Steel minister asks SAIL to fast-track expansion

Unhappy over delay in the Rs 70,000 crore modernisation programme of SAIL, Steel Minister Beni Prasad Verma asked the state-run PSU to fast-track expansion, saying the government could not compromise with capacity addition in the sector which was crucial to the country.

“There have been delays in SAIL’s expansion, which is a cause of concern. This time there is a delay of three to 12 months in various expansion works. I have told them this is the last timeline, as we need to augment country’s steel capacity and cannot compromise with this,” Verma said after chairing a meet to review the capacity addition plan.

The Rs 70,000 crore modernisation project at Steel Authority of India Ltd (SAIL) was taken up in 2007-08 to ramp up its capacity to about 24 million tonnes (MT) from 13.8 MT and is likely to be completed by 2012-13.

More from Business fwire

China property sector distress deepens as second company runs into financial troubles Labour codes unlikely to be implemented this fiscal due to slow progress on drafting of rules, political considerations

[caption id=“attachment_359917” align=“alignleft” width=“380” caption=“The Rs 70,000 crore modernisation project at SAIL was taken up to ramp up its capacity to about 24 million tonnes. Reuters”]  [/caption]

“I am not happy with their pace and have asked them to take action against contractors, some of whom are government companies, to expedite the work.

Besides, SAIL has been asked to initiate steps to fill up vacant posts which is impacting expansion,” Verma said.

Running behind schedule, the company has now fixed deadlines for completion of expansion projects at its Rourkela, Durgapur and Burnpur steel plants to March 2013, while for Bokaro projects it has been fixed for September next year, as per a document.

The Steel Minister said that the process of award of works by the company has been time-consuming and instructions have been given to fast-track the same.

Verma said he had also directed chairman cum managing director of state-run HEC R Mishra, present during the review meeting along with SAIL chairman C S Verma, to expedite work. Ranchi-based HEC is executing about Rs 1,800 crore worth of projects at Durgapur and Bhilai plants of SAIL. Beside some work is being executed by MECON as well.

The country’s steel production capacity at present is 88 MT, which the government plans to take to 120 MT by March, 2013.

PTI