The Cabinet Committee on Economic Affairs (CCEA) on 5 August 2011 approved Steel Authority of India's (SAIL's) proposal for revival of the Sindri unit of Fertiliser Corporation of India at an investment of nearly Rs 35000 crore. SAIL was selected on nomination basis for allocation of land to set up a steel, power and fertiliser plants at the site.
The proposed revival plan included setting up of a 5.6 million tonnes per annum (mtpa) greenfield steel making plant at an investment of Rs 26000 crore. The revival plan also included setting up of 1.15-mtpa fertiliser plant with investment of Rs 4450 crore. In addition, the plan envisaged setting up of a Rs 4000-crore power plant.
The total land available with FCIL at Sindri is 6652.6 acres, out of which about 5,481.6 acres will be made available for the project proposed by SAIL.
The entire project will be spearheaded through a special purpose vehicle (SPV) with a PSU character. Three subsidiaries will cater to the proposed steel, fertiliser and power plants. The Sindri project will create direct/indirect employment potential for more than 5000 people.
Cabinet’s approval to the revival plan decision paved the way for SAIL's plan to expand its production capacity in Jharkhand. The Union Cabinet decision will provide significant strategic advantage to SAIL.
Under the plan, the proposed steel plant will have a diversified flat product-mix catering to the highend steel market. With major growth expected from steel-using sectors like oil & gas, auto and power, SAIL will produce new products like auto-body grades.
While 4.2 mt capacity of the plant is proposed to be dedicated for production of hot rolled products, around 1.2 mt will be earmarked for cold rolled items.
Apart from the steel unit, a 1.15 mtpa gas-based urea plant is to be set up after dismantling and disposing of the existing urea plant at the site.