SAIL Announces Rs. 6,500 Cr. CapEx for FY-25, Part of 1 Lakh Cr. CapEx by 2030
Steel Authority of India (SAIL) Limited will be investing about Rs. 6,500 crore as Capital Expenditure (CapEx) during FY-25 for expanding its operations. This amount will be a part of the company’s CapEx of Rs. 1,00,000 crore by FY-30.
As per SAIL’s earnings call for its FY-24 financials, the company’s CapEx will be directed towards increasing its crude steel production capacity from the current 20 Million Metric Tonne Per Annum (MMTPA) to 35 MMTPA by financial year 2030-31.
Major Upcoming Steel Expansion Plans by SAIL in India
SAIL’s Expansion in West Bengal
SAIL plans to commission a new manufacturing facility at its IISCO steel plant in Asansol, West Bengal. This facility will produce Higher Grade Hot Rolled Coil (HRC) and American Petroleum Institute (API)-grade steel products for the oil and gas sector. The company will invest approximately Rs. 36,000 crore in constructing this new production mill at IISCO plant.
The expansion at IISCO will elevate the plant’s steel manufacturing capacity to 4 MMTPA from the current 2.6 MMTPA. Additionally, SAIL will install a coke oven battery with a capacity of 0.4 million tonnes at the IISCO plant.
Speaking about the commisisoning of IISCO steel plant during the company’s FY-24 earnings call, Mr. Praveen Nigam, Executive Director of Finance at Account at SAIL, said “…2027 or ’28, late we will be in a position to start commissioning of the facility at IISCO Steel Plant. And thereafter, gradually all the facility wll get commissioned by 2030-31”.
SAIL’s expansion at its Durgapur plant in West Bengal includes the installation of a Thermo-Mechanically Treated (TMT) mill with a production capacity of 1.4 MMTPA. The company will also add a blast furnace with a capacity of 0.9 million tonnes at this plant. Additionally, the Durgapur steel plant will undergo modernization as part of this expansion plan.
Expansion Plans of Steel Authority of India in Jharkhand & Odisha
SAIL has completed Pre-Feasibility Report (PFR) studies and appointed a consultant to prepare the Detailed Project Report (DPR) for expanding operations at its Bokaro plant in Jharkhand. Moreover, the company plans to add about 1 million tonnes of casters at its production facility in Rourkela, Odisha.
Adoption of New Technologies for Decarbonization
As part of its expansion plans, SAIL is focused on reducing carbon emissions by adopting new technologies for steel production.
The company has already achieved approximately a 20% reduction in emissions. SAIL is now developing time-bound action plans to reach a target of less than 2.3 tonnes of CO2 emissions per tonne of crude steel by 2030-31, with a net zero emissions goal set for 2070.
Impact of Chinese Steel Imports on India’s Domestic Steel Markets
China, the world’s largest steel producer, has been selling steel at low prices, prompting many Steel-consuming companies worldwide, including in India, to turn to Chinese imports. This surge in imports has impacted domestic steel producers.
Mr. Amarendu Prakash, Chairman and Managing Director of SAIL said that the steel industry is closely monitoring Chinese imports following the United States’ increase in tariffs on shipments from Beijing. India had imposed anti dumping duty on steel products from China in September 2023.
India was a net importer of finished steel during FY-24, during which Chinese exports accounted for the majority of India’s Steel imports. Steel shipments from China reached 2.7 Million Metric Tonne in FY-24, almost twice of India’s Steel imports from China during FY-23. In a May 2024 report, Reuters had quoted Mr. Alok Sahay, Secretary General at Indian Steel Association as: “We are highly vulnerable to surging and predatory import”. Therefore SAIL’s expansion plans assume significance for the Indian Steel industry.
About Steel Authority of India Ltd. : Steel Authority of India Ltd., a maharatna company established in 1973, is one of the largest steel producing companies in India. Currently, SAIL operates five integrated steel plant and three special steel plants in India.