SAIL Bhilai unit to expand capacity, picks up suppliers

RAIPUR - Bhilai Steel Plant, a unit of state-owned Steel Authority of India Ltd (SAIL), will undertake four projects at an estimated cost of Rs.3,800 crore to expand its production capacity to 7 million tonnes (MT), an official statement said here Sunday.

The projects include construction of a blast furnace, a bar and rod mill, a universal rail mill and a new sinter machine.

The highest profit making unit of India’s largest public sector steel maker, which currently produces nearly 5 MT annually, last week signed deals with four consortia to complete the projects in 24-32 months.

The blast furnace will be built in 28 months at an estimated cost of Rs.1,579.14 crore. A consortium led by Italian firm Paul Wurth and Larsen and Toubro Ltd. would install the furnace, which will produce 2.8 MT of hot metal per year.

Another consortium led by Danieli & C SpA of Italy has bagged the contract for installing of a bar and rod mill at a price of Rs.406 crore. The mill will be completed in 24 months.

The universal rail mill at a cost of Rs.1,174 crore would be set up by the consortium led by German firm SMS Meer GmbH and ABB Ltd.

The Rs.639-crore new sinter machine will be supplied, erected and commissioned by L&T and Ototech.