State owned Steel Authority of India will develop unused land of about 6,500 acres owned by Fertilizer Corp of India at its Sindri unit in Jharkhand , but will wait for liberal terms from the government before venturing with its proposal.
Mr CS Verma chairman of SAIL said that “There have been informal discussions with the fertilizer ministry and we are waiting for a clear proposal from them, including the rate at which the land can be given, before we take a final call.”
Mr Verma declined to comment on SAIL’s estimate of the land at Sindri. He added that “The size of the land is adequate for a 5 million tonnes steel plant.”
The government initiated the talks to revive the Fertilizer Corp unit which has been shut since 2002. The plan included various sale options before short listing the idea of giving the land to another state-owned enterprise. SAIL is also keen on building a steel plant at Sindri as it can be integrated with the company’s existing unit at Bokaro which is 60 km away and can also use ore from nearby mine at Gua.
According to people familiar with the talks, SAIL had insisted on the land at Sindri after unconfirmed reports that ArcelorMittal India , too, was planning to approach the government for permission to build a steel project at the site.
Mr Verma declined to comment on SAIL’s estimate of the land at Sindri. He added that “The size of the land is adequate for a 5 million tonnes steel plant.”
According to estimates, the cost of building a 5 million tonne steel plant is about INR 22,000 to INR 23,000 crore. While the talks are still on, people familiar with the matter say that the fertilizer ministry has asked SAIL to consider an option to build a fertilizer unit at the site.
Mr CS Verma chairman of SAIL said that “There have been informal discussions with the fertilizer ministry and we are waiting for a clear proposal from them, including the rate at which the land can be given, before we take a final call.”
Mr Verma declined to comment on SAIL’s estimate of the land at Sindri. He added that “The size of the land is adequate for a 5 million tonnes steel plant.”
The government initiated the talks to revive the Fertilizer Corp unit which has been shut since 2002. The plan included various sale options before short listing the idea of giving the land to another state-owned enterprise. SAIL is also keen on building a steel plant at Sindri as it can be integrated with the company’s existing unit at Bokaro which is 60 km away and can also use ore from nearby mine at Gua.
According to people familiar with the talks, SAIL had insisted on the land at Sindri after unconfirmed reports that ArcelorMittal India , too, was planning to approach the government for permission to build a steel project at the site.
Mr Verma declined to comment on SAIL’s estimate of the land at Sindri. He added that “The size of the land is adequate for a 5 million tonnes steel plant.”
According to estimates, the cost of building a 5 million tonne steel plant is about INR 22,000 to INR 23,000 crore. While the talks are still on, people familiar with the matter say that the fertilizer ministry has asked SAIL to consider an option to build a fertilizer unit at the site.
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