ROURKELA: In a major setback, the SAIL in its recent meeting, indefinitely deferred the proposed modernisation and expansion plan of the Rourkela Steel Plant (RSP) citing encroachment of the proposed sites. However, the expansion plans of three other integrated steel plants were approved by the meeting.
The earlier meeting of the Board of Directors of SAIL held at Rourkela on January 16 had also insisted on prior redemption of encroached land before moving on to the RSP’s modernisation and expansion proposal worth about Rs 30,000 crore.
SAIL sources said the board meeting held at Delhi about a week ago approved expansion plans of the Bokaro, IISCO and another steel plant, but pushed the case of RSP indefinitely. According to media reports, SAIL envisages to enhance its capacity to about 50 Million Tonnes Per Annum (MTPA) from the present level of 24 MTPA by 2030.
In view of SAIL’s growth plan the RSP during early 2021, had sent expansion proposal for above Rs 30,000 crore to augment its hot metal production capacity from the present 4.5 Million Tonnes Per Annum (MTPA) to 9.3 MTPA. RSP envisages setting up of a new blast furnace, raw materials handling plant, sinter plant, coke oven and steel melting shop, while the new rolling mill for finished products would be decided later depending on demand for product range.
Sources said during initial discussion with the Sundargarh district administration during mid-2021, it was proposed to evict about 6,000 families across 55 slums which was later scaled down to eviction of about 3,000 families as per the actual land requirement for the expansion projects. The affected families would be rehabilitated with affordable housing scheme on PPP mode for which RSP would provide required land.
An official, on condition of anonymity, said a month back chief secretary PK Jena held a coordination meeting at Bhubaneswar with senior revenue officials and Sundargarh district administration led by collector Parag Harshad Gavali. The house agreed on judicious relocation of encroachers as per the actual land need for RSP’s expansion.
President of the BMS-affiliated Rourkela Ispat Karkhana Karmachari Sangh (RIKKS) Himanshu Sekhar Bal lamented deferment of RSP’s expansion. He urged the district administration and RSP to urgently act in tandem citing RSP’s expansion is a necessity for its survival.
Expansion plans
Present capacity 24 MTPA to 50 MTPA
Augmenting hot metal production capacity from the present 4.5 Million Tonne Per Annum (MTPA) to 9.3 MTPA
Setting up of a new blast furnace, raw materials handling plant, sinter plant, coke oven and steel melting shop