SAIL plans next phase of capacity expansion to 50 mtpa in 2023-24

12 Aug 2021 CW Team

Steel Authority of India (SAIL) will begin its next phase of modernisation and capacity expansion to over double its installed crude steel production to 50 million tonne per annum (mtpa) in 2023-24.

The company is to complete a Rs 70,000 crore modernisation and expansion programme, after which the capacity will increase to 21.4 mtpa.

The company's management said that SAIL's next phase of modernisation and expansion is likely to start from FY24. The company is looking forward to expanding its capacity by 12 to 14 mtpa in the first phase at Bokaro, Burnpur (IISCO) and Rourkela.

The company has already completed land surveys in Rourkela and Bokaro and has land parcels to support brownfield expansion.

According to a report, the company aims to clear much of the debts before beginning the expansion plans and finance the new expansion phase at a 1:1 debt-to-equity ratio.

In the first phase of expansion, the company aims to strengthen its Durgapur Steel Plant from 2.5 mtpa to 7.5 mtpa. The Rourkela Steel Plant is proposed to expand from 3.7 mtpa to 8.8 mtpa, Bokaro Steel Plant will be increased to 9.5 mtpa, and IISCO to 3 mtpa and then 7.3 mtpa in the next phase of expansion.

There are no plans to raise the capacity of the Bhilai Steel Plant in the first phase, but in the second phase, it will be raised to 12 mtpa from 7 mtpa and then 14 mtpa by 2030.

The capacity expansion of SAIL is in accordance with the National Steel Policy, which aims for 300 mtpa installed capacity by 2030-31.

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