SAIL, NMDC and RINL line up Rs 15,000-cr capex next fiscal
Metal and mining PSUs SAIL, NMDC and RINL plan to invest nearly Rs 15,000 crore next fiscal towards modernisation and expansion, around Rs 2,000 crore less than the projected outlay for the current fiscal.
New Delhi: Metal and mining PSUs SAIL, NMDC and RINL plan to invest nearly Rs 15,000 crore next fiscal towards modernisation and expansion, around Rs 2,000 crore less than the projected outlay for the current fiscal.
According to the "broad plan" prepared by the respective firms, Steel Authority of India (SAIL) will spend Rs 9,000 crore next fiscal, followed by iron ore miner NMDC Rs 4,345 crore and Rashtriya Ispat Nigam (RINL) Rs 1,600 crore.
The three firms, under the Steel Ministry, had budgeted Rs 18,584 crore investment towards modernisation and expansions for current fiscal, but it was later revised at Rs 15,820 crore. Till October, they have spent Rs 8,032 crore, an official document revealed.
In 2014-15, SAIL plans to spend Rs 3,300 crore on its Bhilai Steel Plant, as part of its ongoing Rs 72,000 crore modernisation and expansion programme to take its capacity to 24 million tonnes per annum (mtpa) from 14 mtpa now.
The company also plans to invest Rs 2,234 crore in its Rourkela Steel Plant, Rs 1,280 crore in IISCO plant, Rs 800 crore in Durgapur plant and Rs 860 crore in the Bokaro plant among others.
Meanwhile, close to achieving the 24 mtpa capacity, SAIL has recently unveiled plans to take it to 50 mtpa by 2025 entailing another Rs 1.5 lakh crore investment.
The proposed expansion to 50 mtpa is in line with Prime Minister Manmohan Singh's vision of enhancing country's steel - making capacity to 300 mtpa by 2025, from around 95 mtpa at present.
NMDC, country's largest iron ore producer, plans to spend Rs 3,070 crore in the next fiscal on "continuing schemes" of expansion, Rs 240 crore on "new schemes", Rs 400 crore on business development and Rs 335 crore on "investment in other ventures" etc.
Of the Rs 1,600 crore investment that RINL is planning to spend in the next fiscal, Rs 400 crore has been earmarked for the ongoing 6.3 mtpa expansion at its Vizag facility. It also plans to invest Rs 400 crore on modernisation and upgradation of the blast furnaces, steel melting shop and sinter plant.