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SAIL Plans Rs 24,000 Crore Investment in Greenfield Steel Plant at West Bengal

Steel Authority of India Ltd (SAIL) is considering an investment of Rs 20,000-24,000 crore for the establishment of a four-million-tonne greenfield steel plant at its IISCO facility in West Bengal. Officials indicate that the plan involves the production of high-end flat hot rolled coil (HRC), including applications for the automotive industry, at the existing Burnpur site.

The IISCO steel plant director-in-charge, Brijendra Pratap Singh, mentioned that they have received in-principle approval for the greenfield plant targeting grades like API and automotive. While board approval is pending, Singh anticipates it shortly. The exact capital expenditure and investment details will be finalized after the tendering process.

After exploring joint ventures with foreign partners, SAIL has opted to independently undertake the flat steel expansion project, likely relying on imported technology. The project aims for completion within the next 3-4 years. Regarding IISCO’s performance, Singh stated that the plant currently operates a 2.6 million-tonne crude steel plant, with 85-90% converted into finished products like TMT bars, wire rods, and heavy structures.

Despite sluggish market prices, higher production is expected to result in an ending revenue of Rs 11,500- Rs 12,000 crore for the current fiscal year. SAIL had previously communicated a planned Rs 1 lakh-crore investment across its plants for greenfield and brownfield expansions over the next 3-4 years, maintaining a debt-equity ratio of 1:1. In the current fiscal year (2023-24), SAIL’s estimated capex is Rs 5,500 crore, with Rs 2,100 crore already infused in the first half.

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