Steel Authority of India Limited (SAIL) has signed a memorandum of understanding with the Government of Kerala for revival of the loss-making Steel Complex Limited (SCL), a 50,000 tonnes per annum company producing continuous cast billets which is used by re-rollers for producing TMT bars for the construction industry. The MoU was signed here today by SAIL Director (Personnel) Mr. G. Ojha and Mr. P.H. Kurien, Secretary, Industries (Investment Promotion) Department, Government of Kerala, in the presence of Union Minister for Chemicals & Fertilisers and Steel Mr. Ram Vilas Paswan, Kerala Chief Minister Mr. V.S. Achuthanandan, Principal Secretary to the Prime Minister Mr. T.K.A. Nair, Secretary (Steel), Government of India Mr. R.S. Pandey, Kerala Minister for Industries & Commerce Mr Elamaram Kareem and SAIL Chairman Mr. S.K. Roongta.
Under the MoU, SAIL will acquire 50% shares of SCL, which is a subsidiary of the Kerala State Industrial Corporation Limited, and the company will be operated as a joint venture between SAIL and the Government of Kerala. It is envisaged that the JV company will revamp the existing steel making and continuous casting facilities existing in SCL.
Addressing the gathering after laying the foundation stone of a new rolling mill under the revamp plan, Union Steel Minister Mr. Ram Vilas Paswan said that the joint venture would be beneficial for both SAIL and SCL. Depending on the financial viability, a decision to set up a new 50,000 tonnes per annum rolling mill producing Fe 415-grade TMT bars at the existing SCL plant at Kozhikode would be taken.
The revival plan for SCL will also provide a good opportunity for the largest producer of steel in India, i.e., SAIL, to develop its already existing base in Kerala and improve its market share by meeting the growing demand of TMT bars in the state.
A joint working group of nominees from SAIL and the Government of Kerala has been constituted to operationalise the plans.
