RSP in Rs 2000 cr capacity spread

The Rourkela Steel Plant (RSP), under the banner of Steel Authority of India (SAIL), proposes to increase its capacity by 50 per cent from the present two million tonne to three million tonne at an estimated investment of over Rs 2000 crore.

The capacity build up of RSP is in tune with the SAIL plan to command a capacity of 20 million tonne by 2011-12 as against only 13 million tonne now. For this, SAIL, having a market share of about 36 per cent in the country, has chalked out a massive Rs 25,000 crore investment plan.

The hot metal and saleable steel capacities of RSP will go up from two million tonne to three million tonne and from 1.67 million tonne to 2.8 million, tonne respectively.

The capacity build up programme veers around installation of a new state-of-the-art 2000 cube metre blast furnace by 2009-10 which is estimated to cost anything between Rs 1,200 crore to 1,500 crore.

These plans are being taken forward in consultation with SAIL's corporate headquarters, says Sanat Mishra, managing director of RSP. He said, of the total projected investment Rs 700 to 800 crore will be invested within the next four years towards upgradation and expansion efforts.

Mishra pointed out that the recent boom in the steel market coupled with some corrective measures by the plant management have brought about a turnaround in the company's fortunes.

RSP, whose future was in doubt not so long ago due to continuous losses, has earned a net profit of Rs 55 crore in the first quarter of the current fiscal. For the first time the plant has posted net profit ever since its construction in late 1950s with German collaboration.