Steel ministry to help SAIL for revival of Jagdishpur unit

Jagadishpur : Indian steel minister Mr Beni Prasad Verma said the Indian government is exploring options to revive Steel Authority of India Limited's Jagdishpur unit, formerly Malavika Steel, in Uttar Pradesh after the petroleum ministry rejected a request for allocating gas to it.Mr Verma told PTI that "The steel ministry had requested petroleum and natural gas minister Mr S Jaipal Reddy for gas allocation to the unit. Our demand has been rejected as steel is not the priority for gas, as power and other sectors. However, we are exploring other options for the revival of Malvika Steel.”

Steel Authority of India Ltd has committed INR 10,000 crore for the revival of the unit, which will also have a 1,050 MW power plant. The unit in Amethi is stuck due non availability of gas and the steel ministry had sought allocation of 2.1 million metric standard cubic metre per day gas from the KG D6 basin.

State run SAIL had bought the private unit at Jagdishpur, the former plant of Malavika Steel in 2009 and plans to convert it in an integrated plant with an annual capacity of 2 million tonnes. Earlier, a joint task force for development of the unit was constituted at the behest of the Steel Ministry which was holding discussions with Kobe Steel of Japan for developing phase II of the unit.