``The modernisation programme will be taken up in phases as we want to fund the entire project from internal accruals,'' he said. The company on Thursday announced the commissioning of the Thermax system under licence from Hennigsdrofer Stahl Engineering GmbH, as a first step of the modernisation, at a cost of Rs 2 crore. This will help increase the TMT bar production capacity from the existing 4,000 tonnes per month to 7,000 tonnes.

SRMB is the fourth manufacturer of TMT bars in India, the other three being the Steel Authority of India Ltd, Tata Iron & Steel Co and Rashtriya Ispat Nigam Ltd.

Asked whether the small company would be able to face competition from the steel majors, Mr Beriwala said, "SAIL's Bhilai and Durgapur plants and Tisco produce higher section of bars starting from 16 mm, whereas we will be producing 8 mm, 10 mm, 12 mm and 16 mm bars. Hence, there will be less scope for competition with them."

For the induction of technology, SRMB will have to pay H&K India, which transfers Thermax TMT technology to Indian companies, a royalty of Rs 10 per tonne for a period of five years and DM 75,000 to HSE. SAIL's Bhilai and Durgapur plants paid DM 240,000 each for the technology.

H&K India's vice-chairman and managing director RK Markan, who was also present on the occasion said Durgapur Steel Plant paid Rs 3 crore royalty for a period from 1992 to 1997.

He said this TMT bar is much superior of conventional CTD bar or tor steel as it has extra high strength, higher elongation, is more bendable, weldable and ductile, and is more corrosion, fire and fatigue resistant.