DSP to invest Rs 3000 cr by '12, to focus on cost optimisation

With the steel sector showing signs of recovery following the economic slowdown, the Durgapur Steel Plant (DSP) of Steel Authority of India (SAIL) has decided to go ahead with its modernisation plan with a capex of Rs 3,000 crore.

"We will start placing orders for modernisation of the first phase of Rs 3,000 crore within two months. The expansion would be completed in fiscal 2011-12. The plans for the second phase of expansion has not been firmed up as yet," DSP Managing Director V Shayamsundar said here today.

The SAIL board had revised the capex plan post slowdown.

Shayamsundar said once the modernisation was complete, DSP's finished steel production would go up to 2.12 million tonne (MT) from a level of 1.786 MT at present.

DSP has planned to increase its saleable steel production to 2.08 MT in 2009-2010 from 1.786 MT in 2008-09.

SAIL plans to mop up its overall capacity from 13.5 MT at present to 23 MT by 2012 through expansion of all its 5 integrated steel plants and three special steel plants.

The phase I expansion will involve setting up a 1 mt medium structural mill and a 'bloom-cum-round continuous caster'. It will also do de-bottlenecking of material handling facilities.