SAIL incurs Rs 42,101 crore capex till July

The proposed investment for capacity expansion during the current phase was Rs 61,870 crore

Steel Authority of India (SAIL) has incurred Rs 42,101 crore expenditure till July this year out of its proposed Rs 61,870 crore investment for capacity expansion during the current phase.

     

Steel Minister Beni Prasad Verma, in a written reply to Lok Sabha, said SAIL has spent Rs 9,918 crore in Bhilai, Rs 9,679 crore in Rourkela, Rs 1,691 crore in Durgapur facility, Rs 3,662 crore in Bokatro plant and Rs 14,890 crore in its IISCO plant in Burnpur and Rs 2,261 crore in Salem plant.

     

SAIL is investing Rs 61,870 crore on modernisation and expansion of its existing facilities to increase crude steel production capacity to 21.4 million tonnes per annum (mtpa) from 12.8 mtpa now.

     

Expansion of Salem steel plant of SAIL has been completed in September, 2010. For other plants, Verma said, efforts are being made to complete progressively by 2014.

     

"RINL is also presently expanding its capacity of liquid steel against which the new blast furnace, oxygen plant, power and water system have been commissioned and are under oepartion. Other major units are being commissioned during the current fiscal," Verma said.

     

Rashtriya Ispat Nigam is also expanding its crude steel making capacity to 6.3 mtpa from 3 mtpa now with Rs 12,291 cropre investment.

     

Verma said implementation of modernisation and expansion plans of both the steel firms have been delayed due to unforeseen soil conditions encountered, logistics problems due to brownfield nature of job and lack of deployment of technically competent manpower by the contractors.

     

"All out  efforts are being made to complete the process at the earliest," he said.

     

To a separate question, the Minister said India's steel capacity increased to 96.71 mtpa in 2012-13 from 90.87 mtpa a year earlier. India had produced 78.31 mt steel in 2012-13.