SAIL plans Rs 1,000-cr expansion of ferro alloy subsidiary

SAIL proposes to invest about Rs 1,000 crore in expanding the capacity of its subsidiary and ferro-alloy producer Maharashtra Elektrosmelt Ltd (MEL).The plan includes setting up of two new furnaces at an outlay Rs 500 crore besides setting up a power plant consisting of two 45 MW at MEL at an investment of Rs 500 crore.

MEL is the country's largest manganese-based ferro-alloys producer with a product mix that includes both carbon ferro-manganese (FeMn) and silicon manganese (SiMn).At present, MEL meets SAIL's entire requirement of FeMn, one of the key ingredients to produce steel. About a third of SiMn, required by SAIL is met by MEL. Higher ferro-alloy production by MEL would go a long way in meeting the raw material security concerns of SAIL.