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SAIL plans Rs 1 lakh crore capex to reach 35 mt by FY30
Steel Insights Bureau
Steel Authority of India Ltd’s (SAIL) capex for its planned expansion of capacity to 35 million tons (mt) by FY32 is seen at `1 lakh crore, according to the company’s Finance Director Anil Tulsiani.
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“We have projected a total outlay of nearly `1 lakh crore for our entire expansion and the debottlenecking facilities over the next 9 to 10 years. The capex will be peaking basically in 2027-2028 and 2028-2029 when all the modernisation will be going on together,” Tulsiani told analysts during a conference call post the January-March financial results declaration.
SAIL’s next phase of growth will take the current capacity to 35.65 million tons (mt) by FY31 and it plans to commence this mega project by setting up a flat steel capacity at IISCO followed by Bokaro and other plants, Tulsiani had earlier disclosed to analysts post the October-December financial results declaration.
“We have got plans lined up and will be going in for ramping up some of our facilities and that will add almost 3 mt in the next 3-4 years and beside this we are planning expansion plans in IISCO Burnpur of 4.5 mt, then 3 mt in Bokaro and by FY32 we can have it in Rourkela steel plant. So our plan is to achieve around 35 mt by FY32. We have obtained the in-principle approval of the Board to go ahead with the preparation of Draft Project Report for Bokaro and IISCO Burnpur. Shortly, we will be also going in for Durgapur,” Tulsiani said recently.
The company is planning a capex of `6,500 crore for FY24, he said and the jump in capex due to capacity expansion projects would start from the second half of FY25.
“We will start placing the orders in FY24. The real work will start from the second half of FY25,” he explained.
