Amethi, Feb 27 : The launching of project for rebuilding of steel plant erstwhile Malvika Steel Limited, a division of Usha (India) Limited) will be held today at Jagdishpur Industrial Area, Amethi.

Steel, Chemicals and Fertilizers MInister Ram Vilas Paswan, Rahul Gandhi, Member of Parliament; and Jitin Prasada, Minister of State for Steel will be present on the occasion.

The steel plant, spread over an area of about 740 acres, was acquired by the Steel Authority of India Limited (SAIL) in an auction held under aegis of Delhi High Court at a price of Rs. 209 crore.

As per preliminary estimates, SAIL will invest around Rs. 300 crore to make the plant viable. Thus, the total investment by SAIL in this venture would be more than 500 crore, which is the largest single investment in the steel sector in the State of Uttar Pradesh.

The main strengths of the plant are: (i) located on a major highway and rail route; (ii) adequate flat land for a well laid out steel plant and township; (iii) proximity to a perennial water source; (iv) proximity to vast consuming centers in Uttar Pradesh small pig size (10 kg) preferred by foundaries; and (v) most of the civil works, structural works and major equipment for the major facilities are available. (ANI)