SAIL is in the final stage of completion of its ongoing Rs 70,000-crore modernisation and expansion programme that will take its crude steel capacity to a little over 20 mtpa.
In sync with the National Steel Policy, 2017, that envisages the country’s steel-making capacity to reach 300 million tonne per annum (mtpa) by 2030, largest steel-making PSU Steel Authority of India (SAIL) has proposed to expand its capacity to 49.6 mtpa in its Vision 2030 programme.
SAIL is in the final stage of completion of its ongoing Rs 70,000-crore modernisation and expansion programme that will take its crude steel capacity to a little over 20 mtpa. Under its Vision 2030 programme, the company plans to further add 29.6 mtpa in two phases by 2030. This might entail an investment of over $ 31 billion.
According to the plan, in the first phase, the capacity will be raised to 35.8 mtpa. The company intends to enhance strength at its Durgapur Steel Plant (DSP) to 7.5 mtpa in the first phase from 2.5 mtpa. That of the Rourkela Steel Plant (RSP) has been proposed to be raised to 8.8 mtpa from 3.7 mtpa now. Bokaro Steel Plant’s (BSL’s) capacity will be raised to 9.5 mtpa and IISCO’s to 3 mtpa in the first phase. No timeline has been set for the completion of the first phase.
Though there hasn’t been any plan to raise capacity at Bhilai Steel Plant in the first phase; it will see huge expansion in the second phase. Its capacity will be raised to 12 mtpa in the second phase from 7 mtpa now, and subsequently to 14 mtpa by 2030. IISCO’s will be raised to 7.3 mtpa.
“In addition to capacity enhancement, Vision 2030 also focuses on building market leadership with a global orientation, production and product-mix aligned with prevalent trends in the steel business, achieving complete integration of key inputs/raw materials, improvement in techno-economic parameters and manpower productivity, which will catapult SAIL into the top league of metals and mining industry at global level,” steel ministry has said in a response to a query of the parliamentary standing committee.
According to Budget documents, SAIL will spend around Rs 4,000 crore in 2020-21. It’s thrust now is to realise the full potential of the modernisation and expansion plans undertaken and completed at various plants or units. Further, in view of the present financial position of the company, emphasis is laid on consolidation of existing or just completed facilities, rather than going for new capital schemes during the next three-four years, the steel ministry said.