SAIL targets 8% growth; to invest Rs 25,000cr

Steel Authority of India (SAIL), anticipating an 8% growth in the domestic steel market, has charted a capital expenditure of Rs 25,000 crore to achieve a production target of 20 million tonne per annum by 2011-12.

SAIL has worked out a long-term strategy, 'Ccorporate plan - 2012', in a bid to garner a major chunk of the domestic market share and to render itself globally competitive.

SAIL plans to increase the capacity of all its 4 integrated steel plants in Bhilai, Durgapur, Rourkela and Bokaro.

The Bhilai plant will see the capacity go up from 4.9 million tonne to 7 million tonne by 2012, Durgapur from 1.98 million tonne to 3.2 million tonne per annum, Rourkela from 1.73 million tonne to 3 million tonne and Bokaro from 4.1 million tonne to 6.5 million tonne giving a total of 19.7 million tonne of steel per annum.

SAIL would achieve its targets in two stages. The current fiscal marks the completion of stage-i expansion plan whereas the second expansion stage would conclude in 2011-12.

The company would take up immediate priority schemes in the first stage of expansion and plans to invest Rs 4,300 crore in this stage. The investment, primarily to be funded by internal accruals, would be supplemented by market borrowing if need arises.

The areas broadly identified for investment are development of iron ore mines, rebuilding coke oven batteries at Bhilai and Durgapur, revamping of iron and steel making facilities at Bhilai, Durgapur and Bokara, installation of a blast furnace at Rourkela, installation of auxiliary fuel injection systems in all blast furnaces in a phased manner and installation of new finishing mills.