SAIL Goes Big: ₹20,000-24,000 Crore Green Steel Plant in West Bengal

Steel Authority of India (SAIL) is poised to make a substantial investment ranging between Rs 20,000 to 24,000 crore towards establishing a state-of-the-art four million tonne (MT) greenfield steel facility at its IISCO plant located in West Bengal.

Having secured preliminary approval for this ambitious venture, which will specialize in the production of flat HR coils catering to diverse segments including API (American Petroleum Institute) and automotive, SAIL eagerly awaits the Board's final endorsement. The envisaged timeline for completion spans three to four years.

The precise details regarding capital expenditure and investment allocations will crystallize post the completion of the tendering process. After considering potential collaborations with foreign partners for a joint venture, SAIL has opted to pursue the flat steel expansion project autonomously.

Buoyed by robust production levels, SAIL anticipates the new plant to contribute significantly to its top line, targeting an annual revenue in the range of Rs 11,500 to 12,000 crore for the ongoing fiscal year.

Presently, the existing plant operates a 2.6 MT crude steel facility, with a substantial portion, approximately 85-90 percent, being processed into finished products such as TMT bars, wire rods, and heavy structurals.

This ambitious endeavor is part of SAIL's broader strategic vision, as it had earlier communicated to investors its intention to invest approximately Rs one lakh crore across its facilities for both greenfield and brownfield expansions in the foreseeable future.

News by Rahul Yelligetti