SAIL to invest Rs100 crore to revive Malvika Steel
Moneylife Digital Team 26 July 2010

New Delhi: State-owned Steel Authority of India Ltd (SAIL) today said it will invest Rs100 crore to revive its Uttar Pradesh unit, formerly known as Malvika Steel, which the steelmaker acquired last year, reports PTI.

"The total cost of Jagdishpur SAIL Unit's (JSU) phase-1 revival has been estimated to be Rs100 crore," the company said in a statement here. SAIL acquired the defunct Malvika Steel for Rs209 crore last year and rechristened it as JSU.

As part of the revival plan, SAIL will set up a steel mill at a cost of Rs46 crore to produce items required by infrastructure and construction companies.

"The entire team of JSU has to work with exemplary dedication, zeal and commitment to fulfil the objectives of acquiring the unit," said steel secretary Atul Chaturvedi, who along with SAIL chairman C S Verma laid the foundation stone for the mill.

The TMT bar mill has an annual production capacity of 1.5 lakh tonnes per annum (TPA).

"The proposed facilities and product-mix envisaged in phase-1 also include a 10,000 TPA cold forming line and a 13,000 TPA corrugation line," the statement added.

Verma said SAIL also envisages resumption of integrated iron and steel production at JSU under the second phase of its revival plan, for which a feasibility report has been prepared.

Going forward, SAIL said it will also set up a 475-MW gas-based power plant at Jagdishpur through a joint venture.

"The process for identification of a suitable partner has started," it added.
The country's largest steel-maker plans to enhance its annual production capacity to about 23 million tonnes from the current output of around 14 million tonnes with an estimated investment of Rs 70,000 crore by 2012. SAIL plans to further enhance its annual capacity to 60 million tonnes by 2020 to cater to anticipated demand on account of rapid growth of the infrastructure sector.

Comments
nps1961
1 year ago
Sir,
I have 400 share of malvika Steel Ltd. Please suggest me about share of malvika Steel Ltd.
dharmendrahajela8
3 years ago
Sir
Please give me answw
dharmendrahajela8
3 years ago
Sir sir I have 400 malvika steel share I was highly pleased to read your article on SAIL to invest to revive Malvika steel.plwasw advice me regarding what will happen to my shares aa I have not recived any news from SAIL and what I should further do
.thanks
kumarshubhamsk161
Replied to dharmendrahajela8 comment 1 year ago
Sir, Any update for shares I have also Malvika Steel ltd. How can sale no one support.
Vispi Bhathena
1 decade ago
Sir,I have1500 Malvika Steel shares, I was highly pleased to read your article on SAIL to invest to revive Malvika Steel.
Please advice me regarding what will happen to my shares as I have not received any news from SAIL and what I shoud further do.
Thank You.
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