Sundaram Steel Pvt Ltd is planning to invest around ₹1,021 crore to convert its existing sponge iron unit at Balidih in Bokaro into an integrated steel plant. The expansion will increase the company's annual steel-making capacity from 1.5 lakh tonnes to 2.5 lakh tonnes, while sponge iron production is planned to rise from 1.8 lakh tonnes to 4 lakh tonnes. The project was discussed during a public hearing conducted by the Jharkhand State Pollution Control Board in Bokaro.
Steel capacity to rise by 1 lakh tonnes
The proposed project will add 1 lakh tonnes a year to Sundaram Steel's steel capacity, taking it to 2.5 lakh tonnes. The sponge iron capacity will see a much larger increase of 2.2 lakh tonnes annually, moving from the existing 1.8 lakh tonnes to 4 lakh tonnes. This will give the company a more integrated production setup instead of operating primarily around its existing sponge iron facility.
The expansion will include several new production facilities. The project plans to add new furnaces, a ladle refining furnace, a rolling mill and a submerged arc furnace, along with additional power-generation capacity. These additions are aimed at building the facilities required for the integrated steel operation at the Balidih unit.
Employment could increase significantly
The expansion is also expected to increase employment at the plant. Company general manager R P Sharma said direct employment could increase from the current level of around 661 people to 2,161, while the project is expected to provide indirect employment to more than 5,000 people. The employment numbers were presented during the public hearing on the proposed expansion.
Local employment and skill development were among the issues raised during the hearing. Villagers welcomed the proposed investment but also sought preference for local people in recruitment, along with skill-training opportunities. They also raised concerns around pollution control, water conservation and plantation measures as the plant expands.
Project still has environmental approval ahead
The proposed expansion was discussed as part of the environmental clearance process, with the public hearing forming part of the regulatory proceedings. The Jharkhand State Pollution Control Board said the proceedings, minutes, video recording and public comments would be compiled and forwarded to the authority responsible for granting environmental clearance.
This means the ₹1,021 crore investment is currently at the project and approval stage rather than being a completed expansion. The proposed capacity additions and new facilities will therefore depend on the completion of the required regulatory process before the project can move ahead fully.
More steel-making capacity coming up in Bokaro
The Sundaram Steel project adds another capacity expansion plan to Bokaro's already significant steel-making base. The district is home to major steel operations and has also seen capacity expansion plans from other producers. SAIL, for example, has an approved brownfield expansion plan for its Bokaro Steel Plant, while other private-sector investments are also being developed in the region.
For Sundaram Steel, the proposed project represents a move towards a larger and more integrated production structure. The increase in sponge iron, steel and power-generation capacity will also increase the company's requirement for raw materials and energy once the facilities are operational. For the local steel industry, the project adds another planned source of production capacity in eastern India.
Focus remains on moving up the value chain
The proposed investment is not simply an increase in sponge iron production. By adding furnaces, refining, rolling and submerged arc furnace facilities, Sundaram Steel is looking to establish a more integrated manufacturing operation at Balidih. The planned increase in steel capacity to 2.5 lakh tonnes per year, alongside the expansion of sponge iron production to 4 lakh tonnes, gives the project a broader production scope.
The next stage will depend on the environmental clearance process and implementation of the planned facilities. If completed as proposed, the ₹1,021 crore project will increase Sundaram Steel's production capacity while adding employment and supporting additional industrial activity around Bokaro.