ROURKELA: what could be a telling blow for the region, the SAIL with instruction from the Ministry of Steel (MoS) is reportedly moving ahead towards downsizing the proposed greenfield expansion of the Rourkela Steel Plant (RSP) from 5 MTPA to 3 MTPA.
Limited budget, delay in finalising RSP’s proposal and tribal protest at Barkani stalling the plant’s new rail line project are being attributed to the downsizing plan.
Sources privy with the development said a week ago, the consultancy firm MECON handed over a detail project report (DPR) for 3.1 MTPA expansion of RSP, a blue chip integrated plant of SAIL which was on the priority list for expansion with initial proposal submitted five years ago.
According to a August 2022 release of the Press Information Bureau (PIB), with India planning to enhance crude steel production capacity to 300 MTPA by 2030, the SAIL planned to increase its capacity to 35 MTPA from 20.63 MTPA by 2030-31. For this, SAIL planned an indicative investment of around Rs 1.10 lakh crore sourced from a combination of debt and equity.
Sources said initially, Rs 30,000 crore was earmarked for the RSP to enhance its capacity to 9.80 MTPA from the existing 4.65 MTPA. As of now, IISCO, Burnpur is in advanced stage of implementing capacity expansion from 2.5 MTPA to 7.1 MTPA at a cost of Rs 45,810 crore. Alloy Steel Plant, Durgapur has received Rs 1,714 crore for expansion. The Bhilai Steel Plant, which was left out in the previous expansion, has received in-principle approval for expansion from 6.8 MTPA to 10.2 MTPA at a cost of Rs 31,000 crore.
The rest available funds are to be divided between the RSP and Durgapur Steel Plant (DSP). Hence, the MoS wants to downsize RSP’s proposal as a temporary measure.
RSP sources confirmed that discussions are taking place at SAIL and the Steel Ministry level in this regard. RSP director-in-charge Alok Verma on Thursday attended a meeting at Delhi convened by the Steel secretary Sandeep Poundrik. RSP is likely to get Rs 20,000 crore for the 3 MTPA greenfield expansion, while Rs 10,000 crore would be given for mines development.
The sources noted that the stalled new rail line project of RSP remains a hurdle. In the last two days, in-charge DGP Vinaytosh Mishra and chief minister’s advisor Prakash Mishra discussed the issue with top RSP officials.
BJP MLA of RN Pali Durga Charan Tanti said if RSP’s expansion is cut down, it will be unfair for the people and economic aspiration of the region. “Pushing for industrial growth with proactive and urgent measures, our BJP government arranged 1,200 acres at Barkani for the expansion. I urge SAIL and the Steel Ministry to go ahead with the original plan.”
Retired RSP executive director (projects) PK Sahu, who was associated with the expansion planning, said the site with 1,200 acres was regained with much struggle for 5 MTPA, but the 3 MTPA set-up would leave no scope for future expansion.