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SAIL Subsidiary MEL to Expand Ferro-Alloy Production
05/10/2011 - SAIL Chairman Mr. C.S. Verma has advised the management of SAIL subsidiary Maharashtra Elektrosmelt Ltd. to draw up an expansion plan targeting 100% fulfillment of SAIL’s integrated steel plants’ requirements for ferro-alloys.
Steel Authority of India Ltd. Chairman Mr. C.S. Verma has advised the management of SAIL subsidiary Maharashtra Elektrosmelt Ltd. (MEL) to draw up an expansion plan targeting 100% fulfillment of SAIL’s integrated steel plants’ requirements for ferro-alloys.
The company noted that higher ferro-alloy production by MEL would go a long way in meeting the raw material security concerns of SAIL’s integrated steel plants, which are currently expanding capacity. MEL, in Chandrapur, Maharashtra, is India’s largest manganese-based ferro-alloys producer with a product mix that also includes carbon ferro-manganese (FeMn) and silico-manganese (SiMn). The process of the company’s amalgamation with SAIL is in its final stage.
Mr. Verma, who recently visited Chandrapur to firm up MEL’s annual business plan, indicated that MEL’s expansion plan should include the installation of two new furnaces (the plan for installation of one 45-MVA submerged arc furnace is currently being finalized). The two new furnaces are intended not only to fulfill the post-expansion requirements of the SAIL plants, but also of other steel plants in India. The total investment outlay would come to about Rs. 500 crore.
Because power constitutes about 35-40% of the cost of producing ferro-manganese, SAIL is also planning to set up a power plant consisting of two 45-MW units at MEL. This will entail additional investment of around Rs. 500 crore.
Addressing a large gathering of MEL employees during his visit, Verma said that MEL should also explore the possibility of setting up facilities to produce ferro-nickel for the SAIL plants. Pointing out that MEL is on its way to becoming a SAIL unit, Verma assured that funds for expansion of MEL would not be a constraint, with SAIL extending full support.
Post-expansion requirement of ferro-alloys by the SAIL plants would be to the tune of 375,000 tonnes. At present, MEL meets the SAIL plants’ entire requirement of FeMn and about a third of the requirement of SiMn from two 33-MVA submerged arc furnaces. With addition of the 45-MVA furnace, production of SiMn would nearly double, but will still fall short of the SAIL plants’ total requirement. A fourth furnace would not only COVER the shortfall but ALSO provide capacity to meet SAIL’s future needs as well.
