STATE-owned Maharatna PSU major Steel Authority of India (SAIL) will develop four greenfield steel plants in the country as part of the government’s ambitious plan of developing steel plants of six mtpa each through the SPV route. The entire projects will cost $24 billion, said a media report.
Decks have been...cleared for setting up of the plants and SAIL and the Chhattisgarh government will sign a pact for one of these plants next month. Prime Minister Narendra Modi will be present during the signing of the pact. Modi is visiting the state next month.
The idea was mooted during the UPA-II government in which PSU miner NMDC, the lead partner and minority stakeholder, along with state industrial development corporations would create the necessary infrastructure for these units, including the acquisition of land.
Once the infrastructure is ready, the project would be handed over to potential investors through a global tender for setting up and running the plants.
However, the project didn’t take off due to slow progress on the part of NMDC. Last November, the government decided to give the job of infrastructure creation to SAIL and RINL, besides NMDC. The idea was to fast-track the setting up of four mega steel plants in Chhattisgarh, Odisha, Jharkhand and Karnataka.
SAIL was given the task to work for the Chhattisgarh SPV, RINL for the Odisha SPV while NMDC for the remaining two. The state-run firms have also been given the option of staying put on the project.
SAIL started working steadily and after a series of discussions, Dilli-milli area in the Bastar district of Chhattisgarh was chosen as the location for the plant.
SAIL chairman CS Verma said the Dilli-milli facility will have 6 mtpa capacity. SAIL would be the lead investor, but there will be a third partner.