This will increase SAIL’s capacities by around 75 percent to 35 million tonnes per annum by 2030.
May 17, 2024
The major expansion plans for both greenfield and brownfield projects of the Steel Authority of India Limited (SAIL), involving a whopping amount of INR 1,00,000 crore, have received approval from both the Board and Ministerial levels.
Mr. Amarendu Prakash, Chairman and Managing Director of SAIL, said that the capex will increase the capacities of the state-owned steel-maker by around 75 percent to 35 million tonnes per annum by 2030.
Speaking to a leading business newspaper, Mr. Prakash said the company was further working on a ‘detailed decarbonization plan’ to decrease its carbon footprint.
He said the board has already approved a greenfield expansion plan for IISCO Steel Plant in West Bengal to hike capacity to 4 million tonnes per annum. As per media reports, the mill was expected to produce higher grade hot rolled coil (HRC) and American Petroleum Institute (API) grade steel products for the oil & gas sector and steel for making automotive components. It was expected to be completed in about four years. IISCO’s current capacity stood at 2.6 million tonnes per annum crude steel per year, converting 85 percent of it to rebar, wire rods and heavy structural products.
As per the media, the pre-feasibility report studies (PFR) for expansion at Bokaro steel plant have been completed and a consultant has been appointed for preparation of DPR.
Further, the process for brownfield expansion and modernization at the Durgapur Steel Plant in West Bengal has been initiated and plans were submitted in October. While a product mix was under-discussion, sources said there would be a new TMT mill of 1.4 million tonnes per annum coming up as part of the expansion plan.
A part of the huge amount would go into the introduction of new technologies, whereby embedded carbon emissions in steelmaking would be substantially lower. SAIL’s decarbonization plan has been phased in three distinct time zones.
SAIL has already achieved around 20 per cent reduction in phase-I of decarbonization. The company was preparing time-bound action plans to achieve less than 2.3 tonnes of crude steel of CO2 emissions by 2030-31, and aimed at achieving a net zero emission target in 2070.
Mr. Prakash confirmed that a decarbonisation plan was being worked out, which would be announced formally by next month.
The state-owned steel maker was also looking at ramping up the operations at Mozambique, where the company had gained access to coking coal mines through a joint venture – International Coal Ventures Ltd (ICVL).
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Mr. Prakash said that some tests were under-way on determining the nature of the coal, the ash content and other factors. These should be through by August, after which the ramp up in ops will happen. This would double the capacities from the current 2 million tonnes per annum to 4 million tonnes per annum.
He said the industry was keenly watching Chinese imports after the United States raised tariffs on shipments from Beijing.
US President Joe Biden had last week announced steep tariff hikes on several Chinese imports, including steel. Mr. Prakash said the import scenario was changing every month, adding that they were keenly watching the developments, after the US hiked tariffs.
