 "SAIL")
Steel Authority of India Ltd (SAIL) may invest Rs 20,000-24,000 crore in setting up a four-million-tonne greenfield steel plant at its IISCO plant in West Bengal, officials said.
It plans to produce high-end flat hot rolled coil (HRC), including for automotive applications, at its existing site at Burnpur and has received in-principle approval, they added.
"We have received in-principle approval for the greenfield plant which will produce flat HR coils, targeting grades like API (American Petroleum Institute) and automotive among others," IISCO steel plant director-in-charge Brijendra Pratap Singh told PTI.
"Board approval is still awaited, but expected shortly," he said.
Singh added that the exact capex and investment details would be finalised after the tendering process.
After numerous delays and discussions regarding potential foreign partners for a joint venture, SAIL has finally decided to undertake the flat steel expansion project independently, likely relying on imported technology. The project is expected to be completed within the next 3-4 years, he added.
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Speaking about IISCO's performance, Singh said the plant currently operates a 2.6 million-tonne crude steel plant and converts 85-90 per cent into finished products like TMT bars, wire rods, and heavy structurals.
He expects the plant to achieve an ending revenue of Rs 11,500- Rs 12,000 crore for the current fiscal year due to higher production despite sluggish market prices.
In the past, SAIL management had informed investors about a planned Rs 1 lakh-crore investment across its plants for greenfield and brownfield expansions over the next 3-4 years, while aiming to maintain a debt-equity ratio of 1:1.
For the current fiscal year (2023-24), SAIL's capex is estimated at Rs 5,500 crore, of which Rs 2,100 crore has already been infused in the first half.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
