Mecon has recommended a plan for Essar Steel's proposed expansion project. The consultancy firm has drawn up a plan that would enhance Essar's steel capacity to 3.6 million tpa from the present 2.4 million tpa. Mecon has stated that the plan could be executed within 18 months from finalization of engineering details.

Mecon has suggested that capacity expansion could be made possible by improving the use of the third electric arc furnace and installion of balancing equipment for the rolling mill. The project, which is subject to approval of lenders as per the corporate debt restructuring package, would cost around Rs.700 crore.

SMS Demag of Germany, the supplier of the existing rolling mill, would be supplying the balancing equipment. It would also supply the additional slab caster that would be required to process the increased volume of hot metal following the revamping of the third electric arc furnace.

The project is currently in the nascent stage. Its implementation would depend on approval from the CDR empowered group, which as of now, was not in place.

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