The Union steel ministry has in principle
approved a Rs.1,200 crore capital investment programme for Salem Steel Plant, a
division of Steel Authority of India.
The plan involves expanding SSP's cold rolling
capacity to 1.5 lakh tpa and setting up a steel melting shop, as a means of
backward integration.
As of April 2005, SSP was in the process of
preparing a project plan for setting up a steel melting shop that would enable
it to source slabs for further processing (cold rolling.)
SSP, the finished steel division of SAIL, has to
rely on SAIL's four integrated steel plants and even others, for sourcing steel
slabs. The melting shop could reduce SAIL's external dependence on feedstock.
While the steel ministry's approval is in place,
the project awaits final clearance by the SAIL board.
Also See:
Salem Steel Plant
may integrate backwards (23-Apr-05)