Indian state-run steel producer Steel Authority of India Limited’s (SAIL) Rourkela Steel Plant (RSP) has commenced construction of a 2 million mt per year capacity pellet plant, according to a statement issued by RSP on Friday, February 28.
The pellet plant is scheduled for completion and start of production within the next 24 months, the company said.
Earlier in February, RSP had announced the setting up of a pellet plant by a consortium of Orissa Metaliks Private Limited and Rosemary Sponge and Ispat Private Limited.
The pellet plant will be built on a construct, operate and maintain (COM) basis.
The operation and maintenance (O&M) contract is structured for a period of 20 years with a provision to extend it for an additional five years on mutually agreed terms and conditions, RSP said in the statement.