The Steel Complex Ltd (SCL), a joint venture between Steel Authority of India Ltd (SAIL) and the Government of Kerala is ready to launch a new rolling mill in Kozhikoe on the Malabar Coast of the Southern Indian state of Kerala.
The new mill will open slightly later than scheduled and cost 65 crore (US$139 million) most of which was paid for by a loan from the Canara Bank and SAIL stumping up 10 crore (US$2.1 million) and the Keralan government paying 9.72 crore (US$1.7 million).
SAIL-SCL Kerala Ltd is the only minimill operation in the State of Kerala. The Kerala State Industrial Development Corporation and a private entrepreneur originally set up the company in 1969 and a mini steel plant opened on site in 1972 followed a decade later by and expansion scheme that included a third electric arc furnace, raising capacity to 55kt/yr of steel billet.
A financial crisis in the early nineties led to SCL being referred to the Board for Industrial and Financial Reconstruction (BIFR) and in 2008 an MoU with SAIL led to a 50% acquisition by the Indian steel giant and an eventual takeover of operations early in 2011.
The new rolling mill forms the cornerstone of the joint venture between SAIL and the Government of Kerala. When running the new rolling mill will have a capacity of 65kt/yr of TMT steel.