Will use patented Japanese technology.
Steel Authority of India (SAIL) is likely to set up an iron nugget plant with Japan’s Kobe Steel at its unit in Durgapur, the Alloy Steel Plant.
The iron nugget plant, a patented technology from Kobe Steel, will cost around Rs 5,000 crore for a module of 500,000 tonnes.
The plant will use low-grade iron ore to produce highly pure iron nuggets, which is used as feedstock in electric arc furnaces.
“The first module will be 500,000 tonnes,” SAIL Chairman C S Verma said, while adding the location was likely to be Alloy Steel Plant.
If the project materialises in Bengal, it would imply additional investment from SAIL. As part of its corporate plan, which is aimed at doubling capacity, Bengal accounts for almost two-fifths of SAIL’s Rs 53,000-crore investment.
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“The joint venture with Kobe will be finalised over the next two months,” Verma said.
“The idea is to bring in new technology,” steel minister Virbhadra Singh said.
A joint venture with Posco is also in the offing. The plant, which would come up at Bokaro Steel Plant’s land, will use Finex technology. All units under SAIL have surplus land. “The project will be the second outside South Korea to use Finex technology,” the minister said.
The detailed project report will be ready by mid-November for the three million tonne plant, following which the joint venture agreement would be signed. The investment would be Rs 12,000-15,000 crore.
Discussions are underway on the equity participation. “Posco wants majority,” the steel minister said. “It could be a 49:51 joint venture or an equal joint venture.”