Title - Bhilai Steel Plant bets big on Rowghat mines

Bhilai Steel Plant (BSP)’s first unit was commissioned in February 1959. Four decades on, BSP is the most prolific revenue generator for Steel Authority of India Ltd (SAIL).During April-September this year, when there is a slump in the steel sector, BSP posted a profit of Rs.1,269 crore, that is, 53 per cent of SAIL’s half-yearly profit.In an interview to The Hindu , its CEO S. Chandrasekaran discusses the challenges and the prospects of BSP. Excerpts:

BSP is planning an elaborate modernisation and expansion (M&E) plan. Can you throw some light on this?

SAIL is in the process of modernising its production units, raw material resources and other facilities to maintain its dominant position in the steel market. As an integral part of SAIL’s growth plan, projects are being executed for expansion and modernisation, after which Bhilai’s capacity would be enhanced to 7.5 million tonnes of hot metal and 7 million tonnes of crude steel from 5 million tonnes of hot metal and 4.5 million tonnes of crude steel. The basic idea of M&E is to consolidate the number one spot for BSP by adopting energy-efficient eco-friendly technology.

What would be the projected budget for this?

It is around Rs.19,000 crore for all the ongoing projects in Bhilai.

Presumably, achieving objectives will depend to an extent on accessing iron ore from fresh mines. While new mines have been allotted in Kawardha and Rowghat is on pipeline, what about the existing mines in Dalli Rajhara? What exactly is the life of the mines?

The balance reserve in Dalli Rajhara is about 80 million tonnes as on date. But what is significant is as we go deep inside (the mine) the quality of ore starts deteriorating and the silica percentage increases. So, 80 million tonnes of ore will not sustain us as many years as it used to when it was a fresh mine.

Extraction of iron ore from Rowghat, known for having good quality ore, is an important component of modernisation. What is the present budget for constructing the rail-road from Rajhara to Rowghat and extraction of ore from the mines?

It is around Rs.5,000 crore out of which, about Rs.800 crore is for the rail-road between Rajahara and Rowghat, and about Rs.4,200 crore is for development of mines and associated facilities, for example, crushing, screening and loading at Rowghat. (The amount is outside the modernisation budget.)

BSP is funding the barracks of the paramilitaries, as Rowghat is deep inside the Maoist-controlled areas. What is the size of the funding?

Rowghat is very important for us, and the rail-road between Rajhara and Rowghat, being constructed by Indian Railways, has to come up fast. This would also result in the prosperity for the entire region and, eventually, would benefit the local residents. Therefore, we are extending support to help early execution so that SAIL-BSP and the people living in the nearby areas are benefited.

A 95 km-long rail-road followed by substantial mining will witness huge displacement. What is the compensation and rehabilitation policy of BSP (or SAIL)?

Displacement is likely to happen in the process of the construction of the rail-road between Rajhara and Rowghat, which is being done by the Indian Railways.

As such, the onus is on Indian Railways to provide the compensation. However, SAIL-BSP would extend support in education /training of the deserving residents to make them employable. Over and above this, extensive CSR (corporate social responsibility) activity, would be carried out on a regular basis to improve their quality of life.

Bhilai has substantially reduced its permanent workforce over the years. Is it a policy that retired positions will not be filled?

Policy to recruit ‘one in place of another’ has been annulled long back. Now, recruitment takes place in three areas. For new plants and to fill up a percentage of the posts created due to retirement of employees. Besides, the skilled positions can not remain vacant indefinitely.