Incorporated at Patna, Bihar, on 16 Apr.'82, Bihar Sponge Iron is an Indo-German venture, promoted in the joint sector by Modi Industries, Modi Rubber and their associates, along with the Bihar State Industrial Development Corporation and Lurgi, Germany._x000D_ _x000D_ The company produces sponge iron from iron ore (inst. cap. : 1,50,000 tpa). Sponge iron is a substitute for scrap which is used as a raw material in electric arc furnaces / induction furnaces. It has a technical collaboration with Lurgi, Germany, for technical know-how._x000D_ _x000D_ In Aug.'90, the company came out with a rights issue. The company's net worth eroded more than 50% from the peak during the last four financial years, as a result, it was referred to BIFR and was declared sick. IFCI has been appointed as the operating agency, for preparing a rehabilitation scheme._x000D_ _x000D_ The company is putting up a Captive Power Generating Unit, which will utilise the Coal Fines generated from the operations. The commissioning date of the plant has been changed from April 2001 to March 2002. It has also commissioned 5 MW captive power plant during 2002-03._x000D_