State-run Steel Authority of India (SAIL) today lowered its production capacity target by over 10 per cent to 23.46 million tonnes per annum as against earlier announced 26.18 million tonnes by 2011-12.
"We have our ongoing expansion programme, where we are going to take up our production capacity to 23 million tonnes by 2011-12," SAIL Chairman S K Roongta told reporters here.
Meanwhile, in a filing to the Bombay Stock Exchange, the firm said it would expand its production capacity to 23.46 million tonnes by 2011-12 at an investment of Rs 59,905 crore. Last year, it announced to increase the same to 26.18 million tonnes.
The current installed production capacity of SAIL is about 14 million tonnes per annum.
Although Roongta did not give any specific reason for lowering its target, the downward revision is apparently due to slump in steel demand amid the global economic crisis.
Asked when SAIL would increase its installed capacity to 26 million tonnes, he said: "Our overall expansion programme stands at 26 million tonnes. It might be done by 2012 or might be slightly delayed, but we have not fixed any timeline."
Besides, SAIL would undertake capital schemes relating to augmentation of production from existing lines and would develop new mines, the BSE statement said.
