The modernisation of Indian Iron and Steel Company, the country’s oldest steel plant here, is to be completed by early next year.
According to company sources, the modernised plant with an enhanced production capacity is likely to be inaugurated by Prime Minister Manmohan Singh sometime around March next year.
The modernisation work had started on December 24, 2006 with a budget of Rs 9,000 crore. The cost has since escalated to Rs 17,000 crore, sources said.
Production capacity at IISCO would be more than 2.5 million tonnes per annum from the present 0.4 million tonnes.
The plant's performance had started declining in the 1960s after it suffered from technological obsolescence and failed to catch up with the latest in steel-making technology.
Adding to its woes were the persistent trade union problems which forced the government to take over the management of the company in July 1972. Thereafter, it was nationalised and made a wholly owned subsidiary of SAIL.
Among the new facilities to be installed are a large-volume blast furnace, coke oven battery, two sinter plants, three converters with continuous billet and beam blank/bloom casters, heavy section mill of 0.6 million tonne capacity and wire rod & bar mill of 1.2 million tonne capacity.