New Delhi: The global recession and the
resultant demand slump has delayed Steel Authority of India's
ambitious Rs 70,000-crore expansion plan for the second time
in as many months, as it would now be completed by 2012-13
only.
The PSU steel major has now set a target of completing
the mega project--aimed at augmenting its annual production
capacity to 23.46 million tonne (MT) from the present 14.6
MT-- to 2012-13 from the earlier deadline of 2011-12.
"The present modernisation and expansion plan of SAIL
envisages increasing hot metal production from 14.6 million
tonne per annum to 23.46 MT in Phase-I, to be completed by
2012-13," Steel Minister Virbhadra Singh told the Rajya Sabha
in a written reply today.
Due to the lingering recession, the PSU was in July
forced to revise downward its planned production capacity from
26.18 MT to the current target of 23.46 MT.
Prior to the economic crisis, the Navratna firm had set
an ambitious target of augmenting its capacity to 26.18 MT by
2010-11. But later, it delayed the deadline by a year saying
that 2011-12 was the actual target.
SAIL now plans to add the remaining about three million
tonne at a later stage which would depend on "market
situation."
"Further increases in the production of hot metal to
26.18 MT per annum would be taken up in Phase-II, depending on
the market situation," Singh told the Upper House.
PTI
First Published: Friday, November 20, 2009, 19:04