SPONGE IRON INDIA LIMITED
Particulars of the Organization, functions and duties:
Sponge Iron India Limited was initially incorporated on March 18, 1975 as subsidiary of the A.P. Industrial Development Corporation, an Undertaking of Government of Andhra Pradesh. The Company was incorporated to establish the techno-economic feasibility of producing sponge iron from Iron Ores and Non-coking Coal available in various parts of the Country and producing steel through Direct Reduction – Electric Arc Furnace Route. Due to the National importance of the project the share held by APIDC were transferred to Govt. of Andhra Pradesh to enable take over of the Company by the Government of India. The Company is a Schedule-C Company under the administrative control of the Ministry of Steel, Govt. of India. The Authorised and paid up Equity Share Capital of the Company is as follows:
Authorised Share Capital : Rs. 66.0 Crores
Paid up Equity Share Capital : Rs. 65.10 Crores
Govt. of India : Rs. 64.27 Crores
Govt. of Andhra Pradesh : Rs. 0.83 Crores
The main objects of the Company as stated in the Memorandum and Article of Association are as follows:
1. To produce, manufacture, purchase, refine, import, export sell and really to deal in naturally occurring ores and agglomerated iron ores pre-reduced forms of iron such as sponge iron, grey iron, alloy iron, ductile iron, S.G.. Iron, malleable iron, alloy and special iron and steel in all forms and/or bye-products thereof.
2. To carry on the trades or business of iron ore processors, iron masters, steel makers, steel converters, rolled steel makers, miners, smelters, engineers, tinplate makers and iron founders in all their respective branches and manufacture of all kinds of agglomerated and pre-reduced form of iron such as sponge iron, grey iron, alloy iron, ductile iron, S.G. iron, malleable iron, alloy and special steel iron, steel products such as bars, rods, and other sections, sheets and plates, wires and wire products of iron, steel and other metals.
3. To search for, get, work, make merchantable, sell and deal in naturally occurring iron ores, agglomerated iron, pre-reduced form of iron such as sponge iron, grey iron, alloy iron, ductile iron, S.G. iron, malleable iron, iron alloy and special steel, steel and other metals, old or new, coal, coke, slag, slag granules, minerals and substances.
4. To carry on the business of iron founders, coke manufacturers, mechanical engineers, manufacturers of agricultural implements and other machinery, tool makers, brass founders, metal workers, boiler makers. Mill wrights, machinists, iron and steel converters, smiths, painters, metallurgists, electrical engineers, water supply engineers, manufacturer of brass, copper and other metals and to buy, sell, manufacture, repair, convert, alter, let on hire and deal in machinery implements, all sorts of metal scrap and hard ware and hollow ware of all kinds. To act as agents and brokers for sellers, buyers, exporters, importers, manufacturers, merchants, tradesmen, insurers and other and generally to undertake and carryout agency work of any kind whatsoever and transact all manner of agency and commission business.
The primary objective of the Company was to develop an indigenous technology for the production of sponge iron using iron ore and non-coking coal abundantly available in the country. To this end a demonstration plant of capacity 30,000 tpa of sponge iron with rotary kiln as the main reactor was set up in 1980 at Paloncha in the district of Khammam, Andhra Pradesh with UNDP assistance based on Lurgi technology. Considerable in-house R&D work with Indian iron ore and non-coking coal led to total indigenisation of the technology and another unit of same capacity was set up by the side of the first unit using the SIIL developed technology and 100% indigenous equipment. SIIL provided consultancy for setting up 5 plants in India and 2 plants abroad. It also developed technologies like cold briquetting of sponge iron fines, continuous charging of sponge iron, waste heat recovery system for power generation and has established the Submerged Arc Furnace – sponge iron route to pig iron production. The SAF – sponge iron route however did not succeed economically though this pilot project was technically successful. In an attempt to use the SAF built as a pilot unit, it was converted into a Silico Manganese producing unit with a marginal investment of Rs. 1.89 Crore. However, due to low market price and high cost of production, this unit could not be operated and the company has decided to sell off this unit.
The Organisation Chart of the Company is Annexed.