State-run Steel Authority of India (SAIL) plans to spend Rs 13,000 crore next fiscal to part-fund ongoing expansion, which will take its installed capacity to over 24 million tonnes per annum (mtpa).
New Delhi: State-run Steel Authority of India (SAIL) plans to spend Rs 13,000 crore next fiscal to part-fund ongoing expansion, which will take its installed capacity to over 24 million tonnes per annum (mtpa).
The proposed investment represents an increase of Rs 1,000 crore than SAIL is expected to put in the current fiscal, but Rs 1,500 crore lower than the budgetary estimate for the current fiscal, the 2013-14 Budget documents revealed.
The entire expenditure proposed for the next fiscal will be funded by SAIL from its internal resources. SAIL has 14 mtpa steel-making capacity and post-expansion, costing a total of Rs 72,000 crore, it will go up to 24 mtpa.
Out of the Rs 13,000 crore capex for next fiscal, Bhilai Steel Plant is proposed to get the highest share at Rs 5,900 crore for installation of a 700 tonnes per day (tpd) oxygen plant, a hot metal de-sulphurisation unit and a railway track.
The second highest fund allocation has been envisaged for Rourkela Steel Plant in which a total of Rs 2,400 crore would be spent for expansion and a 700 (TPD) oxygen plant and a coke oven gas holder, among others.
A sum of Rs 1,800 crore has been earmarked for expansion of SAIL's IISCO Steel Plant and rebuilding a coke oven battery.
The Bokaro Steel Plant of the company would get Rs 1,425 crore for expansion and setting up of a steel processing unit at Bettiah, among others.
An outlay of Rs 900 crore has been proposed to be spent towards capacity expansion at SAIL's Durgapur Steel Plant and installation of a steel processing unit at Kangra.
SAIL also plans to invest Rs 25 crore and Rs 45 crore at Alloy Steels Plant and Salem Steel Plant respectively.
The remaining Rs 505 crore has been provided for its raw material division, Central Units of the firm and Chandrapur Ferro Alloy Plant for various ongoing and new schemes.