SAIL, BHEL to team up for making high-grade steel

The Heavy Industries Ministry is floating a tripartite joint venture with two public sector units and a foreign collaborator to manufacture cold-rolled grain-oriented (CRGO) steel.

The high-grade steel used in the manufacture of power equipment is currently imported.

While the MoU between BHEL and SAIL is expected to be signed in a week, the choice of the foreign technical partner is still being finalised. Korean firm Posco is expected to be the front-runner for this position.

‘Urgent need'

“With power equipment manufacturers having huge orders, the need for domestic CRGO steel capacity is urgent. We may build a new plant for this, for which we will use 300-400 acres from SAIL's existing facilities. The investment in a new production facility will be around Rs 8,000 crore,” Mr B. S. Meena, Secretary, Heavy Industries, told Business Line. .

He added that besides Posco, the Ministry is also talking to other global players such as Vizstahl from Russia and an Italian steel maker.

Steel industry sources said that SAIL has land in Maharashtra and Jharkhand where such a plant could come up. SAIL is also considering a CRGO procurement deal from the existing SAIL-Posco venture. Earlier, SAIL and Posco had signed an MoU for a 1.5-million-tonne-per-annum (MTPA) steel plant to come up at SAIL's Bokaro facility. Posco will be bringing in its patented FINEX technology for this.

“CRGO steel technology is closely held by a few global players that quote very high prices of around Rs 2 lakh a tonne,” said Mr Meena.



ref:
http://www.thehindubusinessline.com/2010/09/23/stories/2010092353450100.htm