Kiriburu (Jharkhand): State-run steel maker SAIL would invest Rs 72,000 crore to increase its overall capacity from 13.82 million tonnes to 23.46 million tonnes and enhance its iron ore production, company Chairman C S Verma said here on Saturday.
"A sum of Rs 72,000 crore is being invested to increase the overall capacity from 13.82 million tonnes to 23.46 million tonnes and we have already placed orders worth Rs 58,000 crore till January last," he said.
Out of Rs 72,000 crore, Rs 10,284 crore would be used for development of SAIL mines under Raw Material Division (RMD) to increase the production of iron ore.
The RMD, which runs seven captive iron-more mines at Kiriburu, Meghahatuburu, Gua and Chiria in Jharkhand, and Bolani, Barsua and Kalta in Odisha, is working on the modernisation and capacity expansion of mines in the Eastern part of the country, Verma said.
SAIL will invest Rs 10,284 crore for development of mines under RMD as well as Bhillai to cater to its increased iron-ore requirements, he said.
Of the total investment, he said, SAIL will pump in Rs 940 crore to increase the capacity of Kiriburu mines from 4.25 million tonnes per annum to 5.50 million tonnes per annum.
Another Rs 900 crore will be invested on adjoining Meghahatuburu mines in West Singhbhum district of Jharkhand to increase capacity from 3 million tonnes per annum (MTPA) to 6.50 million tonnes per annum.
Rs 1091 crore will be invested for enhancing the capacity of the Bolani Mines from 4 MTPA to 10 MTPA.
He said jobs for most of the packages of these projects have already been awarded and are likely to be completed by 2013-14.
Besides, the mining in Gua Mines in West Singhbhum district, which remained closed since 2011, is likely to resume soon, Verma said.
Gua Mine will be developed up to 10 MTPA capacity along with installation of beneficiation and pelletisation facilities with an investment of Rs 3,000 crore, Verma said after visiting Kiriburu and Meghahatuburu mine for the first time.
Verma said the future iron ore security for SAIL will be ensured through development of new iron-ore mines at Chiria (Jharkhand) and Rowghat (Chattisgarh).
Of the total investment, Rs 39,000 crore will be invested on expansion and modernisation, Rs 7000 crore on value addition, Rs 35,00 crore on technology upgradation, Rs 7,000 crore on sustenance schemes and over Rs 10,000 crore for enhancing mining capacity and development of new mines, he said.
Post-expansion, the capacity will increase to 39 MTPA from the current 23 MTPA, he said, adding SAIL aims to enhance the capacity further to 45 MTPA by 2015-16 and 56 MTPA by 2019-20.
Referring to SAIL’s vision-2020, he said the company aims to produce 45 million tonnes per annum of steel.
Verma said SAIL will be installing three new blast furnaces, one each in Rourkela, Burnpur and Bhillai.
While the first furnace will be installed in Rourkela within one and half month's time, Burnpur plant will have the facility in next six months time followed by Bhillai in March 2014, Verma said, adding that blast furnace in Rourkela will have the maximum capacity.