The Steel Authority of India Limited (SAIL) intends to have its present crude steel capacity of 13 MT increased to 60 MT in 2020 through Brownfield and Greenfield expansion, a senior officer said.
"SAIL is presently undertaking Brownfield expansion from present crude steel capacity of 13 MT to 23.7 MT in 2012. Further, we envisage reaching a level of 60 MT crude steel capacities by 2020 through Brownfield, Greenfield expansions and acquisitions," SAIL Chairman S K Roongta said.
Roongta was addressing the inaugural session of Global Steel 2010, an international steel conference which began in Goa on today. The inaugural function was chaired by Arun Kumar Jagatramka, Chairman and Managing Director of Gujarat NRE Coke.
Others including Dr Neil Bristow, Chief Consultant H & W Worldwide Consulting Ltd, S Murari, Director of Coal India Limited and Brad Mullard, Executive Director Minerals, Industry and Investment, Australia were present on the occasion.
"Existing SAIL steel plants would be modernised and capacity of units would be expanded to their maximum potential," Arun Kumar Jagatramka told a gathering while talking on the topic 'India’s Steel Vision 2020—Role and Future plans of SAIL.'
Roongta said that the issues related to iron ore, which is a raw material for Steel is capacity breakers for the Indian companies. “SAIL’s iron ore resources are having inherent problem of higher alumina. The natural lump generation is about 20 to 25 per cent with limited scope for alumina reduction," he added.
The SAIL boss said that the public sector undertaking will have to find ways to use lower grade iron ore and make best of use of higher grade ore, which is available.
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Stating that the domestic demand for steel will hike the production capacity in India, Roongta said that increased infrastructure projects will come as a saviour. "Even iron ore will be diverted to domestic market instead of exports, if there is increased local consumption by steel industries," he pointed out.
Roongta said that the land acquisition hurdles, insufficient infrastructure, capital moving into more profitable business and less availability of coking coal are impediments for the growth of this sector.
"With trend of capital moving into other profitable businesses, the borrowing would be difficult if they don’t generate internal resources," he advised.