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Dialogue : Page 4 |
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Government’s Plan to Transfer Provincial Steel Projects to Private Sector
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For the time being, Iran’s steel industry has 8 provincial steel projects undertaken, each with 800 thousand tons capacity, while they can be promoted to one million tons.
Upon the completion and commissioning of the projects, the country’s steel capacity will reach to 28 million tons and by launching other plans, the total rate will hike to more than 35 million tons.
Based on the new policies, the government is prepared to hand over the provincial plans to the private sector.
In the conducted interview, Esrafil Ahmadieh, Managing Director of National Iranian Steel Company disscusses the issues related to the provincial plans.
What is the status of 8 provincial steel projects?
The contry’s 8 provincial steel projects are incepted in the Ninght Government and upon signing the contracts, the projects are carrying out.The government’s policy was to implement the steel industry’s projects in underdeveloped regions in a bid to compensate the employment and development issues in deprived areas.
Based on the government’s policy, the projects were supposed to be undertaken by the state, yet concerning the Article 44 and transferring the economic operations to the private sector, we voiced readiness to assign the projects, while both Minister of Industry, Mine and Trade, as well as Chairman of IMIDRO are emphasizing on the issue.
Last year, four projects out of 8 provincial steel projects were presented in bid. We succeded to sell one of the plans called Bafq project (located in Yazd), and we hope that the private sector can enter in other projects of the country.
If it is realized, the private sector’s capacity in the steel production will increase five times.
Likewise, if state-run or private banks show intrest in buying the provincial steel projects, they can operate if there is no legal prohibition in this regard.
How much is the investment for each plan?
The amount of investment for each project, according to the current exchange rate at the market, will reach to more than 400 million dollars.
Out of the 8 provincial steel projects, the reduction section of frour plans by Iranian direct reduction method (Pered) is undertaken and for the utilized equipments in the project, we tried to use the domestic products.
At what stage of physical progress the projects can be handed over?
The projects are now half finalized and according to the presented statistics, each of the plans enjoys a different physical progress.For handing over the project to the private sector, no certain percentage is specified by the law, so that the projects are ready to be transferred at any stage of the physical progress.
Bafq steel project was transferred to the private sector while its physical progress was about 50 percent.
How much is the physical progress of each of the eight steel projects so far?
The physical progress of each project, by the the first half of September, is different, while the major improvements is seen in the direct reduction units.Currently, the physical progress in the direct reduction units of the projects such as Chahar Mahal and Bakhtiari is more than 75 percent, Shadegan steel more than 70 percent, Neyriz steel some 70 percent, Mianeh Steel about 65 percent, Baft steel more that 59 percent and finally Sabzevar steel more than 60 percent, while Bafq steel is handed over to the private sector.
Chahar Mahal and Bakhtiari project, with more than 75 percent of physical progress in the direct reduction sector is amonge the projects that will be finalized and ready to operate as of March.
How do you evaluate the local experts’ ability to undertake steel projects?
We coud undertake all the eight projects by Iranian method, yet according to the type of the contracts, four projects will be undertaken based on PERED method and the other four projects will be undertaken based on the Midrex method.We are really capable in direct reduction sector but in producing steel, we require a series of technologies.
Did the sanction leave an effect on Iran’s steel industry?
No. Creating steel capacity in the country is increasing and there is no problem in the process of steel production. If in some sectors there was an effect, we paved the way through some tricks.
How do you evaluate the country’s steel production and consumption?
Now that the country’s steel consumtion reaches to about 25 million tons per annum, some 15 million tons is owned by the domestic production while about 10 million tons is provided by the imports. It does not mean that increasing the rate of production will be sufficient as in the coming years the amount of consumption will also increase, thus we should follow a speed in carrying out the projects in a bid to meet the increase.
Currently, the capacity of steel is almost 20 million tons in the country and by undertaking the provincial steel projects; the capacity will reach to 28 million tones.In addition, there are other ongoing projects in the country, increasing the steel capacity as of 35 million tons.We hope that the country’s demand will be met.
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