The profit recorded by Steel Authority of India’s flagship Bhilai Steel Plant (BSP) had fell drastically during the previous financial year (2015-16) due to slow growth in steel demand and falling prices on account of global steel glut.
Going by the latest Central government data, BSP’s profit was Rs2085 crore in 2013-14, Rs2232 crores in 2014-15 and Rs405 crores in 2015-16.
The public sector steel manufacturing industries under Steel Authority of India limited (SAIl) and Rashtriya Ispat Nigam limited (RINl) are affected by factors like slow growth in steel demand, falling prices on account of global steel glut leading to import of steel at very low prices resulting in surge in steel imports during 2014-15 and 2015-16, the Central Government has informed.
Notably, commercial production of world class 130 metre long rails from the new Universal Rail Mill of Bhilai Steel Plant began on Tuesday last.
The 130-meter rail rolled at URM would be World’s longest rail in a single piece. The hot trials for rolling and straightening of rails were underway and after seeking all required clearances from third party inspection agency M/s RITES, commercial production from URM has begun.Despatch of the first rake from this new facility would take place in about two days, a BSP press release informed.
The entire team of M/S SMS MEER Germany, M/s ABB and M/S SMS MEER India and the Projects team of Bhilai Steel Plant along with SR Babu, DGM worked relentlessly to achieve this significant milestone.
M Ravi, Chief Executive Officer, Bhilai Steel Plant congratulated the entire team on the achievement of this major milestone.
The new URM established at a cost of about Rs1200 Cr. is part of SAIl-Bhilai Steel Plant’s modernization programme that would scale up capacity to 7 million tonnes per annum (mtpa).