SAIL to Double Steel Capacity to 50 MTPA by 2030

SAIL to Double Steel Capacity to 50 MTPA by 2030

Indian Market
by 5paisa Research Team Last Updated: 2022-08-08T18:46:27+05:30

Steel Authority of India Limited (SAIL) has laid out an elaborate plan to double its steel manufacturing capacity from the current 23 million tonnes per annum (MTPA) to over 50 MTPA  by 2030. This phase of expansion will begin from 2023-24, after the ongoing expansion program is completed.

 

SAIL Plant

Current Capacity

Phase 1

Phase 2

Capacity by 2030

Durgapur

2.50 MTPA

7.50 MTPA

Nil

7.50 MTPA

Rourkela

3.70 MTPA

8.80 MTPA

Nil

8.80 MTPA

Bokaro

4.60 MTPA

9.50 MTPA

Nil

9.50 MTPA

Burnpur IISCO

2.50 MTPA

3.00 MTPA

7.50 MTPA

7.50 MTPA

Bhilai

7.00 MTPA

Nil

14.00 MTPA

14.00 MTPA

Others

3.00 MTPA

Nil

Nil

3.00 MTPA

 

The capacity expansion across the various plants of SAIL will be spread over two phases. While Durgapur, Rourkela and Bokaro will see capacity expansion in Phase 1, Bhilai will see capacity expansion in Phase 2. The IISCO plant in Burnpur will expand capacity in both the phases. Once the two phases of expansion are completed, the total capacity of SAIL will grow from the current 23 MTPA to 50 MTPA by year 2030.

The total expansion program will entail an investment of Rs.150,000 crore. SAIL has already procured a 30-year mining lease for iron ore in Rajasthan’s Bhilwara district to ensure steady supply of iron ore for steel production. This expansion is part of the National Steel Policy 2017, which had envisaged India’s steel output to grow 3-fold to 300 MTPA by the year 2030 with SAIL having one-sixth market share.

Steel companies have been in a structural rally in the last one year as is evident from the stock prices which have grown multi-fold. There has been a massive demand for steel coming domestically and from abroad. The global steel shortage has also ensured that steel prices remain buoyant on the London Metals Exchange (LME). The expansion seeks to make the best of this robust demand.
 

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