The Rs 17,265-crore modernisation and expansion plan of the Bhilai Steel Plant (BSP) has entered into the final phase with the flagship of Steel Authority of India (SAIL) signing contracts for four major projects.
“With the signing of contract for the four projects, the major work on the expansion plan has been awarded,” a senior official of the company told Business Standard. Now, only small work will be left for which the company will later invite bids.
The four projects will be completed with an estimated cost of Rs 3,800 crore. The projects, to be completed in 24 to 32 months, include Blast Furnace, Bar and Rod Mill, Universal Rail Mill and new sinter machine.
“The modernisation and expansion plan of the SAIL highest profit making entity was launched in February 2008. It is scheduled to be completed by 2012. At the onset, the project cost was Rs 11,262 crore. It has escalated to Rs 17,265 crore,” the official said.
On completion of the expansion plan, the production of the BSP, about 40 km from the Chhattisgarh capital, would enhance to 7 Million Tonnes (MT) per annum from present capacity of 5.1 MT per annum.
According to officials, the Consortium of M/s Paul Wurth, Italy (as leader), M/s Paul Wurth India Pvt. Ltd. and M/s Larsen & Toubro Ltd will install the Blast Furnace, project at an estimated cost of Rs 1,579.14 crore in 28 months. The Blast Furnace with the state of the art technology will produce 2.8 MT of hot metal per year.
The consortium of M/s Danieli & C SpA, Italy (as leader), M/s Danieli India Ltd., Kolkata and M/s Beekay Engineering Corporation, Bhilai bagged the contract for installing of Bar and Rod Mill at a contract price of Rs 406 crore in 24 months.
More From This Section
The universal rail mill with an estimated cost of Rs 1,174 crore will be set up by the Consortium of M/s SMS Meer GmbH, Germany (as leader), M/s SMS Meer India Projects Pvt. Ltd., Kolkata and M/s ABB Ltd., Bangalore. The project is likely to be completed in 32 months.
The mill will have all the modern features like in-line rail head hardening, on-line non-destructive testing for ensuring production of world class rails, the officials said. The Rs 639-crore new sinter machine will be supplied, erected and commissioned by M/s L&T and M/s Ototech.