Lucknow: The government is examining a proposal for an integrated steel unit and a 1,000 MW power plant at the Jagdishpur facility of the Steel Authority of India Ltd (SAIL). It is examining the capacity in collaboration with Japan's Kobe group.

Minister of State for Steel Beni Prasad Verma stated this at Jagdishpur on Monday. He said that the proposal envisaged an investment of Rs.10,000 crore and Oil Ministry will soon be approached for the supply of natural gas.

He said, “All possible efforts shall be made to expedite the completion of the project. I will personally take up the matter at the highest levels in the government," as he examined the progress in the revival of the erstwhile Malvika Steel's unit.

State-run SAIL got hold of the ailing Jagdishpur unit of Malvika Steel in 2009. The first phase of a major revival plan -- which includes the setting up of a 12,00-tonne and 13,000-tonne galvanised sheet corrugation unit -- is currently on.

Verma said that in the present scenario India is the fifth largest steel producer in the world and it has the potential to become the second largest producer on account of growing demand, rich resources, skilled manpower and vast experience of steel making.

SAIL on its own has decided to spread out its crude steel production from 12.84 million tonnes to 21.40 million tonnes per annum by 2012-13.

The minister also told that the state-run firm was carrying out several activities under its corporate social responsibility plan in and around Jagdishpur, including the upgrade of a school and health checks with free medicines at villages in the vicinity.