SAIL's ₹6,500 Crore Expansion and Steel Sector Challenges

Steel Authority of India Ltd (SAIL) has unveiled plans to invest ₹6,500 crore in capital expenditure for the current financial year as part of a broader strategy to infuse ₹1 lakh crore over the next few years, as revealed by SAIL CMD Amarendu Prakash. This investment aims at enhancing capacity and modernizing facilities across its plants.

Speaking at an event organized by the Indian Steel Association, Prakash highlighted concerns over the influx of low-cost Chinese steel into India. He expressed optimism that measures would be implemented to address this issue effectively.

"This year, our capex target is ₹6,500 crore. We also have ongoing investments for maintenance and enhancing operational efficiency," stated Prakash. The major expansion phase, involving a ₹1 lakh crore investment by 2030, will kick off from FY26, aiming to increase annual production capacity from 20 million tonnes to 35 million tonnes by 2031, with further plans to scale up to 50 million tonnes thereafter.

Discussing the steel market outlook, Prakash noted India's robust 13% growth last year, significantly outpacing global growth at 0.5%. He projected an 8% compound annual growth rate (CAGR) for India over the next decade.

Regarding challenges posed by Chinese steel imports, Prakash emphasized the need for calibrated measures, citing global examples of increased import duties to protect domestic industries. India recently extended anti-dumping duties on certain Chinese steel types for five years to safeguard local producers amidst global trade dynamics.

News by Rahul Yelligetti