Malvika Steel to be operational in two years

New Delhi: The erstwhile Malvika Steel at Jagdishpur Industrial Area, Uttar Pradesh, shut for 10 years will be rebuilt and operational in two years.

Construction on the project launched by the Minister of Steel, Mr Ram Vilas Paswan, is to start soon.

The Usha Group promoted Malvika Steel produced pig iron for about two years before it was shut down in 1998. The assets of the company were taken over by SAIL for Rs 209 crore at an auction. An estimated investments of Rs 300 crore is required in the plants, says a SAIL release.

Detailed study is to be undertaken before the product mix is finalised. Before its closure the former promoters had plans for a steel melting shop, caster, oxygen plant, sinter plant and rolling mill. It operated, at that time, 2 x 350 cubic metres blast furnaces, 2 x 1,200 tonnes per day pig casting machines and a 7.8 MW captive power plant.

Mr Paswan said that the plant was expected to start operation on January 26, 2011. He pointed out that SAIL had nurtured several sick units which were making significant contributions today.