Lok Sabha Question No. 1917 (UNSTARRED), answered on 2018-07-30
Subject: Modernisation of Steel Plants
Ministry: STEEL
Asked by: SISIR KUMAR ADHIKARI, JANARDAN SINGH SIGRIWAL

## LOK SABHA

## UNSTARRED QUESTION NO.1917 FOR ANSWER ON 30/07/2018

## MODERNISATION OF STEEL PLANTS

1917.  SHRI SISIR KUMAR ADHIKARI:

SHRI JANARDAN SINGH SIGRIWAL:

Will the Minister of STEEL be pleased to state:

(a) whether the Government has taken a decision of 'No Investment' policy in the steel PSUs of the country and if so, the details thereof along with the current status of strategic disinvestment of SAIL subsidiaries;

(b) the details of the modernisation and expansion plans undertaken by the public sector steel plants, plant-wise including the Salem Steel Plant;

- (c) whether there has been delay in the execution of these expansion plans and if so, the reasons therefor along with the present status of the execution of work and the time likely to be taken for their completion, plant-wise;
- (d) the  details  of  the  total  expenditure  incurred/likely  to  be  incurred  on  this expansion exercise, along with the total steel produced during each of the last three years and the likely increase in the total production capacity after the completion of said exercise, plant-wise;
- (e) whether the said expansion plan is likely to result in generation of employment opportunities and if so, the details thereof along with the details for the present total manpower strength in the various plants of the Steel Authority of India Limited, plantwise;
- (f) whether the legal heirs of the families whose land had been required for setting up  the  public  sector  steel  plants  have  been  adequately  compensated  and  provided with employment; and
- (g) if  so,  the  details  thereof  and  if  not,  the  reasons  therefor  along  with  the  policy being followed by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

- (a) No, Madam. The Government has not taken any decision on 'No Investment' policy  in  steel  PSUs  of  the  country.  The  Government  of  India  accorded  'in-principle' approval  for  strategic  disinvestment  of  three  units  of  SAIL  viz.  Salem  Steel  Plant (SSP), Alloy Steels Plant (ASP) and Visvesvaraya Iron & Steel Plant (VISP) on 27 th October, 2016.  Expression of Interest for Alloy Steel Plant was floated and responses have been received.

(b)to(d): The details of modernisation and expansion plans of Steel Authority of India Limited  (SAIL)  and  Rashtriya  Ispat  Nigam  Limited  (RINL),  plant-wise,  are  given  at Annexure-I .

- (e) Yes, Madam. The details are attached as Annexure-II.

(f)to(g): Yes,  Madam. SAIL and RINL have provided employment to more than 28000 and  7650  persons  respectively  under  displaced  category  and  compensation  was deposited with respective state Governments.

*********

Annexure-I

(Annexure-I for part (b) to (d) Lok Sabha Unstarred Question No. 1917 for answer on 30.07.18)

## Modernization, expansion, expenditure and production plans

## SAIL Units

1. SAIL had undertaken modernization and expansion to enhance its crude steel capacity  from  12.8  Million  Tonne  Per  Annum  (MTPA)  to  21.4  MTPA.  The indicative investment for Modernization & Expansion is Rs. 61,870 crore. The cumulative  expenditure  incurred  till Jun.'18 is  Rs.  67,767  crore  towards Modernisation & Expansion, Mines and related sustenance schemes.
2. The  major  plant-wise  details  of  production  capacity  (present  and  expanded), indicative investment/ expenditure and total cumulative expenditure incurred till Jun.'18 are:-
3. Crude Steel and Saleable Steel production by SAIL during last three years is given below:-
4. The  plant-wise  completion  details  (schedule/actual)  of  Modernisation  and Expansion are given below:-

| Plant                     | Existing Crude Steel Capacity (Mtpa)   |   Expanded Crude Steel Capacity (Mtpa) | Approved Cost (Rs. Cr.) (Gross)   | Expenditure (till Jun.'18) (Rs. Cr.) (Gross)   |
|---------------------------|----------------------------------------|----------------------------------------|-----------------------------------|------------------------------------------------|
| Bhilai Steel Plant (BSP)  | 3.93                                   |                                   7    | 18,847                            | 18,832                                         |
| Durgapur Steel Plant(DSP) | 1.8                                    |                                   2.2  | 3,164                             | 3,140                                          |
| Rourkela Steel Plant(RSP) | 1.9                                    |                                   4.2  | 12,922                            | 12,665                                         |
| Bokaro Steel Plant(BSL)   | 4.36                                   |                                   4.61 | 6,951                             | 6,076                                          |
| IISCO Steel Plant(ISP)    | 0.5                                    |                                   2.5  | 17,961                            | 18,719                                         |
| Salem Steel Pant(SSP)     | -                                      |                                   0.18 | 2,138                             | 2,373                                          |

