Is it true that SAIL is planning an aggressive expansion of steel-making capacity?
Answer
Answer
Steel demand is at an all-time high and steel prices are also buoyant. That is the right time to boost output and SAIL is on track for a massive expansion. As per its latest statement, SAIL plans to double its capacity from the current 23 million TPA of steel to a capacity of 50 million TPA by the year 2030. That is a huge spurt in production capacity and is entirely in line with the broad thrust of the National Steel Policy announced in 2017.
Most of the largest producers of steel in India like Tata Steel and JSW Steel are already aggressively expanding capacity, either organically or inorganically. India is already the second largest producer of steel in the world, next to China. It has overtaken the US, Japan and Korea in the recent past. SAIL has started land bank studies for the next phase of expansion.
The last major expansion was under by SAIL more than 10 years ago when the capacity was hiked from 12.8 MT to 22 MT. SAIL currently operates steel plants at Rourkela, Durgapur, Bokaro, Bhilai, Burnpur and Salem.