SAIL announced the Merger of Maharashtra Elektrosmelt (MEL) with itself

Steel Authority of India Limited (SAIL) announced on 18 July 2011, the merger of Maharashtra Elektrosmelt (MEL) with itself. SAIL also announced its plan to infuse around Rs.1500 crore for expanding capacity and putting up a power plant.

SAIL received the approval for merger of MEL from the Ministry of Corporate Affairs in June 2011, more than five years after it started the process.

Existing MEL shareholders is to get one share of SAIL for every 1.7 shares held in MEL. SAIL has 99.12 per cent stake in MEL.

MEL currently has around one lakh tonnes per annum manganese-based ferro alloys making capacity at its Chandrapur facility in Maharashtra. MEL uses submerged arc furnace (SAF) route for manufacturing the steel-making raw material. A third SAF with capacity to produce about 90000 tonnes of additional ferro-manganese is to be built at the plant at an estimated cost of about Rs.200 crore.

SAIL also announced its plans to set up a 4 MW power plant, using gas as a by-product from the proposed third furnace, entailing an investment of Rs.36 crore within the plant.