Thursday, November 21, 2013

SAIL on expansion drive; to invest Rs 70,000 cr on mines and steel plants

SAIL's Bhilai plant
AS A part of its expansion of steel-making capacity, state-owned Steel Authority of India Ltd (SAIL) plans to raise the iron ore production capacity to 43 million tonne per annum by 2015-16 from the existing 28 mtpa. The country’s largest steelmaker is also in the process of investing...
Rs 70,000 crore on its mines and steel plants. SAIL, which is also the second-largest iron ore producer after NMDC, believes that with the expansion at the mines, it will achieve 58 mtpa iron ore production by 2020. SAIL also plans to raise production capacity of its Kiriburu mines to 5.5 mtpa from 4.25 mtpa. SAIL is also planning to increase production capacity at Meghataburu and Bolani mines to 6.5 mtpa and 10 mtpa, from 4.3 mtpa and 4.1 mtpa, respectively.
SAIL also plans to raise its Gua mine's production capacity to 10 mtpa from 2.4 mtpa now. There are proposals to raise capacity of its Barsua, Kalta and Taldih mines to 6.5 mtpa from 3.3 mtpa.
The major boost in iron ore production might come from the Rowghat mine, where the Maharatna PSU plans to produce 12 mtpa iron ore. SAIL has already received all statutory clearances for the mine to develop.
In fact, India’s largest steelmaker is on an ambitious mode. With a turnover of Rs 49,350 crore, the company is among the seven Maharatnas of the country's Central public sector enterprises. With its five integrated steel plants, three special plants, and one subsidiary in different parts of the country, SAIL aims higher to emerge as one of the top ten global steel companies by 2025. Its Vision 2025 will steer SAIL towards a target of 50 million tonnes per annum (MTPA) capacity, in line with Prime Minister’s call for production of 300 mtpa by 2025. “This will not only enhance SAIL’s contribution to nation building but will put SAIL among the top steel companies globally,” it was stated by chairman of SAIL CS Verma while outlining the company’s ambitious plans to shareholders at the company’s 41st Annual General Meeting recently.
He told the shareholders: "The new 4060 m3 Blast Furnace at RSP, which is the largest in the country, has become operational in August, 2013. Bringing about a quantum jump of 2.5 million tonne in our hot metal capacity, this marks a new chapter in the modernization and expansion of our company.”
SAIL is likely to operationalize projects worth more than Rs 15,000 crore during the balance part of the current financial year increasing the hot metal production capacity by around 5.0 MTPA.
With a robust growth in the current fiscal, SAIL has bucked global trends. The company registered a 16 percent hike in sales in the month of August ’13 by selling 10.86 lakh tonnes of steel products compared to 9.38 lakh tonnes in same period last year (CPLY). During April-August ’13, the cumulative steel sales stood at 47.8 lakh tonnes, a growth of 7 percent.
The government has also granted mining lease for 871 hectares in Bhilwara district in Rajasthan to SAIL. Further, the company is also making efforts to develop new coking coal blocks at Tasra and Sitanala. 

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