The Rourkela Steel Plant (RSP), a unit of Steel Authority of India Ltd (SAIL), has signed a contract with a consortium to establish a pellet plant with an annual production capacity of two million tons. The project will be executed on a construct, operate, and maintain (COM) basis.
RSP confirmed that the letter of award was issued on January 16, marking the official start of the initiative. The construction is expected to be completed within 24 months of signing the contract. Additionally, the plant will operate under a 20-year operation and maintenance (O&M) agreement, with an optional five-year extension subject to mutual agreement.
The new pellet plant is designed to optimize the use of ultra-fine iron ore, which is unsuitable for sinter production. The pellets, containing 63 per cent Fe, will enhance efficiency in blast furnaces by reducing slag rates compared to sinter, which has a lower Fe content of 54 per cent.
, a unit of Steel Authority of India Ltd (SAIL), has signed a contract with a consortium.){kind=link}