Steel Authority of India Ltd (SAIL) is contemplating an investment ranging from Rs 20,000 to Rs 24,000 crore to establish a 4-million-tonne greenfield steel plant at its IISCO facility in West Bengal according to a report from The Economic Times.
The company intends to manufacture high-end flat hot rolled coil (HRC), including those suitable for automotive applications, at its existing Burnpur site and has received initial approval for the project.
Brijendra Pratap Singh, the director-in-charge of the IISCO steel plant, stated, "We have received preliminary approval for the greenfield plant, which will focus on producing flat HR coils, catering to grades such as API (American Petroleum Institute) and automotive, among others."
He added, "We are still awaiting board approval, which is expected shortly."
Singh further mentioned that the precise details regarding capital expenditure and investment would be determined following the tendering process.
After various deliberations and delays, SAIL has opted to pursue the flat steel expansion initiative independently, potentially leveraging imported technology.
It is anticipated that the project will be completed within the next 3-4 years.
Regarding IISCO's performance, Singh highlighted that the plant currently operates a 2.6 million-tonne crude steel facility, with 85-90 per cent of its output transformed into finished products such as TMT bars, wire rods, and heavy structural.
Despite sluggish market conditions, he anticipates the plant to achieve revenue in the range of Rs 11,500 to Rs 12,000 crore for the ongoing fiscal year due to increased production.
Previously, SAIL management had informed investors about plans for a total investment of Rs 1 lakh crore across its facilities for both greenfield and brownfield expansions over the next 3-4 years, while aiming to maintain a debt-equity ratio of 1:1.
For the current fiscal year (2023-24), SAIL's capital expenditure is estimated at Rs 5,500 crore, with Rs 2,100 crore already invested in the first half of the year.
Bhuvan Krishna is Staff Writer at Swarajya.
An appeal from Swarajya
At Swarajya, we rely on our readers' support through subscriptions to sustain our media platform. Unlike larger conglomerates, we are unable to relentlessly chase advertising money — our model is largely built on your patronage.
Your support has never been more crucial. We work tirelessly to deliver 10-15 high-quality articles daily, ensuring you receive insightful content from 7 AM to 10 PM.
If you believe India's story has to be articulated in a way it has never been done before without shrugging it off, become a patron (or) subscribe now for ₹̶2̶4̶0̶0̶ ₹1999 and get 12 print issues, unlimited digital access for 1 year, a special India that is Bharat T-shirt (Offer ends soon).
We are counting on you!