India’s Ministry of Steel has cautioned Bhilai Steel Plant (BSP), which is a unit of state-run steelmaker Steel Authority of India Limited (SAIL), against any shortfall in making steel rail supplies to government transporter Indian Railways (IR), a ministry official said on Monday, January 7.
The official said that BSP needs to ensure maximum production from its Universal Rail Mill (URM), Rail and Structural Mill and Steel Melting Shop, so that the entire order of IR for 1 million mt is met and that supplies do not fall short.
“There should be no shortfall in the order placed by IR,” Benoy Kumar, secretary at the Ministry of Steel said following a review meeting regarding the various production facilities of BSP last week.
Last year, IR was forced to float its first global tenders for procuring steel rails from overseas suppliers to meet its requirement for rail upgrade projects after BSP fell short in supplying the required volumes.
It was also the first time that Indian private sector steel mill, JSW Limited, the only other Indian steel rail producer, received an order for making supplies to IR after BSP fell short in meeting ordered volumes.