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Maharashtra Elektrosmelt Merges with SAIL
07/20/2011 - Maharashtra Elektrosmelt Ltd (MEL), the 99.12% subsidiary of Maharatna Steel Authority of India Ltd (SAIL), has been merged with SAIL. MEL has the capacity to produce about 100,000 tonnes of manganese-based ferro-alloys.
Maharashtra Elektrosmelt Ltd (MEL), the 99.12% subsidiary of Maharatna Steel Authority of India Ltd (SAIL), has been merged with SAIL. The merger process started in April 2006 and culminated with the receipt of the final order from the Ministry of Corporate Affairs in mid-June 2011. The final order of amalgamation of MEL with SAIL has been filed with the Registrar of Companies at Delhi and Mumbai. All public shareholders of MEL will be allotted SAIL shares in a swap ratio of 1.7:1.
Located at Chandrapur in Maharashtra, MEL is an important unit for SAIL as it meets the requirement of manganese-based ferro-alloys. MEL has the capacity to produce about 100,000 tonnes of manganese-based ferro-alloys through the submerged arc furnace (SAF) route.
SAIL has already made plans for the expansion of MEL. SAIL Chairman C.S. Verma said: “Commensurate with SAIL’s further expansion plans, MEL’s expansion will be pursued for meeting the full requirement of ferro-alloys of the SAIL steel plants.”
Plans call for the installation of a third SAF with capacity to produce about 90,000 tonnes of ferro-manganese at an estimated cost of about Rs. 200 crore. SAIL expects the process of awarding a contract to the successful bidder to be completed soon. Addition of a 4-MW-capacity power plant (steam turbine and generator), which will use byproduct gases from the proposed third furnace, is also planned at an estimated cost of Rs 36 crore.
SAIL is exploring the possibility of setting up a captive power plant of suitable capacity through a joint venture within the MEL plant area to produce cost-effective ferro-alloys. Investment for this project is expected to be around Rs. 1,200 crore.
