Beni Prasad Verma of Steel Discusses Various Steel Projects with Oommen Chandy

INVC,,

Delhi,,

The Chief Minister of Kerala Shri Oommen Chandy called on the Union Minister of Steel Shri Beni Prasad Verma here today. Shri Verma discussed present status and future roadmap for the Joint Venture (JV) of SAIL and Steel Complex Limited, i.e. SAIL Steel Complex Limited with Shri Verma.  The setting up of a Titanium Sponge Plant and setting up of Rare Earth Mineral Benificiation Project in joint venture with NMDC/KIOCL were also discussed in the meeting.

SAIL Steel Complex Limited (SCL) is a Joint Venture (JV) of SAIL and Steel Complex Limited, a Government of Kerala Enterprise, having equal share holdings of SAIL and Kerala Government of 43.8% each. Rest 12.4% shares of this JV are with the public. The management of this company is with SAIL. It is a 50,000 tonne per annum capacity mill for producing continuous cast billets. There is a proposal for setting up a 65,000 tonne per annum Rolling Mill for TMT Bars at Kozikode involving a capex of Rs. 50.00 crore. The billets from the JV Company would be used for conversion into TMT Bars and the same would be sold by SAIL for enabling better revenue realization. Salem Steel Plant of SAIL has been appointed as the central procurement agency for procurement of scrap for SCL.

SAIL is preparing a techno-economic feasibility report for setting up a Titanium based plant in Kollam, Kerala and the work is in its final stage. A decision regarding the business model would be taken on receipt of the feasibility report.

Government of Kerala had earlier proposed to NMDC to have Joint Venture project with Kerala State Industrial Development Corporation Ltd (KEMDEL) or Kerala Minerals & Metals Limited (KMML) for mining of Illmenite and other associated rare earth minerals and setting up a mineral beneficiation plant, in which KEMDEL/ KMML may have minority partnership with equity up to 26% and the rest of the equity with JV partner. The final product of the mineral beneficiation plant was proposed to be used in 10,000 Tonne per annum (TPA) Titanium Sponge plant and Titanium Alloy plant, which Kerala Government had proposed to set up in Joint Venture with SAIL.

Government of Kerala is now proposing to expand the mineral beneficiation and extraction activities by setting up on site beneficiation projects in Sri Lanka and Vietnam, as these countries have enough mineral resources and have shown interest in setting up such facilities there. Government of Kerala has proposed a Joint Venture between NMDC and Government of Kerala for setting up such projects, which would help in expanding plant capacities in Kerala to produce 10000-20000 TPA Titanium Sponge.

Considering high value realization of the final product, NMDC proposes to participate in value addition project of Titanium Sponge rather than restricting its activities up to mineral beneficiation only.

KIOCL has signed an MoU with Kerala State Industrial Development Corporation in presence of the Steel Minister and the Chief Minister to explore the possibility of iron ore mining, along with beneficiation and pelletisation facilities in the state of Kerala. The MoU will also look into the possibility of taking up other allied activities.