Steel Authority of India (SAIL) is considering setting up a 5 million tonne steel plant at Sindri fertiliser complex, a closed unit of Hindustan Fertiliser Corporation, under the administrative control of the fertiliser ministry.

SAIL chairman CS Verma, on the sidelines of an international seminar on sustainable growth, said SAIL was talking with the fertiliser ministry on taking over the Sindri plant and the response from the fertiliser ministry was positive. ?We will have to make a valuation of the assets of the Sindri plant, after which we can decide about setting up a steel plant there,? Verma said.

He said as a matter of rule to set up every 1 mt capacity, land requirement is 1.5 sq km. But to upgrade technology these days, a million tonne capacity can be put up on 0.8 sq km area. Accordingly, the Sindri fertiliser unit can accommodate a 5 mt plant, Verma said. He, however, didn?t put a timeline for taking over the Sindri unit.

On joint ventures with Posco and Kobe steel, Verma said the detailed project report (DPR) was being prepared and the companies would decide on the JV formats after the DPR was ready. While SAIL has decided to form a JV with Japan?s Kobe steel to set up a new steel mill at Durgapur using ITmK3 technology, it has decided to set up a JV with Korea?s Posco for setting up a new steel plant at its Bokaro unit.

Verma said R3,000 crore would be spent on setting up a DRI unit, an electric arch furnace, coal dust Injection system and continuous casting at Jagdishpur, where Kobe is also supposed to join. SAIL took over Malvika Steel?s unit at Jagdishpur in Uttar Pradesh in 2009 and is a setting up a new unit at the site after diminishing the old one. SAIL, at Jagdishpur, intends to make auto grade steel, most of which is currently imported, Verma said.

Japan?s recent disaster has so far not affected the collaboration initiatives of SAIL and Kobe Steel, since Kobe has remained unscathed, Verma said.

He said, at the completion of IISCO?s R14,000-crore modernisation and expansion, a 3 mt steel plant would be commissioned in December this year.

However, with SAIL on expansion mode, iron ore requirements would move up from the present 24 mt to 42 mt tonne over a period of five years and the Chiria mines, in which SAIL would invest R5,000 crore, would provide the iron ore security by producing around 15 mt per annum over a period of five years.

SAIL expects to start production from the Chiria mines in another three years and the production initially would be around 3 mt per annum, Verma said.

He said for coking coal security, SAIL is depending on ICVL?s MoU with the Indonesian government signed on January 24. The MoU has allowed Indian geologists to conduct survey of 3-4 mines to find out the estimated reserves and coal quality. After determining the reserves and quality, ICVL would zero in on a mine by end of this year, Verma said.