Rs 34,450 cr SAIL revival for Sindri | business | Hindustan Times
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Rs 34,450 cr SAIL revival for Sindri

business Updated: Aug 06, 2011 00:01 IST
HT Correspondent
HT Correspondent
Hindustan Times

The cabinet committee on economic affairs (CCEA) on Friday approved the revival plan of Fertiliser Corporation of India’s plant at Sindri, Jharkhand, which will be executed by India’s largest steelmaker Steel Authority of India Ltd (SAIL). The cumulative investment in the area would be to the tune of Rs 34,450 crore.

SAIL has been selected on the nomination basis for allocation of land to set up a steel plant, a power plant along with a fertiliser plant for implementation of the revival plan. The Sindri unit is India’s first fertiliser unit.

The proposed revival plan envisages setting up of a 5.6 mt per annum (MTpa) greenfield steel making plant and a 1.15 MTpa fertiliser plant with investment of Rs 26,000 crore and R4,450 crore, respectively. The plan also envisages establishment of a power plant at a cost of around Rs 4,000 crore.

The project would be steered by a special purpose vehicle on the lines of a public sector undertaking company having three subsidiaries to look after the steel, fertiliser and power plants.

The proposed steel plant will have a diversified flat product-mix catering to the high-end steel market. While 4.2 MT capacity of the plant is proposed to be dedicated for production of HR products, around 1.2 MT will be earmarked for CR items. A coal- or gas-based power plant of suitable capacity will be set up under the plan to meet the requirements of the steel plant and township. Surplus power generated would be sold to outside markets.

“In order to expedite implementation of the project within the planned span of 42 months from the date of getting all clearances, we are planning to create a dedicated project office to monitor the different areas,” said C S Verma, chairman, SAIL.

The proposed 1.15 MTpa gas-based urea plant will be set up after dismantling and disposing of the existing urea plant at the site. Sindri plant was defunct since March 2002.