| Item (Million Tonne)   |   2015-16 |   2016-17 |   2017-18 |
|------------------------|-----------|-----------|-----------|
| Crude Steel production |      14.3 |      14.5 |        15 |

| Plant                | Schedule   | Actual   |
|----------------------|------------|----------|
| Salem Steel Pant     | Mar.'10    | Sep.'10  |
| Rourkela Steel Plant | Mar.'13    | Dec.'14  |
| IISCO Steel Plant    | Dec.'10    | Dec.'14  |
| Durgapur Steel Plant | Dec.'12    | Jun.'15  |
| Bokaro Steel Plant   | Dec.'11    | Sept.'15 |
| Bhilai Steel Plant   | Mar.'13    | Jun.'18  |

## (Annexure-I for part (b) to (d) Lok Sabha Unstarred Question No. 1917 for answer on 30.07.18)

## 5. Reasons for delay in execution:

- a) Expansion plans for capacity enhancement by SAIL were taken up during the economic upturn (2006 onwards). Reluctance of limited technology suppliers to do civil & structural work etc. leading to splitting of turnkey packages, causing interface problem due to involvement of multiple agencies.
- b) The  projects  being  mainly  brown  field  in  nature  faced  the  challenges  of retrofitting of new technology in the existing technology and, due to the compact layout, space was a big constraint leading to problems of interface and logistics.
- c) Lack of resources/ slow mobilization of resources and fund constraints of the contractors leading to risk purchases & fresh ordering in some cases.

## RINL

## Status of 6.3 MTPA Expansion:

- 1) RINL  has  completed  its  capacity  expansion  from  3  million  tons  per  annum (mtpa) to 6.3 mtpa of liquid steel in April, 2015.  Modernization of major units & Up-gradation to 7.3 Mtpa Liquid Steel was completed in December, 2017.
- 2) Major reasons for delay include contractual delays relating to civil structural/electrical/supply  packages,  etc.  including  external  factors  such  as long monsoon period leading to temporary flooding of the construction site as also  cyclone  Hudhud  which  stuck  Visakhapatnam  on  12 th October,  2014  and caused  damage  to  the  expansion  area  including  equipment/machinery  and power lines.
- 3) RINL  has  undertaken  expansion  of  the  Visakhapatnam  Steel  Plant  at  an approved cost of Rs.12291 crore. Total expenditure incurred towards expansion from 3 mtpa to 6.3 mtpa is Rs.12,095 crore.  Further, RINL had taken up modernization/upgradation of the older units at an approved cost of Rs.3530 crore. An expenditure of Rs.2754 crore has been incurred on the modernization/upgradation of the units.
- 4) Crude steel production during the last three years is as under:-

Unit: Million tonnes

| Year    |   Actual Production |
|---------|---------------------|
| 2015-16 |                3.64 |
| 2016-17 |                3.96 |
| 2017-18 |                4.73 |

Annexure- II

## (Annexure-II for part (e) Lok Sabha Unstarred Question No. 1917 for answer on 30.07.18)

1. Employees  recruited  against  modernization  and  expansion  since  2009-2010 onwards as on 1.7.2018 is as under:-
2. The present total manpower strength in five Integrated Steel Plants of SAIL is as under:-

| Plant   |   Recruitments |
|---------|----------------|
| BSP     |           1920 |
| DSP     |            396 |
| RSP     |           1786 |
| BSL     |            802 |
| ISP     |           3698 |
| SSP     |            238 |
| Total   |           8840 |

| Plant              |   Manpower as on 1.7.2018 |
|--------------------|---------------------------|
| BSP                |                     22015 |
| DSP                |                      9356 |
| RSP                |                     14275 |
| BSL                |                     13057 |
| ISP                |                      6710 |
| Other plants/units |                     10076 |
| Total              |                     75489 |

********