SAIL to set up a new alloys and Special steels Rs 7, 000 Cr unit in West Bengal; seeks Global Partner

Public sector Steel Authority of India is scouting for a global partner to set up an alloys & special steels unit in West Bengal. The project is likely to entail an investment of . 7,000 crore. The new plant is due to come up at Kulti near Asansol.

“We are looking at a new plant with a capacity of 1.2 million tonne for making special & alloy steels. SAIL will be interested in bringing in an international joint venture partner for the project. We already have around 600 acres in Kulti where we plan to set up the plant,” CS Verma, chairman, SAIL, said on Friday.

“The project would involve an investment of . 6,000-7,000 crore. Currently, SAIL makes similar products at Salem, VISL, Bhadravati and at its Alloy Steels Plant in Durgapur,” Verma added.

SAIL will be talking to quite a few global steel majors for a possible tie-up, he said. Such special steels, used for defence and high-end applications, form part of the company’s value-added products portfolio.

The steel major has signed an agreement for a 50:50 joint venture with Kobe Steel of Japan for a . 1,500- crore project to make iron nuggets using Kobe’s proprietary ‘ITmk3 technology’ at the Alloy Steels Plant. Among others, the Japanese steel major could be one of SAIL’s potential JV partners for the proposed Kulti unit too.

Earlier in the day, Verma met West Bengal chief minister Mamata Banerjee. SAIL and Burn Standard signed a joint venture agreement for manufacturing bogies and wagon couplers in East Midnapore district.

In response to an ET query, SAIL chairman stoutly defended the company’s performance in the face of recent criticism about the company’s ‘unsatisfactory performance’ by the steel minister.

Source ET