The Hindu Business Line : Novel approach in Vizag Steel's phase I expansion

EVEN the sketchy information that is, of late, available on the new units that Rashtriya Ispat Nigam Ltd proposes to put up as part of the Vizag Steel Plant's phase I expansion indicates that the exercise, when undertaken, should result in a major gain.

The new units being contemplated by RINL? A sintering facility, two LD converters, a billet caster, a relatively small capacity power plant and a rolling mill. As a short-term measure, the company has planned a new coke oven battery.

It has also made arrangements with the Andhra Pradesh Government (which include extending a loan to the latter) for getting additional water from the Yeleru reservoir.

The point to be noted is that the proposal does not include setting up of a blast furnace to enhance hot metal production. And yet, Vizag Steel Plant will have additional hot metal to feed the post-phase I additional steel melting, billet making and rolling capacities.

How will it have additional hot metal? The answer lies in its move to use a large quantum of gas from the Krishna-Godavari find, which is to be tapped by Reliance.

The Vizag Steel Plant has two blast furnaces of 3,200 cubic metre volume each. It has already surpassed the rated capacity of 3.4 million tonnes (m.t.). The hot metal production level in the last financial year confirmed that the two blast furnaces, which have since been relined, can be worked well beyond the rated capacity. The hot metal output was 3.48 m.t. in 2001-02, which rose to 3.94 m.t. in 2002-03.

The hot metal production level in the last financial year confirmed that the blast furnaces could be worked well beyond the rated capacity. That explains why the RINL management has made bold plan for 4.25 m.t. of hot metal in 2003-04.

With injection of gas in the blast furnaces, the management hopes to augment hot metal output to five m.t. Simultaneously, there will be a sizeable drop in coke consumption. This is the reason why the phase I expansion proposal does not provide for the third blast furnace.

The plant now has three coke oven batteries, one sintering facility, three LD converters and 6 x 4 strand bloom casters in the only steel melting shop and three rolling units — light and medium merchant, wire rod mill and medium merchant and structural mill.

When the phase I expansion materialises, it will have two sintering facilities, five LD converters (possibly, the two new units and the proposed billet caster will constitute the second steel melting shop) and four rolling mills.

Post-phase I expansion with natural gas as a key input, its capacity for liquid steel and saleable steel will go up to 4.7 m.t. and 4.2 m.t. respectively. In fact, with the augmentation of LD converter strength, the management can even think of reducing hot metal diversion for pig iron production.

A relevant question is: What will be the new rolling facility for? The RINL team led by the new CMD, Mr B.K. Panda, is understood to be veering towards one more wire rod mill with higher diameter range and coiling than what the existing wire rod mill is equipped to manufacture. Obviously, this must be based on market assessment. Which means that if the RINL top brass opts for such a facility, the plant will have two wire rod mills.

Use of gas as a major energy source, when materialising, will mark a new chapter for the Vizag Steel Plant, which is the country's first shore-based integrated steel facility and which is the last greenfield steel venture to come up in the public sector.

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