Pakistan Steel Mills (PSM) has sought federal government consent to spend around Rs 5 billion on revamping and modernisation of its infrastructure and increasing its production capacity, sources told Business Recorder here on Saturday.
They said that PSM has sent its proposals to the Ministry of Industries, Production for the upgradation of major departments of the plant. "Pakistan Steel intends to replace old equipment and infrastructure of three of its major departments ie hot strip mill, coke oven battery plant and steel making plant. This is likely to cost around Rs 5 billion," they said.
"The production capacity of PSM would be increased by 0.4 million tons to around 1.5 million tons per year, if Rs 5 billion is injected into its existing plants," sources added. They said that PSM was waiting for 'go-ahead signal'.
The implementation of the plan would enable PSM to stand in line with any modern steel plant in the world, sources said.. "Soon after receiving the nod from the authorities concerned, revamping process would get started," they added. They said that if the government allowed the PSM management to commence revamping of its major departments, the process would take at least two-and-a-half years to complete it.
The amount would be spent from its savings. Nevertheless, prior permission has to be obtained to inject such a hefty amount, they added. They said that tenders would have to be floated the huge work and the revamping process would be carried out in at least three phases. Sources said that PSM intends to start revamping process on its own, and all development and modernisation work would be carried out indigenously.
Pakistan Steel has paid Rs 18.6 billion as taxes and duties to the national exchequer during the last three years, and the amount would increase significantly when the mill would produce more 0.4 million tons steel products annually.
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