Express News Service
ROURKELA: The proposed growth plan of the Rourkela Steel Plant (RSP) of SAIL to greater than double its manufacturing capability has come as a contemporary breath of air for all. However, the proposal that envisages capital expenditure of above Rs 30,000 crore to reinforce its sizzling steel manufacturing capability from the current 4.5 MTPA to 9.3MTPA can also be depending on early decision to land hurdles.
The proposal is pending approval of SAIL’s Corporate Office. With the Steel Ministry’s imaginative and prescient of augmenting nation’s metal manufacturing from the current 120 MTPA to 300 MTPA by 2030, the SAIL is devising technique to additional scale up manufacturing capacities of its built-in metal crops together with RSP. Accordingly, on SAIL’s advise, the RSP had submitted its plan about 10 months in the past.
Reliable sources mentioned whereas RSP’s financial and technical performances are very excessive to seize the growth alternative it’s fearful about land points because it wants round 2,000 acres of contiguous land parcels past its present boundary. The land parcels acquired many years in the past are beneath encroachment and never in bodily possession of RSP, sources mentioned.
In the monetary report of SAIL for 2021-22, the general public sector metal main has reported an all-time excessive internet or Profit After Tax (PAT) with Rs 12,015 crore. Incidentally, RSP’s internet revenue contribution was additionally an all-time excessive of about Rs 4,760 crore.
Sources additional mentioned RSP is the preferential alternative of SAIL resulting from its monitor document of well timed completion of the final modernization and growth initiatives between 2008 and 2013 with expenditure of about Rs 14,000 crore. The growth noticed RSP’s capability rise to 4.5 MTPA plant from 2 MTPA.
For the proposed capability growth, SAIL would borrow cash from the market and the crops going for growth would have the pre-condition of guaranteeing well timed operation of latest manufacturing models to keep away from paying excessive curiosity value, sources mentioned, including, if RSP fails to make sure encumbrance free land then different metal crops together with ISP and DSP or BSP may very well be the doable gainers.
It is learnt from RSP sources that the administration is severely pursuing the land situation with the Sundargarh district administration for the proposed growth. The then Rourkela ADM Dibyajyoti Parida in September 2021 had advised this paper that about 6,000 households must be evicted from 55 slums on RSP land and the administration was planning their rehabilitation with inexpensive housing scheme on PPP mode for which RSP would supply land. While a number of the slums are reportedly positioned inside RSP boundary, it could want about 2,000 acres extra in the direction of Barkani, Deogon and Jharbahal.
