On July 26, Indian steel giant Steel Authority of India Ltd (SAIL) laid the foundation stone of a TMT Bar Mill with a 150,000 mt per year capacity as part of a plan to revive and develop the steel plant of the erstwhile Malvika Steel Ltd (MSL) in Jagdishpur, Uttar Pradesh, India.
The assets of MSL were purchased by SAIL through Debt Recovery Tribunal-I, New Delhi in February 2009 and the unit was renamed Jagdishpur SAIL Unit (JSU).
Indian steel ministry secretary Atul Chaturvedi, and SAIL chairman C.S. Verma laid the foundation stone at a ceremony attended by various guests.
"The entire team of JSU has to work with exemplary dedication, zeal and commitment to fulfill the objectives of acquiring the unit," said Mr. Chaturvedi on the occasion.
The TMT Bar Mill is being set up by SAIL at a cost of INR 460 million ($9.85 million) in phase-1 of JSU's revival plan. The proposed facilities and product mix envisaged in phase-1 also include a 10,000 mt cold forming line and a 13,000 mt corrugation line. The total cost of JSU's phase-1 revival has been estimated to be INR 1 billion ($21.42 million).
SAIL has also planned to revive iron and steel making at JSU in the second phase for which a feasibility report has been prepared. The company will set up a gas-based 475 MW power plant at Jagdishpur as a joint venture.