It is reported that Steel Authority of India Ltd’s Rourkela Steel Plant has placed orders for IN 11,800 crores so far and is in the process of re tendering for a new plate mill.
Mr SS Mohanty ED of RSP said that the original investment planned was to the tune of INR 6,800 crore but projects worth INR 11,800 crore had been approved for the expansion project.
Mr Mohanty said “Given today’s prices and 2007-08, which is when the orders were placed, cost escalation is to the tune of 40%.”
He said that orders were placed towards the end of 2007 and beginning of 2008, before the downturn. Hence RSP could not take advantage of the fall in equipment prices.
However, the plant would see some savings for the plate mill. He said that “The only item for which there would be re-tendering, was the plate mill.”
At present, the capacity of the plant is two million tonnes, which would increase to 4.5 million tonnes by 2011 end.
(Sourced from http://www.steelguru.com/news/index/2009/09/12/MTExMzYx/Orders_for_INR_11%252C800_crores_placed_for_SAIL_RSP_modernization.html)
Friday, September 11, 2009
Orders for INR 11,800 crores placed for SAIL RSP modernization
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