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SAIL plans Rs 14,337-cr capacity expansion in FY12

03 Mar 2011 Evaluate

State-run Steel Authority of India (SAIL) plans to invest Rs 14,337 crore for its capacity expansion in its existing five major plants next fiscal. The proposed outlay is 17% more than Rs 12,254 crore it had estimated to spend on enhancing capacity in the current fiscal. Out of the proposed capex, a good part (Rs 5,730 crore) would be spent on modernization and expansion of Bhilai Steel plant. SAIL's Rourkela facility would get Rs 2,619 crore, IISCO Rs 2,100 crore, Bokaro Rs 1,700 crore, Durgapur Rs 950 crore and the Salem facility Rs 100 crore among others.


In Bhilai, apart from capacity expansion, SAIL proposes a 700 tonne per day (tpd) oxygen plant and rebuilding the Coke Oven battery No. 6. In Rourkela the company plans to install a 700 tpd oxygen plant and installation of a coke oven gas holder besides increasing capacity. SAIL has three alloy steel plants at Durgapur, Salem and Bhadravati in Karnataka. It proposes to invest Rs 25 crore in these three facilities next fiscal.


Apart from domestic expansion plans, the state-run firm also eyes to set up four plants of 3 million tonne per annum capacity each in Oman, Afghanistan, South Africa and Mongolia with an estimated investment of $12 billion.

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