A high-power team headed by TPE chairman VS Smirnov recently visited Burnpur for an on-the-spot study on the IISCO update programme, he said here.

The TPE team was now reworking the modernisation proposal and would submit its report to the Russian government soon, he said.

The implementation would depend on the response of the Russian government, he said and hoped it would be positive as IISCO has been made a more attractive package after its collieries and iron ore mines were transferred back to it.

TPE, which had earlier worked out a Rs 2,100 crore proposal, has now proposed an investment of Rs 800 crore for the first phase for the revamp, he said, adding this would ensure restoration of the productioncapacity from the present 0.4mt to 0.6mt.

Meanwhile, construction work for installation of twin hearth furnace had started on Wednesday in the existing steel melting shop in iisco. The step was in tune with the upgradation proposed by TPE, he said.

The official said the twin hearth furnace being installed at a moderate cost of Rs 20 crore would provide maximum utilisation of in-house facilities.

About 50 per cent of the fabrication work would be carried out in the existing plant shops, while all castings including machining would be done at IISCO's kulti works, he said.

The use of obsolete open hearth process of steel making was the main problem for IISCO, which is required to lower the production cost by at least Rs 1,000 per tonne with technological upgradation to be able to compete in the market and generate funds for further growth and development, he said.

SAIL chairman Arvind Pande has in a recent ultimatum said the company was no more in a position to provide Rs 400 crore subsidy to IISCOannually.