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The plant, to be built at Nagarnar in Chhattisgarh state, is part of a $3 billion project that will see the steelmaking company producing hot rolled coil (HRC) by 2014-15. The project is scheduled for completion by mid-2015.
Plantmaker Siemens will be responsible for the design and supply of two basic oxygen converters, two 175-tonne desulphurisation plants, two ladle furnaces and a degassing plant.
Siemens will also be in charge of the material handling and de-dusting systems, and plants for gas recovery and water treatment.
When finished, the complete integrated production complex is intended to have an annual output capacity of 3 million tpy of steel.
The Indian branch of Siemens VAI Metals will be executing the project with consortium members SEW Infrastructure and Mukand Engineers, which will look after the manufacturing and erection of the steel structures and the general equipment.
The plant will comply with environmental standards in both Europe and India, Siemens added.