Stating that the steel ministry had been working on the modalities of reviving the plant, Union minister of chemicals & fertilisers and steel, Ram Vilas Paswan, said the plant is expected to start operations by January 26, 2011.
It may be mentioned that the assets of Malvika Steel have been taken over by SAIL through an auction for Rs 209 crore and an estimated investment of about Rs 300 crore would be made over a period of time. Sharing his vision of reviving sick units, Paswan said SAIL, being the largest steel producer in the country, has always played a vital role in nurturing sick units such as the Visvesvaraya Iron and Steel Plant, Karnataka, Indian Iron & Steel Company, West Bengal, and Maharashtra Elektrosmelt Ltd, Maharashtra.
Talking about the steel industry scenario, Paswan said the high demand of steel in domestic sectors like infrastructure, automobile and real estate have given the industry a leg-up, and today India is now the fifth largest producer of crude steel in the world, with a capacity of 55 mt. Thanking the steel ministers efforts in reviving the sick unit, Rahul Gandhi, MP from Amethi, said the unit will usher in a new era of progress and prosperity in the region.