Thursday, January 7, 2010

SAIL Subsidiary To Build New Chandrapur Furnace

Maharashtra Electrosmelt Ltd a SAIL subsidiary will invest INR 200 crore to set up a furnace with capacity of 42,000 tonnes per annum at its Chandrapur plant.

Maharashtra Electrosmelt sources said that "Its board has already cleared the expansion proposal and it has been sent to the sub committee of Steel Authority of India Ltd board for approval.”

Sources said that it would require an investment of around INR 200 crore and once it is cleared by the sub committee, global tenders would be floated for the purpose. It would take two years from the date of placement of the order to get the furnace commissioned. This furnace for the Chandrapur plant will have a capacity of 42,000 tonnes per annum for increasing production of silicomanganese.

Sources said that Maharashtra Electrosmelt at present supplies 50,000 tonnes of ferromanganese required by SAIL plants, besides meeting 40% demand for silicomanganese. Post expansion, MEL would be in a position to fulfill 70 per cent silicomanganese requirements by SAIL plants.

Sources further added that apart from capacity expansion, a 67.5 MW power plant has been proposed to be set up at Chandrapur by NSPCL a joint venture company of NTPC and SAIL to reduce MEL's dependence on external sources of electricity.

Sources said the proposal for a power plant is now at a preliminary stage. Currently, MEL has a power plant with 4.2 MW capacity which is fired by the gas generated in a blast furnace.

Source: Steel Guru/Business Standard

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