History of Orissa Sponge Iron and Steel Ltd.

YEAR EVENTS 1979 - The Comp. was incorporated as a Public Limited Comp. on 9th April, 1979. The Comp. was promoted in the joint sector by the Industrial Promotion and Investment Corporation of Orissa Ltd. & Torsteel Research Foundation India [TRFIs].

- The main objective of Comp. is to manufacture sponge iron.

- The Comp. entered into four separate agreements with Allis-Chalmers Corporation, U.S.A. relating to [is] supply of certain equipment including, process equipment [which pertains to the main plants] & materials, [iis] rendering of technical services outside India including supply of certain specified documents, drawings, information & data [iiis] rendering of advisory & other services in India pertaining to erection, installation, start-up & operations of Company plant and [ivs] grant of patent rights to the Company.

- Sponge iron is produced by removing most of oxygen in the iron ore, without resorting to melting. Sponge iron will be produced both in lumps & briquettes. It can be used in electrical furnace together with scrap for making steel & in industrial furnace together with pig iron to make ductile iron & other high quality castings.

1980 - 70 shares subscribed for by signatories to the Memorandum of Association; 12,00,000 shares taken up by Torsteel Research Foundation in India [TRFs]; 18,59,930 shares allotted to industrial Promotion and Investment Corporation of Orissa, Ltd. [IPICOLs] & 6,00,000 shares issued to Allis-Chalmers Corporation, U.S.A., 23,40,000 shares offered at par for public subscription during November 1980.

1985 - The Comp. revalued its factory building & plant & machinery as on 31st March.

- A number of TRFI licensees joined hand with TRFI for setting up the Company project. They are Mukand Iron and Steel Works, Ltd., Usha Alloys and Steels, Ltd., Rathi Alloys Steels, Pvt. Ltd., Mahindra Ugine Steel Co., Ltd., Shri Ishar Alloy Steels, Pvt. Ltd., Rathi Ispat, Ltd., Surendra Industries [Mumbais], Pvt. Ltd., Bhoruka Steel, Ltd., Bhagwan Industries, Ltd., Star Steel Pvt. Ltd., Western Rolling Mills Pvt. Ltd., Agarwal Hardware Works Pvt. Ltd., Orient Steel and Industries, Ltd.

1991 - During the year, an order was received to assist Sunflag Iron & Steel, limited for improving their process technology to achieve lesser carbon consumption, lesser off grade production & lesser kiln accretion.

- The Comp. proposed to associate with a joint effort with the State Government, Central Govt., TRFI & others to promote a venture for processing fruits & vegetables grown around the plant site areas & districts, primarily for export purposes.

- The Comp. also associated in assisting the promotion of large pig iron unit in Orissa from where it hoped to get sufficient hot meal to blend with its own sponge to make billets.

1994 - Production of sponge iron was restricted to 93,707 tonnes due to unforeseen breakdown of thrust roller supporting the kiln in January, 1995 leading to loss of production for about 3 weeks.

- The Company 65,000 TPA steel billet project was implemented and commercial production commenced from 15th March, 1995.

- The Comp. undertook to install an additional kiln with a capacity of 1,50,000 tpa of sponge iron taking the total to 2,50,000 tpa. This would be taken up along with commissioning of the BANSPANI-DAITARI rail link expected by 2002.

- The Comp. undertok to set up a 100% EOU for manufacture of tomato paste, mango concentrate, papaya concentrate & guava pulp in association with Orissa Agro Industries Corporation Ltd.

- The Comp. undertook to set up a one million tonne capacity iron and steel project in association with State Government.

- 12,37,958 No. of Equity shares allotted as conversion of loans to promoters at a premium of Rs 5 per share.

1995 - The Comp. proposed its second phase of expansion for setting up 9 MW power plant using waste heat of kiln.

- The Comp. undertook to set up a separate Comp. together with an international Comp. for manufacture of steel billets at Patna, Bamra, district Sambalpur, Orissa through sponge iron waste heat & waste coal power - electric furnace & continuous caster route. The project envisages setting up a project to manufacture light sections in a rolling mill complex with an installed capacity of 3,00,000 tpa.

- 36,18,979 Rights equity shares issued [Prop. 1:2; prem. Rs 10s]. Of these 35,975 shares kept in abeyance.

1996 - The sponge iron plant suffered an accident due to failure of an imported thrust roller, leading to plant closure for 20 days.

1997 - The Comp. also intends to install an additional kiln with a capacity of 150.000 tonnes of Sponge Iron Production per year taking the total capacity to 2,50,000 tonnes per year.

- The Comp. intends to promote a separate Comp. in association with a reputed international Comp. to set up an Iron & Steel Complex at Bamra in stages in the district of Sambalpur, Orissa.

- The proposal envisages setting up a project for manufacture of light sections in a rolling mill complex with an installed capacity of 300000 tonnes per annum.

1998 - Bilati [Orissas] Limited, a fruit & vegetable processing Export Oriented Unit promoted by Comp. has been successfully commissioned.

- Comp. intends to set up a 10 MW power generating unit using waste heat from the reactor for captive consumption of sponge iron & billet units.

1999 - The Comp. had approached Grid Corporation of Orissa limited to allow the Comp. to avail power during off-peak hour at a concessional rate which is receiving their consideration.

2007

-Orissa Sponge Iron and Steel Ltd has appointed Mr. Munir Mohanty as an Additional Director of Company.