After long deliberations and negotiations, SAIl has received Stage-I approval for revival of the defunct Sindri fertiliser plant.The Maharatna is eyeing setting up a 5.6 million tonne steel plant at a cost of Rs 25,000 crore after the Centre gives it final approval.
SAIl chairman CS Verma on Thursday told mediapersons that the company had no complaints as far as changing provisions in light of the land Acquisition, Rehabilitation and Resettlement Bill, 2013 were concerned.
“The Bill passed would be a win-win situation for both land losers and gainers. It will fetch good compensation for land owners. As far as its effect on us is concerned, we have land with us and for expansion and others we don’t need much land,” said Verma.
However, Union Rural Development Minister Jairam Ramesh has rapped PSUs and other companies for acquiring more land their actual need and not utilising it for long.
“Governments, PSUs and private companies have been misusing 119 years old land Acquisition Act- 1894 under urgency clauses and acquiring more land that required.
We have made provision in the new Bill that if a piece of land is left unutilised for five years then it would be returned to original owners or to the land bank of the Government. Also, the land use cannot be changed at any cost. The provision is also applicable from retrospective effect,” said Ramesh in a separate meeting with reporters.
Verma, while talking about global steel market, stressed over the depressing situation at world level but also outlined the future plans with SAIl as far as modernization is concerned.
“Steel industry is passing through a critical phase globally. In 2012, there was 1.2 BT capacity for production but it remained lower due to no demand. Capacity utilization of global steel industry is around 80 per cent. Similar situation exists in India. However, India fares better by achieving 5.6 GDP growth rate and by producing 33.4 million tons of steel in 2012,” said the Chairman.
He also added that SAIl has modernisation plans of Rs 72,000 crore in the years to come. A new 2.5 million ton blast furnace has already started production at Rourkela Steel Plant and a similar blast furnace will start operation at ISP, Burnpur by December 2013.
Both these plants have installed new Coke Oven Batteries and Sinter Plants. A new Continuous Caster has started production at RSP. As per the Vision 2025 document, SAIl will produce 50 million ton of hot metal by 2025 against the current capacity of 14 MT.
For this production, it needs 90 million tons of iron ore which can be sourced from its captive iron ore mines. The company would also spent Rs 6000 crore at the modernization at Bokaro Steel plant and Rs 10,000 crore for the expansion of Tarsa mine in Jharkhand.
Verma also expressed concern over prime hard quality coal. Though some coking coal is supplied by BCCl and CCl, most of prime coking coals are imported. “We are in a process of acquiring 4-5 coal mines outside the country for coking coal need,” he said.
In first quarter of current financial year, SAIl’s production has increased 6 per cent to 3.20 million tons and sales has increased by 5 per cent to 2.62 million tons.
Verma also expressed happiness over SAIl supplying 26,000 tons of steel for INS Vikrant Warship resulting in large scale import substitution. SAIl targets to export 8,000 tons of special steel compared to 4,000 tons achieved last year.