Business Standard

Tata Steel Kalinganagar plant aims to sell 1.5 MT HR coils in FY 17

The greenfield project is now undergoing the process of synchronisation and stabilisation of various units and will attain 50% of the installed capacity by this fiscal-end

Capacity utilisation falls for RINL, JSW Steel and JSPL

Dillip Satapathy Bhubaneswar
Tata Steel’s Kalinganagar steel project in Odisha targets to sell 1.5 million tonne of hot rolled (HR) coils in FY17, the first year of its commercial operation.

The greenfield project, which went on stream in November, 2015, is now undergoing the process of synchronisation and stabilisation of various units and will attain 50 per cent of the installed capacity by the end of this fiscal.

Thereafter, the production will be stepped up to reach the first phase full capacity of 3 million tonne in the next fiscal, sources said.

At Kalinganagar, the company will manufacture high-end flat products with higher tensile strength that will enable it to enter new market segments such as ship building, defence equipment, energy & power and oil & gas.

It also intends to produce Dual Phase Steel (ferrite-martensite steel up to 1200 MPA strength) and TRIP (Transformed Induced Plasticity) steel which have applications in automobiles. The plant using state-of-the-art technology is designed to produce HR strips down to 1.2 mm thickness.

“Products at Kalinganagar will enable us to consolidate our leadership position in the automotive and infrastructure sectors, among others. This plant will enable the company maintain its leadership position in chosen segments”, said Kumar, vice-president, operation, Tata Steel Kalinganagar project.

He said, various facilities at the plant were commissioned in the last few months. While trials at the hot strip mill (HRM) had started in October 2015, the sinter plant commenced production in January 2016. Hot Metal production was initiated in March this year.

“We have formally announced starting of commercial production on May 25, 2016. At present, all the units of the plant are operational”, he added.

The first phase of 3 million tonnes per annum (mtpa) entails an investment of around Rs 25,000 crore. The second phase of the project envisages a similar capacity.

“The focus now is to stabilise and ramp up operations of all the operating units of the first phase. After that the next phase of 3 mtpa will be considered by the company’s Board”, Kumar said.

Out of 3475 acres allotted to Tata Steel at Kalinganagar for the 6 mtpa project, the company is currently in possession of a total of 2,100 acres with the balance land continuing to be occupied by the local villagers agitating against the project since 2004.

The company is hopeful of acquiring the rest of the land before the start of the second phase work.

“We are in the process of acquiring the balance land required to set up the next phase of 3 mtpa, along with all other support facilities,” he said.
 

The key components built by the company in the first phase include sinter plant, coke oven, blast furnace, steel melting shop (SMS) and hot strip mill (HSM). Except for the common facilities like SMS and HSM, the other units need to be replicated in the second phase, apart from construction of cold rolling mill anew to produce finished steel products.

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First Published: Jul 16 2016 | 10:24 PM IST

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