Lok Sabha Question No. 84 (STARRED), answered on 2018-12-17
Subject: Modernisation of Steel Plants
Ministry: STEEL
Asked by: KRISHNAN NARAYANASAMY RAMACHANDRAN, PRALHAD VENKATESH JOSHI

THE MINISTER OF STEEL

## LOK SABHA

## STARRED QUESTION NO.*84 FOR ANSWER ON 17/12/2018

## MODERNISATION OF STEEL PLANTS

- *84. SHRI K.N. RAMACHANDRAN:

SHRI PRALHAD JOSHI:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government has undertaken/proposes to undertake modernisation and expansion projects for various public sector steel plants including Salem and Durgapur steel plants in the country;
- (b) if  so,  the  details  thereof  along  with  estimated  cost  of  modernisation  and  the funds allocated for the purpose, plant-wise;
- (c) whether the Government has directed all public sector steel companies to set up energy efficiency and emission reduction provisions under their modernisation and capacity expansion programmes;
- (d) if so, the details thereof along with the steps taken towards achieving energy efficiency and emission reduction in the steel sector through the Global Environment Facility of the United Nations Development Programme; and
- (e) the  likely  date  of  start  and  completion  of  modernisation  work  of  each  such plant along with the other steps taken/proposed to be taken by the Government to further  modernise  the  said  plants  to  international  standards  and  implement  the National Steel Policy, 2017?

## ANSWER

(SHRI CHAUDHARY BIRENDER SINGH)

(a)to(e):  A Statement is laid on the Table of the Lok Sabha.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (A)  TO  (E)  OF  THE  LOK SABHA STARRED QUESTION NO. *84 FOR ANSWER ON 17/12/2018 TABLED BY SHRI K.N. RAMACHANDRAN AND SHRI PRALHAD JOSHI, MEMBERS OF PARLIAMENT REGARDING 'MODERNISATION OF STEEL PLANTS'

(a)&(b): Steel, being a deregulated sector, the decision to undertake modernisation and expansion projects for public sector steel plants is taken by the individual public sector  company  based  on  commercial  considerations  and  market  dynamics.  Two major  public  sector  steel  companies,  Steel  Authority  of  India  Limited  (SAIL)  and Rashtriya Ispat Nigam Limited (RINL) took up modernization and expansion of their steel  plants  recently.  This  includes  steel  plants  of  SAIL  at  Bhilai  (Chhattisgarh), Bokaro  (Jharkhand),  Rourkela  (Odisha),  Durgapur  (West  Bengal),  Burnpur  (West Bengal), Salem (Tamil Nadu) and of RINL at Visakhapatnam (Andhra Pradesh).

The  Modernisation  of  public  sector  steel  plants  is  funded  by  the  concerned company  from  their own  resources  and/or loans taken from Banks/Financial Institutions.

The indicative investment for modernisation & expansion of SAIL plants is Rs. 61,870  crore.  Besides  this,  provision  of  Rs.10,264  crore  has  been  made  towards development  and  expansion  of  mines.  The  plant  wise  details  of  modernisation  & expansion of SAIL are given below:-

| Plant                                | Crude Steel Capacity in MTPA (million ton per annum)   | Crude Steel Capacity in MTPA (million ton per annum)   | Approved Cost in Rs. Cr.   |
|--------------------------------------|--------------------------------------------------------|--------------------------------------------------------|----------------------------|
|                                      | Before Expansion                                       | After Expansion                                        | (Net of Cenvat)            |
| Bhilai Steel Plant                   | 3.93                                                   | 7.0                                                    | 17,266                     |
| Durgapur Steel Plant                 | 1.8                                                    | 2.2                                                    | 2,875                      |
| Rourkela Steel Plant                 | 1.9                                                    | 4.2                                                    | 11,812                     |
| Bokaro Steel Plant                   | 4.36                                                   | 4.61                                                   | 6,325                      |
| IISCO Steel Plant                    | 0.5                                                    | 2.5                                                    | 16,408                     |
| Salem Steel Pant                     | -                                                      | 0.18                                                   | 1,902                      |
| Sustenance Schemes in Various Plants | -                                                      | -                                                      | 5,282                      |

RINL  has  completed  expansion  for  doubling  its  liquid  steel  capacity  from  3 MTPA  to  6.3  MTPA  of  Vizag  Steel  Plant  in  April,  2015  at  an  estimated  cost  of Rs.12,291 crore.  Further, to enhance liquid steel capacity by 1 MTPA. i.e. from 6.3 MTPA  to  7.3  MTPA  at  an  estimated  cost  of  Rs.  4,000  crore,  RINL  undertook modernisation  of  its  existing  major  production  facilities  like  Blast  Furnaces,  Steel Melting Shop Converters and Sinter Plant to upkeep the health of major equipment. All the modernised units are in operation.

(c)& (d): The modernisation and capacity expansion programmes of steel plants in the country are taken up envisaging adoption of latest technology to make the units energy  efficient  and  environment  friendly.  For  any  modernisation  and  capacity expansion project of steel plant, Environmental Clearance (EC) has to be obtained from the concerned Agencies/Departments of the Government. The energy-efficient and emission reduction provisions are in-built in the EC process.

At  34  model  units,  energy  efficiency  and  emission  technologies  have  been implemented through the Global Environment Facility of the United Nations Development Programme for energy efficient production in secondary steel sector.

(e) In  order  to  meet  the  international  standards  and  to  implement  the  National Steel  Policy,  2017,  the  public  sector  steel  companies  regularly  undertake  capital investments  on  projects  from  their  own  resources  from  time-to-time  based  on commercial considerations and market dynamics.

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