Bokaro to get 3rd greenfield steel plant
6 January 2016
The government's efforts to promote the state as an industrial hub will get a fillip as Bokaro will get its third greenfield steel plant, construction for which has begun in the Balidih Industrial Area.
At a time when most of the domestic steelmakers are facing financial crisis, BMW Industries Limited, owned by Kolkata-based industrialist RG Bansal, will install a 0.5 million tonne capacity steel plant on the land allotted by the Bokaro Industrial Area Development Authourity (Biada).
S K Singh, the company's project officer, said the project has started initially with a budget of Rs 300 crore. The company will generate employment for around 1,000 people directly while hundreds of local youths will be benefited indirectly, he added.
BMW Industries is already running a steel processing unit of prime materials in partnership with SAIL in the Balidih Industrial Area.
This will be the second steel plant after Electrosteel Steels Limited (ESL), which will come up within seven years. However, the district also has Bokaro Steel (BSL), a subsidiary of SAIL.
The company signed an MoU with the state government on April 2, 2005. But the process in obtaining clearances and other basic facilities, including electricity and water, delayed the construction. Even Biada had show caused BMW for delay on its part in installation of the plant in 2013, said sources.
"Construction of the boundary wall has begun on the 40 acres acquired in BIADA while sheds are also being installed. Our steelmaking technology will be Italian. We will primarily produce TMT and other steel products. The construction is likely to be completed within two years' time," said Singh.
BMW Industries has two more steel facilities in Kolkata and a cold rolling mill in Jamshedpur, which became operational in 2014. "The coming up of the mini-steel facility in Bokaro will boast the latest Italian technology-based rolling mill. BMW will be the first in the country to launch hi-tech rolling mill which will not only be eco friendly but also give the maximum output and quality with cost saving," Singh said.
The running of the steel facility will require 30MW electricity, for which they have initiated talks with Jharkhand State Electricity Board. The company will initially produce rebars and structures.
Singh said the major hurdle faced by the company is agitation led by local residents. Though the company has get land from Biada, but the local residents here are demanding jobs and creating issue for it.
"We have sought cooperation from the district administration to deal with the issues. We have a target to complete the installation process within 18 months time," he added.
With Electrosteel producing 2.51 MTPA and BSL running on 4.5 MTPA capacity, the new unit will increase production capacity of the district to about 7.5 MTPA in next few years.