ROURKELA: The Rourkela Steel Plant (RSP) of SAIL is aiming for a projected Profit Before Tax (PBT) of Rs 1,008 crore in 2024-25 by implementing new strategies to boost profitability and reduce costs. As part of these efforts, RSP has partnered with two private companies to produce iron ore pellets using unused iron ore fines from RSP mines.
As per RSP sources, on May 15, RSP signed agreements with Shri Mahavir Ferro Alloys Pvt Ltd near Rourkela and MSP Steel & Power Ltd in Raigarh, Chhattisgarh. The agreements involve the annual supply of 10 lakh tonnes of low-grade iron ore fines from RSP’s Bolani and Barsua Mines to these vendors for beneficiation and conversion into iron ore pellets. RSP will receive 6,50,000 tonnes of iron ore pellets annually from these vendors for use in its Blast Furnaces (BFs).
This initiative will not only enhance the productivity and techno-economics of RSP’s BFs but also address storage and environmental concerns related to the dumped iron ore fines and tailings at the mines.
To achieve its profit target, RSP management has also outlined strategies focusing on cost efficiency, closing unviable production units, expanding market presence, and improving other techno-economic parameters.
Earlier, during a special interaction session ‘Chunauti’ the RSP director-in-charge (DIC) Atanu Bhowmick apprised the employees of the challenging targets and major strategic initiatives for 2024-25.
Bhowmick said in view of the negative financial implications associated with operations of different units it has been decided to shut down Blast Furnace (BF) 4 and close Hot Strip Mill (HSM)-1 and Cold Rolling Mill (CRM), adding the decisions are aimed at improving the bottom line of RSP.
“It is now a challenge for the RSP collective to achieve the target of producing 4.73 MT of hot metal with two furnaces and we all have to accept it with letter and spirit” he added.
Sources said achieving 4.73 MT hot metal target in 2024-25 is challenging considering RSP’s rated hot metal production capacity of 4.5 MTPA. As planned RSP has been operating only the BF-1 and 5, while BF-4 along with the HSM-1 and CRM are not in use over viability issue.