SAIL to invest Rs 7,800 cr on RSP modernisation

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Bhubaneswar, Sep 12 (UNI) Thd Steel Authority of India Limited (SAIL) will pump in Rs 7,800 crore on the modernisation of Rourkela Steel Plant (RSP) over a period of three years to raise its production capacity from 2.2 million tonnes to eight million tonnes by 2019-2020.

SAIL Director (Personnel&RMD) G Ojha told newsmen that RSP's present capacity would be enhanced to four million tonnes by 2010 and by 2020 it would reach eight million tonnes.

He said as part of the modernisation, the SAIL has decided to modernise and upgrade in a big way the Balani, Kalta, Barsuan, Kaldi and Taldi mines to expand the iron ore production to 13 million tonnes.

Mr Ojha said the Taldi mines would go for a major expansion programme involving an investment of Rs 1,100 crores which included a beneficiation plant and a Palliation plant to produce fine ore.

On the large-scale corruption in the modernisation of the RSP in the past, he said this time the SAIL has decided to sign an Integrity Pact in case the contract was over Rs 100 crore so that a transparency could be maintained while dealing with the suppliers.

The SAIl, he said, would be the second PSU in the country after the ONGC to introduce the Integrity Pact awarding contract in the expansion programme.

On export of iron ore from the country, Mr Ojha said high grade and lump grade ore should not be exported but low grade ore be allowed to export to minimise the pollution effect.

UNI

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