Steel Authority of India (Sail) has put land issues ahead of any step towards making Sindri project a reality. The Maharatna steel major made it clear — no investment until all the land is allotted.
“We have in-principle approval from the Government on Sindri project but land has not been allotted yet. We will invest only when land is available to us, clearly and completely. Final approval on this is still awaited,” said SAIl chairman CS Verma on Saturday.
SAIl is looking to establish a Rs 35,000-crore steel-cum-fertilisers complex on the closed premises of the Fertilizer Corporation of India, after the Board of Industrial & Financial Restructuring (BIFR) approved the revival proposal with the steel behemoth. SAIl has plans to set up a 5.6 million tonne (MT) steel plant along with a 1.15 MT urea plant and 1,000-MW power plant for captive use at Sindri.
Counting the huge investment expected in the entire revival, Verma put estimates at Rs 25,000 crore for the steel plant and Rs 4,000-5,000 crore for the power plant.
He brushed aside the moratorium put in by the Central Pollution Control Board (CPCB) for the area, citing heavy emissions.
“We are committed to adhere to guidelines and norms for environmental protection. I think the ban is for industries crossing pollution norms and not for those who are within the limit,” the chairman pointed out.
Verma said SAIl was looking to add 2 MT of steel capacity every year through its new measures by the end of 2013-14. “SAIl is setting up the largest blast furnace of the country in a month and new furnaces at Burnpur and Bhilai will be operational by the end of 2013.”
The company has kept Rs 39,131 crore for its expansion plan, Rs 7,039 crore for value addition and product mix improvement, Rs 3,509 crore for technical upgrade and modernisation and Rs 6,909 crore under sustenance and environment. This totals Rs 56,588 crore for modernisation and expansion.
Verma expressed hope that India would be at second position in steel production, after China, by 2020.
He also admitted that the industry was passing through a critical phase the world over and in India as well, with just 1.2 per cent and 4.3 per cent growth, respectively. “This is not a happy situation for us. There is global slowdown, even though impact on India is partial due to its faster growth rate. I hope if India grows with 8-9 per cent certainly things would improve,” said CS Verma, counting on lower grade coal available back home and leaping prices of the imported fuel besides lower consumer base for the sluggish pace.
When asked about the curb on iron ore export, he said the Government has taken fiscal measures by imposing duty as much as 30 per cent to discourage trade. “Policy is to promote value addition here and export only lumps and palettes. There is zero export duty on lumps. Why should we export our iron ore,” added Verma.