SAIL, RINL expansion hit due to soil condition, manpower crunch

NEW DELHI: Expansion and modernisation plans of state-owned SAIL and RINL were hit on account of factors such as unforeseen soil conditions, logistic problems and lack of skilled manpower, the government said on Monday.

"Modernisation and expansion plan of SAIL/RINL have been affected mainly due to unforeseen soil conditions, under estimation of quantities by consultants, logistic problems, inadequate mobilisation of resources by contracting agencies including PSUs like HEC, HSCL, EPI and BHEL and lack of deployment of technically competent/skilled manpower by the contractors," Steel Minister Beni Prasad Verma said in a written reply to the Lok Sabha.

Verma said that indicative investment of SAIL for the current phase of modernisation and expansion is Rs 61,870 crore, while a provision of Rs 10,264 crore has been made towards investment in existing mines under Raw Materials Division and development of Rowghat mines.

Both Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) have undertaken plans to enhance their present capacity of crude steel from 12.8 million tonnes (MT) to 21.4 MT and 3 MT to 6.3 MT respectively.

He said there has been no cost overrun except in ISP (IISCO Steel Plant of SAIL) expansion, which has been revised to Rs 16,408 crore against the earlier cost of Rs 14,443 crore due to increase in civil and structural work.

He said no cost overruns are expected for SAIL's other plants, or for RINL.

The production of crude steel by SAIL and RINL in 2012-13 has been 13.4 MT and 3.07 MT respectively, which is 104 per cent and 103 per cent of their installed capacity respectively.