**Executive Summary**
This document presents the Ministry of Steel's response to an unstarred question in the Lok Sabha regarding delays in the Sinter Plant project at Bokaro Steel Limited (BSL). The answer addresses concerns about project completion, impact on production, received representations, reasons for delays, monitoring mechanisms, and steps to prevent further losses to BSL. The response is dated 10.02.2026.
**Key Points / Main Content**
* **Project Overview**
* The contract for the Sinter Plant project at SAIL/BSL was awarded in 2015.
* **Reasons for Delay**
* Progress was adversely affected by the non-performance of a consortium partner responsible for design, engineering, and resource deployment.
* Disruptions were caused by the COVID-19 pandemic.
* The defaulting consortium partner was banned from business dealings, and risk & cost action was initiated.
* **Mitigation Efforts**
* SAIL/BSL met sinter requirements through repair and debottlenecking of the existing Sinter Plant.
* The remaining work on the main package was awarded to new agencies in 2025. Execution has begun.
* **Monitoring and Execution**
* Digital Project Management Solutions and Electronic Drawing Management Systems have been introduced for improved execution and monitoring.
* The Government has a structured system for regularly monitoring all projects of SAIL.
**Impact Analysis**
**SAIL/BSL (Bokaro Steel Limited)**
* **Impact:** BSL faced financial losses due to project delays affecting Blast Furnace-I production.
* **Action Required:** BSL has awarded the remaining work to new agencies and is implementing digital project management tools for improved monitoring and execution of SAIL projects.
**Ministry of Steel**
* **Impact:** The Ministry is responsible for addressing the concerns raised in the Lok Sabha question and ensuring project completion.
* **Action Required:** The Ministry must continue to monitor the project's progress, ensure effective monitoring mechanisms are in place, and prevent further losses to BSL.
**Consortium Partner**
* **Impact:** The concerned firm was banned from business dealings.
* **Action Required:** No action required as they are no longer involved.
Key Entities Referenced
Bokaro Steel Limited (BSL): Steel plant experiencing financial losses due to delays in the Sinter Plant project.
Sinter Plant project: Project at Steel Authority of India Limited/Bokaro Steel Plant (SAIL/BSL) that has been delayed.
Ministry of Steel: Government ministry responsible for the steel industry.
Steel Authority of India Limited (SAIL): Company overseeing the Sinter Plant project at Bokaro Steel Plant (BSL).
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 1741
FOR ANSWER ON 10.02.2026
IMPACT OF DELAY IN SINTE R PLANT PROJECT ON BSL
1741. SHRI DULU MAHATO:
Will the Minister of STEEL be pleased to state:
(a) whether the Government is aware that the Sinter Plant project worth Rs. 400 crore
awarded in 2019 to Bhilai Engineering Corporation, still remains incomplete, if so, the
details thereof;
(b) whether the Government acknowledges that the prolonged delay in this project has
adversely affected the daily production of Blast Furnace‑I, resulting in heavy financial
losses to Bokaro Steel Limited (BSL);
(c) whether the Government has received any representations regarding this matter
and the details of the action in this regard;
(d) whether the Government can explain the reasons for such an inordinate delay in
completing the project and indicate the authorities accountable for it, if so, the details
thereof;
(e) whether the Government has instituted any effective monitoring mechanism for this
project and if so, the progress achieved so far; and
(f) whether the Government will take immediate steps to ensure early completion of
this project so as to prevent further losses to BSL?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a)to(f): The contract for the Sinter Plant project at Steel Authority of India
Limited/Bokaro Steel Plant (SAIL/BSL) was awarded in 2015. However, progress of
the project was adversely affected due to non-performance of a consortium partner
responsible for design, engineering and resource deployment; disruptions caused by
the COVID-19 pandemic, etc. Due to continued poor performance of the defaulting
consortium partner, the concerned firm was banned from business dealings, and risk
& cost action was also initiated
SAIL/ BSL was able to meet the sinter requirement for its current operating
levels by carrying out by repair and debottlenecking of the existing Sinter Plant.
SAIL/BSL has awarded the balance works for completion of the main package to new
agencies in 2025, execution against which has begun.
For improved execution and monitoring of projects, Digital Project Management
Solutions and Electronic Drawing Management Systems have been introduced.
Government has a structured way of monitoring all projects of SAIL regularly.
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