At a time when major steel producers are slashing production targets, state-run Steel Authority of India (SAIL) said its expansion and modernisation programme is well on track.
"Our modernisation and expansion programme is on track as we believe this is the right time to get prepared for the better time and I think the sector will revive by 2010-11," SAIL director commercial Shoeb Ahmed said here today while interacting with members of the Indian Chamber of Commerce.
He said the company would add 10 million tonnes by 2010-11. SAIL would be investing Rs 54,000 crore towards this expansion and modernisation that would take its steel capacity to 26.2 million tonnes from the current 15 million tonnes.
Speaking about the global steel industry, Ahmed said, "global steel production in 2008 was down by 1.2 per cent to 1,327 million tonnes but, in December steel production was down by 23.4 per cent to 84.4 million tonne as against of 105 million tonnes as projected. Major producers have even cut production by 30-40 per cent."
He said that country's steel production by 2010-11 could reach 80-85 million tonnes from around 60 million tonnes as demand from domestic market would continue to grow as the economy was growing at six per cent in the next year.