Date:11/05/2006 URL: http://www.thehindubusinessline.com/2006/05/11/stories/2006051101790700.htm

Back DSP in talks with Railways for developing high-grade wheels

Ambarish Mukherjee

Aims for 97 per cent share of finished steel output by 2012

Durgapur , May 10

Durgapur Steel Plant (DSP) of Steel Authority of India Ltd (SAIL) is in talks with the Railways for developing high-grade railway wheels and axles that would be required for the rolling stock on the proposed dedicated freight corridor of the Indian Railways.

"We have the expertise and we are already supplying broad gauge and metre gauge loco wheels to them. Even when the metro Railway's requirement would increase, we are open to manufacture them if the demand is commercially feasible," said the DSP Managing Director and Director (Personnel), Mr S.K. Roongta.

In 2005-06, the company had supplied 65,000 wheels to the Railways which was its total production. "In 2006-07, we would be producing 1.2 lakh wheels. And after meeting the full demand of the Railways, if there is excess production we would be exploring the export market also," he said.

Higher price realisation

Mr Roongta also pointed out that the price realisation from wheels and axles is much higher compared to other products. While hot rolled steel commands an average price of Rs 24,000-30,000 per tonne, wheels and axles get approximately Rs 65,000-70,000 per tonne.

Mr Roongta said DSP is the first among the four SAIL plants that has been able to chalk out a very comprehensive manufacturing policy.

Production hike

Simultaneously, the company management has chalked out plans to increase the share of finished steel in the plant's total output. As of now, 46 per cent of DSP's total output is finished steel and 54 per cent is semi-finished like billets and blooms.

"According to the long-term plans, the target is to increase the share of finished products from the existing 46 per cent to around 97 per cent of the total output by 2011-12. And this would be achieved by increasing the output of finished steel," Mr Roongta said.

Casting of billets

"We have already started continuous casting of billets. This saves a lot of cost because we are putting hot metal straight into casting. Otherwise it would had to be cooled and then again reheated to give the shape," he said, pointing out that this saves a lot of energy.

DSP is currently setting up a 0.85-million-tonne bloom caster that is expected to go on stream during the current fiscal.

"As of now, nearly 60 per cent of hot metal undergoes continuous casting and areconverted into billets. Once the bloom-caster comes up, almost 100 per cent of the hot metal would be continuously cast," he said.

The company is also setting up two new bar mills with an investment of Rs 450 crore each that would become operational by 2011-12.