Maharatna company Steel Authority of India (SAIL) today said it along with Kerala government will invest Rs 45 crore to set up a 65,000 tonnes per annum capacity new rolling mill at Steel Complex, Kozhikode to produce high-grade steel bars.
The Joint Venture Company (SAIL-SCL) will set up a "new rolling mill of 65,000 tonnes per annum capacity for producing high grade TMT bars at an estimated investment of Rs 45 crore," the company said in a statement here.
SAIL, which formally bought Kerala government's 50% stake in SCL and now manages its operations, said, "SAIL -SCL Limited, the joint venture company resulting from the acquisition, will work towards the revival of SCL."
The company had inked a pact with Kerala Government in May 2008 for revival of SCL, owned by the state government.
"...Subsequent to the fulfilment of conditions of the agreement, the JV became operational in December 2010. Operations of the JV will be synergised with SAIL’s core strengths by installation of billet conversion facility, raw material tie-ups and marketing of SCL products by SAIL," the statement said.
The JV aims to tackle issues such as shortage of working capital and non-availability of good quality scrap by ensuring uninterrupted supply of scrap to maintain efficiency of operations and adding value to its products by converting billets into TMT bars, SAIL said.
The possibility of marketing SCL products by harnessing SAIL’s nationwide dealer network is being explored, it added.
SAIL-SCL at present has a capacity to produce 55,000 tonnes of liquid steel per annum through the electric arc furnace route and 50,000 tonnes of concast billets per year.
