The long-awaited modernisation and expansion of Rourkela Steel Plant approved by Steel Authority of India a year-ago was yet to take off causing cost escalation and suspicion among trade union leaders.
SAIL had approved in-principle the proposal for RSP modernisation and capacity expansion at an estimated cost of Rs 9,869 crores in May 2007.
Even six months after the announcement, preliminary tender works had not been completed and cost of the project has gone up to Rs 12,000 crore as per present estimation, a senior RSP official told PTI.
The foundation stone of the project was laid by Steel Minister Ramvilas Paswan, announcing that the modernisation and expansion of RSP would be completed by 2010.
The objectives of expansion include increase in production of crude steel through latest technology in order to meet the productivity level of international standards, improvement in quality of products, production of more value added products and reduction of energy consumption.
The modernisation, if completed by 2012, would double RSP's capacity to 4.5 million tonnes from its present capacity of two million tonnes, the source said.
Various trade union leaders have also expressed concern over delay of the project. Hind Mazdoor Sabha (HMS), a major trade union body in Rourkela, while expressing surprise over the delay said it is just to help the upcoming private steel industries.
