel consumption in the country is increasing by about 12% while the domestic production capacity is growing by about 7%, said Shri Paswan adding that the government is keen on giving a level playing field to steel industries both in the public and private sector to fill this gap between production and consumption. While the per capita consumption of steel in the country leaves much to be desired specially when compared to China, what is encouraging is that India is steadily climbing up the ladder as a steel producing country, Shri Paswan said. Today it is the fifth largest producer of steel. The government is putting in place plans to increase capacities so that by 2015, India becomes the second largest producer of steel in the world, he said.
The last four to five years have also witnessed the revitalisation of SAIL, Shri Paswan said. The company that is posting handsome profits now, is investing about Rs 51,000 crore in expanding capacities and modernising its facilities. This ambitious plan includes an investment of Rs 11,262 crores in Bhilai to increase the hot metal capacity from 4.6 MT to 7.5 MT, he said.
The Bhilai Plant that entered its 50th year of production since the first metal was tapped in 1959 occupies a special place in India steel industry charts, Shri Paswan said, adding that a function was organised by the Ministry of Steel and SAIL in New Delhi on 4th Feb '08 to mark the beginning of the golden jubilee celebrations. SAIL is playing an important part in nation's development, he said citing the example of Indian Railways that is dependent on SAIL for sourcing its entire requirement for steel. Referring to Bhilai as the Jewel in SAIL's crown, meets the entire requirement of rails, he said. It has won the prestigious Prime Minister's Trophy for best integrated steel plant in the country seven times out of the 13 times that it has been awarded so far, he said.
Referring to the expansion and modernisation plans, Shri Paswan said Bhilai and SAIL have to achieve best techno-economic parameters to compare with world class standards. Public sector steel companies are no less when it comes to performance, he said, adding that any delay in project execution is going to be costly. It must therefore be ensured that there is no time overrun, he said.
Interacting with members of the media, Shri Paswan also expressed his views about the raw material situation and steps that SAIL has taken to strengthen and consolidate its position as a leading steel producer. While the company is teaming up with NMDC and RINL for setting up new steel plants in ore rich states, it is also playing a key role in formation of special purpose vehicle (SPVs) with other key PSUs like CIL, NTPC, NMDC etc., he said.
The ministry is also keen on intensifying R & D activities in steel making technology in the country. About Rs 8000 crore that is lying in Steel Development Fund would be utilised for R & D. With deposits close to 25 billion tonnes, there is no dearth of iron ore in the country, he said, adding that the ministry is engaged in introducing new technology to utilise lower grade iron ore available in the country. Referring to the mining policy, he said while states reserve the right to allot mines, some changes need to be made to ensure that there is no improper distribution of iron ore among states.
In his address, Chief Minister, Dr Raman Singh expressed confidence in Bhilai's capabilities to perform beyond capacity. It has been performing beyond rated capacity for many years and I am sure that when its capacity is increased to 7.5 MT after the expansion plan, Bhilai would end up producing as much as 8.5 MT. Similar sentiments were expressed by the Union Minister. All speakers congratulated Bhilai for entering its golden jubilee year. Shri Paswan announced a reward of Rs 2000 for each employee of Bhilai Steel Plant for their performance.
Addressing the gathering, Secretary Fertilisers & Steel, Dr JS Sarma acknowledged Bhilai's contribution to the industry and nation. Hailing the Bhilai work culture, he said it is vital that the expansion projects are implemented on time. In his address, Chairman SAIL, Shri Roongta also hailed Bhilai's excellent work culture and acknowledged Bhilai's contribution to lift the performance of the company. He thanked the Union Steel Minister for his guidance and support for SAIL's expansion plans. Shri Roongta also thanked the Chief Minister, Dr Raman Singh for the support that the State Govt has extended in the company's efforts to secure Rowghat iron ore mines in Bastar area of Chhattisgarh for Bhilai Steel Plant. The return on capital employed is the highest for BHilai among all steel plants in the country, Shri Roongta said, expressing faith that Bhilai would complete its expansion and modernisation programme on time.
Today when global steel leaders are at our doorstep, SAIL's Corporate Plan 2010 drawn out carefully to exploit each plant's strengths is therefore aimed at securing Bhilai's future in a fiercely competitive market scenario. The Expansion & Modernisation programme of Bhilai that the Union Minister, Shri Paswan inaugurated will see the erection of a new 7 metre tall coke oven battery retrofitted with state of the art pollution control equipment and a new 4060 cu. Metre blast furnace. During the implementation of Corporate Plan, Bhilai will also modernise and re-build some of its older coke oven batteries and blast furnaces, thus strengthening the Plant's basic coke making, iron and steel making capabilities and replacing Russian machinery and equipment that have clocked nearly five decades of round the clock operation.
State of the art technology is being brought in while phasing out old and energy intensive technology. Under the Corporate Plan 2010, Bhilai's SMS I with energy intensive twin hearth furnaces will be phased out giving place to a new steel melting shop ensuring that Bhilai produces 100% steel through the basic oxygen and continuous casting route. The new SMS III will have three 160 T convertors, two 6-strand billet casters, a 6 Strand Bloom-cum-Billet Caster and a 3 Strand Beam Blank Caster.
While Bhilai's capabilities in the long product category will be further strengthened with a 0.9 MT new bar & rod mill and a 1.2 MT Universal Beam Mill, which will produce beams upto 1 metre depth and will be the only one of its kind in India. The Corporate Plan will also ensure that Bhilai's rail-making capabilities remain the best. A new 1.2 MT Universal Rail Mill is being installed. It is worth mentioning that Bhilai produces the 'cleanest rail steel' in the world with hydrogen content less than 1.5 ppm.
Along with additional new facilities, existing facilities are also being upgraded to enable higher production of value added steel with overall improvement in productivity. Bhilai's Raw Material Handling facilities is being strengthened with a new coal handling and ore handling plant. A new compressed air station, a new 2 x 1250 tonnes per day Oxygen Plant and facilities for power distribution are being introduced to strengthen services & auxiliaries zone.
The first metal flowed out of the blast furnace on 4th of Feb 1959. The flagship unit of SAIL, adjudged as the best integrated steel plant in the country and honoured with the Prime Minister's Trophy seven times, has consistently been making profits for two decades now, including the last recessionary period when other steel makers were running into losses. In the last fiscal year 2006-07, Bhilai gave a profit of Rs 4271 crores. In 2006-07, Bhilai earned the distinction of having earned the maximum profit of Rs 4271 crores.
Producer of both long and flat steel, Bhilai is the sole supplier of world class rails to the Indian Railways, its rails laid throughout the length and breadth of our country as well as in eight other countries. Bhilai also manufactures plates, light and heavy structurals, wire rods and semis. The Plant specialises in the production of high strength UTS 90 rails, high tensile and boiler quality plates, TMT bars and wire rods, electrode quality wire rods, heavy structurals and merchant products including almost the entire range of TMT bars with high corrosion and earthquake resistant properties.
With capabilities enhanced to produce rails in rolled lengths of 80 metre and welded panels up to 260 metre from its state of the art Long Rail Complex commissioned in June 2004 by the Union Minister, Shri Ram Vilas Paswan himself, Bhilai has become the first in the country to produce long rails for the Indian Railways in 130 m and 260 m lengths. The Plant has supplied DMR grade special plates for manufacturing Indian Navy's warship, special steel for the J & K rail link and a number of important projects of critical importance. Shri Paswan visited Bhilai again in November 2006 to inaugurate some modernisation and addition schemes in Bhilai including the modernised B strand of Wire Rod Mill.