The Greenfield steel plant will have a capacity of 4 million tonnes and produce high-end flat hot rolled coil. It is expected to come up in the next 4 years.
Mar 14, 2024
The Steel Authority of India Ltd (SAIL) is likely to invest INR 20,000-24,000 crore for the establishment of a 4 million tonne greenfield steel plant at its IISCO plant in Burnpur of West Bengal.
Talking to a leading news agency, IISCO steel plant director-in-charge Brijendra Pratap Singh said that they have received in-principle approval for the greenfield plant, which will produce
high-end flat hot rolled coil (HRC), including for automotive applications, targeting grades like API (American Petroleum Institute), among others.
He said the exact capex and investment details would be finalized after the tendering process, adding that the board approval for the same was expected shortly.
One of the largest steel producers in India, SAIL, after numerous delays and discussions regarding potential foreign partners for a joint venture, has decided to finally undertake the flat steel expansion project independently, relying plausibly on imported technology. The project is expected to be completed within the next 3-4 years, said Mr. Singh.
He further said that the plant currently operates a 2.6 million-tonne crude steel plant and converts 85-90 percent into finished products like TMT bars, wire rods, and heavy structurals.
The plant was expected to achieve an ending revenue of INR 11,500-INR 12,000 crore for the current fiscal year due to higher production.
SAIL had earlier announced its plans to invest INR 1 lakh crore across its plants for greenfield and brownfield expansions over the next 3-4 years, while aiming to maintain a debt-equity ratio of 1:1. For the current fiscal year (2023-24), SAIL’s capex is estimated at INR 5,500 crore, of which INR 2,100 crore has already been infused in the first half.
