Shyam Metalics adds two more railway lines to its Pandloi steel plant

28 May 2024 , 11:37 AM

Shyam Metalics and Energy Limited (SMEL) has completed the addition of two more railway lines to its integrated steel plant in Pandloi, near Rengali in Odisha’s Sambalpur district, on Monday, bringing the company closer to its long-term aim of sustainability.

The business, which also comprises a coal washery and a power plant, has experienced tremendous growth in recent years, highlighting the need for improved rail facilities to manage the increasing flow of raw materials and completed goods.

Previously, the factory used two dedicated railway lines. The newest expansion, finished in 2023, has increased this amount to four lines, according to SMEL’s media release.

This includes a lead line from the Rengali station, three branch lines and an engine escape route.

Moreover, the project, which was initially approved by the Indian Railways in 2015, now has fully functioning overhead electrification, according to the business.

Brij Bhushan Agarwal, SMEL’s Vice Chairman and Managing Director, emphasised the significance of this development, saying, The expansion of the rail infrastructure is a testament to this commitment, and the planned addition of a waggon tippler by 2028 will further solidify SMEL’s position as a leading player in the steel industry.

The plant’s improved rail infrastructure now transports more than 110 rakes every month. While this is a significant improvement, the company says the existing system can only handle about 60% of the additional demand for raw materials and finished items.

To remedy this, SMEL intends to introduce a waggon tippler in 2028. This equipment will significantly streamline rail operations by increasing the plant’s rail handling capacity and allowing for faster waggon turnaround times.

At around 11.32 AM, Shyam Metalics was trading 1.07% lower at ₹623.50, against the previous close of ₹630.25 on NSE. The counter touched an intraday high and low of ₹632.45, and ₹620.30, respectively.

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