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SAIL likely to invest Rs 10,264 crore to develop mines

22 Aug 2011 Evaluate

Steel Authority of India (SAIL) is likely to invest Rs 10,264 crore to develop mines catering to its increased raw material requirement upon completion of an expansion programme. The company has already embarked on Rs 70,000-crore capacity expansion plan to ramp up its domestic output to 23.46 million tonnes per annum by 2012-13 from 14.35 MTPA at present.

The company’s iron ore requirement is expected to increase from 23.2 mt at present to a post-expansion level of 39 mt, which will be met from captive sources. SAIL has lined up Rs 10,264 crore for development of the mines. The state-run firm at present runs seven major iron ore mines, four of which are in Jharkhand and the remaining in Orissa.

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