Incorporated on April 16, 1982, BSIL is a joint sector venture promoted by the Government of Bihar, IFC (Washington), DEG, Metallgesellschaft AG (Lurgi) and the Modi Group. Its registered office and plant are located in Chandil, Saraikela- Kharswan, a tribal region in Jharkhand (formerly Bihar). The coal-based DRI plant project commenced in June 1986 and was commissioned with Lurgi’s assistance on April 30, 1989, with commercial production beginning on July 1, 1989.

Initially designed to produce 150,000 TPA of Direct Reduced Iron (DRI)—a key raw material for the steel industry—the plant's capacity was later increased to 210,000 TPA using iron ore and non-coking coal. BSIL modernized the facility to optimize iron ore and coal while minimizing waste. The plant houses three kilns (one 500 TPD and two 100 TPD), and two 5 MW power plants with turbo generators and fluidized bed boilers, using coal char from the kilns for economic power generation. A 6 MT induction furnace powered by electricity produces high-quality ingots, with sponge iron serving as a primary raw material. The plant also features a cone crusher (which reduces iron ore to 5–20 mm), a jaw crusher for sizing, and a magnetic separator to improve feed for the power plant. Supporting infrastructure includes a cooling tower, water softener, and a dedicated double- track railway siding—ensuring efficient, simultaneous handling of coal and iron ore, and facilitating smooth movement of materials.