Crane crunch affects SAIL’s Bhilai expansion plan

28 November 2016

In what may further delay the modernisation and expansion of state-owned Steel Authority of India Ltd’s (SAIL) Bhilai Steel Plant, there is a short supply of cranes from vendor—Heavy Engineering Corp. Ltd (HEC).

HEC is also a state owned firm with heavy industries and public enterprises as its nodal ministry.

The expansion of the Bhilai plant is scheduled to be completed by December 2016, after which the capacity of the plant will go up to 7 million tonne (MT) per annum from the current 3.93 MT. It entails an investment of Rs.17,266 crore.

“HEC has failed to supply cranes to the Bhilai steel unit, which is much required for the project commissioning as well as at the operation stage. Discussions have taken place in this regard between the ministries of steel and heavy industries but no solution has come up till now,” said a senior government official requesting anonymity.

The project has already been delayed as significant packages of the modernisation-cum-expansion projects were either retendered or time extension had to be provided due to high-price bids by technology consortiums.

Ranchi-based HEC designs and manufactures heavy duty electric overhead cranes which are used in steel plants, the engineering sector, space research and other related sectors.

Another official, who also did not want to be named, said HEC was supposed to supply around 100 cranes to the company but few cranes have been supplied so far.

“These issues have been flagged off in many meetings between secretaries of steel and heavy industries. However, HEC has not been able to supply the desired number of cranes till now,” said the official, adding the expansion programme is likely to be delayed further as the deadline of December 2016 is approaching with no solution in sight.

The Bhilai steel unit is installing two rolling mills for production of high-quality long rails (260 metre length) and bars, and is phasing out old and energy-inefficient processes to reduce carbon footprint and cost of production.

According to a SAIL, the work for blast furnace complex, steel melting shop II, bar rod mill, lime and dolo plants, and power and blowing station is in progress.

However, in absence of cranes, these are partly finished and few still remain unfinished, said a third government official who also requested anonymity.

Source – VC Circle