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SAIL initiates capex plans for capacity expansion

Thursday, 15 Feb 2024
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SAIL has initiated the process of carrying out Rs 1,00,000-crore expansion and modernisation plan which would raise capacity to 35 million tpa by 2030-31. The steel maker’s current capacity in crude steel stands at around 20 MTPA and capacity utilisation is at 95 percent.

The company's board has already approved a greenfield expansion plan for IISCO Steel Plant in West Bengal for raising capacity to four MTPA. The mill will produce higher grade hot rolled coil (HRC) and American Petroleum Institute (API) grade steel products for the oil and gas sector and steel for making automotive components. The new mill is expected to be completed in about four years. IISCO’s current capacity is 2.6 MTPA, converting 85 percent of it to rebar, wire rods and heavy structural products.

Regarding expansion at Bokaro steel plant, the pre-feasability report studies (PFR) have been completed, and a consultant has been appointed for preparation of DPR. A new TMT mill of 1.4 MTPA coming up as part of the expansion plan, and board approval has been sought for the same.

For the next financial year, the company has set its capex at Rs 6,000 crore.

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