Gwalior, Aug 17: Union Minister of Steel and Mines Narendra Singh Tomar inaugurated a steel processing unit established under the Public Private Partnership (PPP) model, between SAIL and Prime Gold Private Limited.
The unit has been set up at Billowa in Gwalior district under a Joint Venture between M/s Prime Gold and the Steel Authority of India Limited (SAIL).
"With the establishment of this steel processing unit, many employment opportunities will be generated and a number of development avenues will open up for the local population. This unit is a firm step towards achieving the goals of Make in India," Tomar said while addressing a function on the occasion.
"The steel sector contributes to more than two per cent of the GDP and employs around six lakh people and we plan to increase this number manifold," he said.
The Minister who represents Gwalior in the Lok Sabha said that his department in association with the Ministry of Skill Development and Entrepreneurship has taken many initiatives for skill development in the steel sector which will open up new employment opportunities.
The establishment of this steel unit is a novel initiative by the steel ministry for turning the Make in India vision into a reality, Tomar said.
The highlight of the unit will be to provide high quality steel at reasonable prices to rural areas around Madhya Pradesh like Uttar Pradesh, Rajasthan, Delhi and Haryana.
SAIL will market the steel TMT produced from this unit through its widespread marketing network and shall pay conversion charges on per tonne basis to the JV partner.
In the joint venture, M/s Prime Gold holds a 74 per cent stake and SAIL has a 26 per cent stake.
The unit will produce one lakh tonne of TMT steel and 60,000 tonnes billets will be supplied from SAIL plants to this unit annually.