Lok Sabha Question No. 5356 (UNSTARRED), answered on 2023-04-05
Subject: Units of SAIL
Ministry: STEEL
Asked by: Gowdar Mallikarjunappa Siddeshwara

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO. 5356

FOR ANSWER ON 05.04.2023

## UNITS OF SAIL

5356. SHRI G.M. SIDDESHWAR:

Will the Minister of STEEL be pleased to state:

- (a) the details of units of Steel Authority of India Limited (SAIL) set to be modernized in the next phase of the vision-2030 of the Government;
- (b) the current production capacity of each unit of SAIL with reference to hot metal, crude  steel  and  saleable  steel  and  the  extent  of  production  capacity,  in  terms  of percentage, achieved during the current nine months period;
- (c)  the  details  of  projected  production  capacity  of  each  SAIL  unit  after  proposed modernization; and
- (d) the delay which occurred in the last round of modernization of each SAIL unit and direct or indirect financial loss incurred thereon by SAIL?

## ANSWER

(SHRI FAGGAN SINGH KULASTE)

THE MINISTER OF STATE IN THE MINISTRY OF STEEL

- (a) In accordance with the target of 300 MTPA steel production capacity as per National Steel Policy (NSP) 2017, in the first phase of expansion tentative plan has been formulated  for enhancement of crude steel capacity production of SAIL Plants namely Durgapur Steel Plant, Rourkela Steel Plant, Bokaro Steel Plant and IISCO Steel Plant. However, the expansion is subject to following:-
- (i) Demand  Growth  for  finished  steel  to  absorb  the  enhanced  level  of  steel production in the sector.
- (ii) Resource availability to finance CAPEX with sustainable Debt : Equity ratio.
- (iii) Captive iron ore sources for supporting the enhanced capacity.
- (b) The current production capacity of Plants of SAIL with reference to hot metal, crude  steel  and  saleable  steel  and  the  extent  of  production  capacity,  in  terms  of percentage, achieved during the current nine months period  are as under : -

|                      | Hot Metal                 | Hot Metal                                              |                           |                                                        | Unit: '000T Saleable Steel   | Unit: '000T Saleable Steel                              |
|----------------------|---------------------------|--------------------------------------------------------|---------------------------|--------------------------------------------------------|------------------------------|---------------------------------------------------------|
| Plants               | Annual Operating Capacity | %Capacity utilisation for Apr- Dec'22 (pro-rata basis) | Annual Operating Capacity | %Capacity utilisation for Apr- Dec'22 (pro-rata basis) | Annual Operating Capacity    | %Capacity utilisation for Apr- Dec'22 (pro- rata basis) |
| Bhilai Steel Plant   | 6450                      | 80%                                                    | 6000                      | 82%                                                    | 5400                         | 84%                                                     |
| Durgapur Steel Plant | 2450                      | 103%                                                   | 2200                      | 102%                                                   | 2120                         | 101%                                                    |

| Rourkela Steel Plant   |   4000 | 107%   |   3800 | 106%   |   3520 | 106%   |
|------------------------|--------|--------|--------|--------|--------|--------|
| Bokaro Steel Plant     |   4700 | 93%    |   4600 | 86%    |   4180 | 89%    |
| IISCO Steel Plant      |   2700 | 93%    |   2500 | 94%    |   2390 | 94%    |
| Special Steel Plants   |      0 | -      |    410 | 56%    |    520 | 51%    |
| SAIL                   |  20300 | 93 %   |  19510 | 91 %   |  18130 | 92 %   |

(c) By 2030-31, it is envisaged to enhance the operational capacity of crude steel production of SAIL from existing 19.51 MTPA to around 35.65 MTPA tentatively. The envisaged Plant-wise Crude Steel Capacity of SAIL by 2030-31 is as under:-

| Steel Plants         |   Operating Crude Steel Capacity(MTPA) |   Envisaged Crude Steel Capacity (MTPA) |
|----------------------|----------------------------------------|-----------------------------------------|
| Bhilai Steel Plant   |                                   6    |                                    6.8  |
| Durgapur Steel Plant |                                   2.2  |                                    4.73 |
| Rourkela Steel Plant |                                   3.8  |                                    9.7  |
| Bokaro Steel Plant   |                                   4.6  |                                    7.03 |
| IISCO Steel Plant    |                                   2.5  |                                    6.98 |
| Alloy Steels Plant   |                                   0.23 |                                    0.23 |
| Salem Steel Plant    |                                   0.18 |                                    0.18 |
| SAIL                 |                                  19.51 |                                   35.65 |

Envisaged Crude Steel capacity is subject to finalization of DPRs and further, execution of the expansion plan as above is subject to the conditions mentioned in part (a).

(d) The Modernisation and Expansion (MEP) undertaken by Steel Authority of India Limited  (SAIL)  at  its  five  integrated  steel  plants  at  Bhilai  (Chhatisgarh),  Bokaro (Jharkhand), Rourkela (Odisha), Durgapur (West Bengal) & Burnpur (West Bengal) and  at  one  Special  Steel  Plant  at  Salem  (Tamil  Nadu)  has  been  completed progressively  by  Jun'2018.  The  details  of  unit-wise  actual  completion  vis-à-vis schedule completion is given below:-

| Plant/Unit           | Schedule completion   | Actual Completion   | Original Cost (Net of Cenvat) (Rs. Cr.)   | Revised Cost (Net of Cenvat) (Rs. Cr.)   |
|----------------------|-----------------------|---------------------|-------------------------------------------|------------------------------------------|
| Bhilai Steel Plant   | Mar.'2013             | Jun.'2018           | 17,266                                    | 22,566                                   |
| Rourkela Steel Plant | Mar.'2013             | Dec.'2014           | 11,812                                    | 13,307                                   |
| Durgapur Steel Plant | Dec.'2012             | Jun.'2015           | 2,875                                     | 3,169                                    |
| Bokaro Steel Plant   | Dec.'2011             | Sep.'2015           | 6,325                                     | 7,179                                    |
| IISCO Steel Plant    | Dec.'2010             | Dec.'2014           | 16,408                                    | 19,235                                   |
| Salem Steel Plant    | Mar.'2010             | Sept.'2010          | 1,902                                     | 2,371                                    |

This  was  mainly  due  to  the  nature  of  work,  which  entailed  engagement  of multiple  agencies;  challenge  of retrofitting  of  new  technology  in  the  existing  plants, resource constraints etc.

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