State-owned SAIL is mulling over setting up a steel project, at an estimated cost of Rs 60,000 crore, in Jharkhand.
The plant, which is expected to be built on the space belonging to a closed fertiliser mill in Sindri, Dhanbad district, would help the company raise its annual steel production to 60 million tonnes by 2020.
The steelmaker recently applied to the ministry of chemical and fertilisers for setting up the 12 million- tonne/per annum plant, government sources said. The integrated steel project would come up in two phases.
As per the proposal, the PSU would also set up a 1.15 million-tonne coal or gas-based urea plant at the site. The loss-making fertiliser mill in Sindri had been lying shut since 2002.
SAIL is currently in talks with South Korean steelmaker Posco to jointly set up two steel plants, entailing an estimated investment of Rs 15,000 crore, in the country. It has also been approached by ArcelorMittal and Kobe Steel for possible business ventures.