VSP pitches in for massive expansion

Chennai, Nov 3 (UNI) Public sector Visakhapatnam Steel Plant (VSP) is going for a massive expansion plan at an estimated investment of over Rs 8692 crore, according to VSP Director (Commercial) H S Chhatwal.

Addressing a press conference here today, he said the proposed expansion would take place in two phases and the first was expected to be completed by 2008-09 and the second in another 12 months.

He said the proposed expansion was to meet the demand of steel and it was to enhance the capacity of the plant from the present 3.5 million to 8.3 million raw steel and 3.2 million tonne per annum to 5.72 million tonne of saleable steel.

All the facilities were planned to be commissioned within 36 months from the date of approval of the project, except for special bar mill and structural mill, which were planned to be commissioned in 45 months and 48 months repectively, he said.

He also pointed out that there would be another proposal for establishing a steamless steel pipe plant at a cost of Rs 800 crore with an annual production capacity of 3000 tonnes for use by ONGC, Boiler Industries and general engineering application industries.

The national steel policy announced by the Government envisaged a growth in steel capacity in the country from 38 million tonnes in 2004-05 to over 110 million tonnes during 2020. The growth is projected at cumulative aggregated growth rate of 7.3 per cent.

The current per capita consumption of steel here is very low at 35 kgs when compared to the world average of 170 kgs. The consumption in the rural areas-- where 70 per cent of the population live-- is only 2kg. Whereas in the urban areas it is around 77 kgs.

The national steel policy now envisages an increase of consumption in the rural areas from the present level of 2 kgs to 4 kgs by 2020, he added.

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