Strategic Digital Partnership to Revolutionize Steel Production

In a significant move toward industrial modernization, Steel Authority of India Limited and ABB have formalized a collaboration aimed at digitally transforming operations at the Rourkela Steel Plant. The agreement, signed on May 22, 2025, will leverage ABB's expertise in automation and digitalization to create sophisticated digital twins of the plant's blast furnaces and steel melt shop areas. These virtual replicas will enable data-driven decision-making and process optimization, marking a pivotal advancement in India's steel manufacturing capabilities.

Meeting Growing Production Demands Through Technology

The Rourkela Steel Plant, which produced 4.08 million metric tons of saleable steel products in FY 2024-25, faces ambitious growth targets as SAIL plans to more than double its output to approximately 9 million metric tons by 2030. This expansion responds to India's escalating steel demand amid rapid infrastructure development and industrialization. The digital transformation initiative arrives at a critical juncture, providing the technological foundation necessary to achieve this substantial production increase while maintaining operational excellence.

Digital Twin Technology: The Core Innovation

At the heart of this collaboration lies the implementation of digital twin technology, creating virtual models of physical assets that simulate real-time operations. These comprehensive digital replicas will continuously analyze operational data from the plant's blast furnaces and basic oxygen furnaces, enabling engineers to monitor performance metrics, predict maintenance needs, and optimize production parameters without disrupting actual operations. The technology represents a significant leap forward in process control and operational visibility for the steel sector.

Addressing Industry Challenges Through Digitalization

The steel industry globally faces mounting challenges, including stringent environmental regulations, volatile raw material costs, and intense market competition. The SAIL-ABB partnership directly addresses these pressures by implementing data-based models that can identify efficiency improvements, reduce resource consumption, and minimize environmental impact. By harnessing real-time data analytics, the Rourkela plant aims to optimize energy usage, reduce emissions, and improve overall operational sustainability.

Leadership Perspectives on the Transformation

Biswa Ranjan Palai, Executive Director (Works) at SAIL, emphasized the strategic importance of this initiative, stating: "This partnership with ABB is a significant step towards modernizing our operations and achieving greater efficiency and sustainability. The development of this digital twin technology will transform our steel manufacturing processes by providing us real-time insights into furnace operations, thereby enabling us to optimize our performance, improve product quality, increase asset longevity and remain competitive in the global market."

ABB's Technological Contribution

Kapil Agarwal, Senior Vice President & Local Division Manager of Process Industries at ABB India, highlighted the technological aspects of the collaboration: "This collaboration underscores our continued commitment to driving digital innovation and supporting the steel industry in its quest for excellence. By integrating advanced data-driven models and leveraging digital twin technologies, we aim to revolutionize the steelmaking processes, ensuring higher efficiency and a reduced environmental impact." ABB brings substantial expertise in industrial automation and digital solutions, having implemented similar technologies across various sectors globally.

Broader Implications for India's Industrial Landscape

The SAIL-ABB partnership represents more than just a technological upgrade for a single facility; it signals a broader shift toward Industry 4.0 principles within India's core manufacturing sectors. As one of the country's largest steel producers embraces advanced digitalization, the initiative could establish new benchmarks for operational excellence and sustainability across India's industrial landscape. The success of this digital transformation at Rourkela could potentially accelerate similar initiatives throughout India's manufacturing ecosystem, contributing to the country's industrial competitiveness on the global stage.

Key Takeaways:

• SAIL and ABB are creating digital twins of blast furnaces and basic oxygen furnaces at Rourkela Steel Plant to optimize operations through data-driven decision-making.

• The Rourkela Steel Plant aims to more than double its production capacity from 4.08 million metric tons to approximately 9 million metric tons by 2030.

• The digital transformation initiative addresses key industry challenges including environmental regulations, operational efficiency, and cost competitiveness through advanced data analytics.