New Delhi: Steel Authority of India (SAIL) plans to set up a three million tonne per annum (mtpa) hot strip mill at Rourkela Steel Plant (RSP) at an estimated cost of Rs 4,360 crore to cater to auto and white goods sectors.
The Hot Strip Mill, where steel slabs are reheated and rolled to hot rolled coil (HRC), will produce high-quality products that would cater to the high-end automobile and white goods segment, a source said.
RSP is located in the north-western tip of Odisha and at the heart of a rich mineral belt.
"Installation of a three mtpa new Hot Strip Mill at an estimated capital cost of Rs 4,360 crore has been accorded in-principle approval by the Board on September 20, 2013," the source told PTI.
SAIL would start the tendering process for the proposed mill shortly and plans to install it within 35 months from the date of signing of the contract.
"The mill which is envisaged to be installed in 35 months from the date of contract will enable SAIL to produce high-quality HRCs especially for the high-end automobile and the white goods segment," he added.
The domestic steel major has also plans to set up a 1.2 mtpa cold rolling mill at RSP, which may entail an investment of around Rs 5,000 crore, through a joint venture.
"SAIL believes that there is a huge potential for such sheets in India and the demand is only going to go northward in the coming days. However, it does not have the necessary technology and the plan is thus to rope in a partner who has the necessary technology for producing such sheets," he said.
SAIL, which is ramping up its steel making capacity to 24 mtpa from 14 mtpa at present, has already floated a global tender, inviting bids from potential partners for the proposed cold rolling mill complex.
The plant at RSP currently has two mtpa hot metal producing capacity and this would go up to 4.5 mtpa once the ongoing expansion is over.