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BSIL is the first commercial sponge iron plant in India and is also recognised as the most efficient coal-based plant in India. The plant is located at Umesh Nagar, Chandil, in district Singhbhum, which is 30 kms from Jamshedpur. Chandil is a known backward tribal area in the state of Bihar, where they unit produces Sponge Iron from indigenous iron ore and non-coking coal available abundantly in the vicinity. The implementation of this massive project started in June 1986 and was completed in record time. The plant started commercial production in July 1989. Sponge Iron is used as a raw material for making steel in electric arc furnaces and induction furnaces, substituting and supplementing indigenous and imported scrap.
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