Tuesday, 19 Jul 2011
Maharashtra Elektrosmelt Ltd, the 99.12% subsidiary of Maharatna Steel Authority of India Limited, has been merged with SAIL.
The process of merger of MEL with SAIL was started in April 2006 and culminated with the receipt of the final order from the Ministry of Corporate Affairs on June 14th 2011. The final order of amalgamation of MEL with SAIL has been filed with the Registrar of Companies at Delhi and Mumbai. It has been decided that all the public shareholders of MEL shall be allotted SAIL shares in a swap ratio of 1.7:1.
Located at Chandrapur in Maharashtra, MEL is a strategically important unit for SAIL as it meets the requirement of manganese based ferroalloys, a key input for iron & steel making. MEL presently has the capacity to produce about 100,000 tonnes of manganese based ferroalloys through the submerged arc furnace route. The merger of MEL with SAIL is expected to align the development of MEL and related investments in line with the ferroalloy requirements of SAIL.
SAIL has already made plans for the expansion of MEL. In this regard, Mr CS Verma chairman of SAIL said that commensurate with SAIL’s further expansion plans, MEL’s expansion will be pursued for meeting the full requirement of ferroalloys of the SAIL steel plants. To cater to the additional requirement of ferroalloys of SAIL plants in future, plans have been drawn up for installation of a third SAF with capacity to produce about 90,000 tonnes of ferromanganese at an estimated cost of about INR 200 crore.
The process of awarding of contract to the successful bidder is likely to be completed shortly. Addition of a 4 MW capacity power plant (steam turbine & generator) which will use byproduct gases from the proposed third furnace is also on the anvil at an estimated cost of INR 36 crore.
SAIL is also exploring the possibility of setting up a captive power plant of suitable capacity through the joint venture route within the MEL plant area in order to produce cost effective ferroalloys. Investment for this project is expected to be around INR 1,200 crore.
Maharashtra Elektrosmelt Ltd, the 99.12% subsidiary of Maharatna Steel Authority of India Limited, has been merged with SAIL.
The process of merger of MEL with SAIL was started in April 2006 and culminated with the receipt of the final order from the Ministry of Corporate Affairs on June 14th 2011. The final order of amalgamation of MEL with SAIL has been filed with the Registrar of Companies at Delhi and Mumbai. It has been decided that all the public shareholders of MEL shall be allotted SAIL shares in a swap ratio of 1.7:1.
Located at Chandrapur in Maharashtra, MEL is a strategically important unit for SAIL as it meets the requirement of manganese based ferroalloys, a key input for iron & steel making. MEL presently has the capacity to produce about 100,000 tonnes of manganese based ferroalloys through the submerged arc furnace route. The merger of MEL with SAIL is expected to align the development of MEL and related investments in line with the ferroalloy requirements of SAIL.
SAIL has already made plans for the expansion of MEL. In this regard, Mr CS Verma chairman of SAIL said that commensurate with SAIL’s further expansion plans, MEL’s expansion will be pursued for meeting the full requirement of ferroalloys of the SAIL steel plants. To cater to the additional requirement of ferroalloys of SAIL plants in future, plans have been drawn up for installation of a third SAF with capacity to produce about 90,000 tonnes of ferromanganese at an estimated cost of about INR 200 crore.
The process of awarding of contract to the successful bidder is likely to be completed shortly. Addition of a 4 MW capacity power plant (steam turbine & generator) which will use byproduct gases from the proposed third furnace is also on the anvil at an estimated cost of INR 36 crore.
SAIL is also exploring the possibility of setting up a captive power plant of suitable capacity through the joint venture route within the MEL plant area in order to produce cost effective ferroalloys. Investment for this project is expected to be around INR 1,200 crore.
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