Steel industry's capital expenditure to rise to Rs 75,000 cr, says study

Capacity upgrade and freeing up of stress assets to drive investments, says ratings agency Icra

Domestic steelmakers are likely to put Rs 75,000 crore to Rs 80,000 crore in capital expenditure or capex between FY19 and FY21, said ratings agency Icra in a forecast.

Steelmakers' plan to ramp up capacities by 16 million tonnes and freeing up of stressed assets after takeovers will fuel capex, Icra said.

Aided by conducive domestic demand and low greenfield capacities in the medium term, capacity utilisation of the steel companies is projected to remain at 82-83 per cent through FY19 to FY21.

The report is bullish on the profitability of steel companies this fiscal, saying it will improve the