SAIL to invest Rs 35k cr on expanding RSP's steel capacity

Capacity to be raised to 10 mnt from four mnt

Public sector steel behemoth Steel Authority of India Ltd (SAIL) would pump in Rs 35,000 crore to expand steel capacity of its unit- Rourkela Steel Plant (RSP) to 10 million tonne (mnt) from four mnt at present.

"By 2025-26, steel capacity of RSP would be expanded to 10 mnt. For the expansion, we would invest Rs 30,000-35,000 crore. SAIL had spent Rs 12,000 crore on modernisation cum expansion plan of RSP that scaled up the plant's capacity from two mnt to four mnt. We have installed the biggest blast furnace at RSP," said SAIL chairman C S Verma after a meeting with Union steel secretary R K Singh and top officials of Odisha government here. Verma said, SAIL's total capacity of all units was expected to reach 50 mnt by 2025-26. Total steel capacity of the country is projected at 300 mnt by then.

SAIL has already applied for new iron ore mine leases to cater to the expansion of its Rourkela unit.

Asked on additional leases sought by the steel maker, Verma said, "We have requested for new iron ore mines. The state government said, it is fully committed to meet our raw material requirement".

The SAIL chairman said, the company has executed the lease deeds with the Odisha government for operation of its Bolani and Barsuan mines.

It may be noted that the Bolani and Barusan iron ore mines held by SAIL went off operation in May this year after the Supreme Court, in an interim order, directed the state to shut down 26 iron ore and manganese mines awaiting second and subsequent renewal unless the government permitted them to run through the express orders.

Complying with the apex court's order, the state government in June, issued the express orders under Section 8 (3) of Mines and Minerals- Development & Regulation (MMDR) Act, 1957 enabling eight mines, including those held by SAIL to restart operation.

On picking up stake in Neelachal Ispat Nigam Ltd (NINL) by SAIL, Verma said, "We had earlier given a proposal for acquiring stake in NINL. MMTC hold 49 per cent stake in NINL. SAIL would be interested to pick up a controlling stake."