Steel Authority of India Targets 24 Million-Ton Annual Capacity

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--India's state-controlled Steel Authority of India (SAIL) is planning to invest $2.4 billion in the next fiscal year to expand its installed production capacity to 24 million tons per year. This is an increase of $181 million over what SAIL is expected to invest in the current year, but $272 million lower than the year's budget estimate. The company has spent less than expected during the fiscal year.

SAIL will fund expenditures from its internal sources. Currently, it has a total annual production capacity of 14 million tons; after a total investment of $13 billion, it will reach the 24 million-ton target.

In the coming fiscal year, that largest share of investment will go to the Bhilai steel plant, which will receive more than $1 billion for the installation of 700 tons per day of oxygen, a hot metal desulphurization unit and a rail track.

The Rourkela steel plant will receive $436 million for an expansion, a 700-ton-per-day oxygen plant, and a coke oven gas holder. IIsco steel plant will have $327 million invested in the expansion and the rebuilding of a coke oven battery.

The Bokaro steel plant will receive $359 million for an expansion and the setting up of a steel processing unit at Bettiah, and $163 million will go to Durgapur for installation of a steel-processing unit at Kangra and for expansion. Other plants will receive $77 million, and the balance of $99 million will go to the raw material division and Chanrapur ferro alloy plant.

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