Bihar Sponge Iron Limited, established in 1982 in Patna, Bihar, is an Indo-German joint venture involving Modi Industries, Modi Rubber, and Lurgi, Germany, along with the Bihar State Industrial Development Corporation. The company specializes in producing sponge iron from iron ore, with an installed capacity of 150,000 tonnes per annum. Sponge iron serves as a substitute for scrap in electric arc and induction furnaces, and the company benefits from technical collaboration with Lurgi for expertise.
Despite its strategic ventures, the company faced financial challenges, with its net worth declining by over 50%, leading to its designation as a sick company by the Board for Industrial and Financial Reconstruction (BIFR). IFCI has been tasked with drafting a rehabilitation plan. To enhance its operational efficiency, Bihar Sponge Iron has invested in a Captive Power Generating Unit utilizing coal fines from its operations, commissioning a 5 MW power plant in 2002-03.
