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Tapan Chakravorty
Ranchi, July 3: Steel Authority of India Ltd (SAIL) has received a contract from National Iron & Steel Company, the ailing West Bengal government undertaking located at Belur in West Bengal, to put up a bar mill.
The bar mill, which will cost Rs 4.5 crore and make 30,000 rolled products per annum, is being set up to revive National Iron which stopped operations several years ago. Centre For Engineering & Technology, Ranchi and Durgapur Steel Plant of SAIL will jointly instal the mill.
The erection work of the mill will be completed by January next year. According to the products profile, the bar mill will produce especially CTD bars ranging in sizes between 10mm and 32mm on a two-shift basis.
According to SAIL sources, the entire work will be carried out in six packages--reheating furnace package, electric motor package, works package, revamp of cranes, procurement of rolls and procurement of 1000 KVA transformer.
National Iron was established in 1954 but due to various problems it was closed inmid-70's. Subsequently the Government of India took over the company which finally came to the West Bengal government in 1984.
The company had been running at a loss and in order to revive it, a Calcutta-based consultancy firm, UCPIL, drew up a revival plan in 1987. After the completion of major civil work, purchase of some new equipment and modification of some facilities, the revival work was suspended in 1991 due to lack of funds.
National Iron has so far spent Rs 1.5 crore on the revival project. In the past the company had 10 thousand employees and the number has gradually been reduced to only 634. The average age of the employees is 49 and most of them are now idle due to the non-functioning of the plant.
The state government is spending Rs 3.5 crore annually towards the salaries and wages of the employees.A source close to National Iron told The Financial Express that the company is considering selling part of its surplus land to fund its revival plans. The plant has 104.7 acres ofland out of which 45.42 acres are surplus and considered prime land being located very close to the Belur railway station.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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