Maharatna Steel Authority of India Limited has signed a deed of transfer with Burn Standard and Co Ltd for the transfer of BSCL's Refractory Unit at Salem to the newly formed subsidiary of SAIL, namely SAIL Refractory Company Limited.

The deed was signed by BSCL MD Mr D Marandi and SRCL Chairman Mr S Hanumantha Rao.

Highlighting the crucial importance of refractory material in iron & steel production, SAIL chairman Mr Verma termed the transfer as an enduring and mutually beneficial move for both the companies.

SAIL has already initiated action towards manpower deployment and undertaken studies for CAPEX plans for installation of tunnel kiln, mixing machine etc at the newly acquired refractory unit. A previously declared non operational shaft kiln has also been brought under operation. Action is also being taken to arrange raw material for the Salem Refractory Unit through SAIL's central procurement system as in the case of SAIL Refractory Unit and other plants.

The process of transfer of BSCL's Salem Refractory Unit as a subsidiary of SAIL was initiated on 10th June, 2010, when the Cabinet Committee on Economic Affairs approved the financial restructuring of BSCL, and also authorized the Department of Heavy Industries and Ministry of Steel to work out operational steps for the transfer. Subsequently, SRCL was incorporated at Coimbatore, Tamil Nadu on 23rd August, 2011 for this purpose.

SAIL plants a have been sourcing refractory materials from BSCL's refractory plant at Salem which produces basic grade refractories from the raw magnesite available from its captive mines at Salem.