Durgapur Steel eyes 2mn tonnes target

Durgapur Steel Plant (DSP) is targeting a 10 per cent increase in production in 2005-06 and has pegged 2.15 million tonnes of hot metal production against 2.02 million tonnes in 2004-05.

Based on hot metal production targets, DSP intends to produce around 2 million tonnes of crude steel in 2005-06 which in 2004-05 stood at 1.83 million tonnes. This would therefore translate into a total saleable steel production of 1.85 million tonnes vis-à-vis 1.63 million tonnes last year.

DSP will also be investing Rs 2,800 crore in the next seven years from the present 1.86 million tonne to 3 million tonne, as part of Steel Authority of India Ltd's (SAIL) modernisation and capacity expansion programme.

"DSP already had a fourth blast furnace which was shut down sometimes back. The expansion plan includes firing the fourth blast furnace this year," explained officials from DSP.

The investment would help DSP to route almost its entire crude steel production through the continuous casting route, reduce the cost of production and improve the product mix.

At present, the plant's product mix has over 50 per cent semis, which badly affect its net sales realisation. While the installation of bloom caster, two ladle furnaces and a reheating furnace were already underway, the plant also plans to setup bar and rod mill and medium structural mill to enhance its finished component in the product mix.

Meanwhile, DSP is heading towards a record net profit this year after notching up Rs. 475 crore in the first nine months. The plant made a profit of Rs 81 crore in the previous year.

A senior DSP official explained that though the plant has exhibited marginal growth rates in all the major areas of production as yet, it is expected to better the performance in the remaining two months.

Official sources said that the plant has laid special emphasis on the special steel this year and has produced around 2 lakh tonne in the first nine months achieving a growth of over 38 percent. The plant has produced 1,21,329 tonne in the corresponding period of the previous year. Sources said that DSP has developed S-profile locomotive wheels for the Indian Railways, which were presently under field trials.

The S-profile wheels have better heat dissipation during braking and can be used at high speeds too, the same officials pointed out.

Sources further added that the wheel and axle plant of DSP would be supplying over 60,000 wheels to the Indian Railways, which would be the best performance they have achieved as yet. The wheel and axle plant has shown a growth of over 43 percent in the first ten months of the current year over last year.