Kerala government owned, Steel Complex Limited (SCL) and the Steel Authority of India Limited (SAIL) have signed a Memorandum of Understanding (MoU) for starting a joint venture. The MoU was signed in the presence of Union Steel Minister Ram Vilas Paswan and Chief Minister V S Achuthanandan.

According to the pact, SCL will become a 50:50 JV with SAIL pumping in funds for its modernization and tackling management control. Currently, the state government holds 93.2% stake in SCL while the rest is with private individuals.

It is the first time that SAIL is investing in the state which has a huge demand for steel for projects like the Vallarpadam transhipment, Ezhimala Naval Academy and the proposed Vizhinjam Port project.

Steel Complex Ltd. (SCL) is the only mini steel plant in Kerala. The Company was originally promoted as a joint sector between the Kerala State Industrial Development Corporation Ltd. (KSIDC) and a private entrepreneur in 1969. SCL set up its mini steel plant in 1972 with installed capacity of 37,000 tonnes p.a.

As part of rehabilitation package, KSIDC raised its shareholding in SCL to more than 50% ad thus SCL became the subsidiary of KSIDC in 1979. In 1983 SCL undertook expansion scheme by adding the third electric arc furnace, by which the production capacity was raised to 55,000 tonnes p.a.

The rolling mill at the SCL, which currently produced 2,200 tonnes of steel a month, will raise its capacity to 4,200 tonnes with an additional investment of Rs 200 crore from the joint venture.