SAIL to increase production capacity

SAIL to increase production capacitySAIL (The Steel Authority of India Limited), the state run leading steel maker, plans to increase its present crude steel capacity of 13 Metric Ton to 60 Metric Ton in 2020 through Brownfield and Greenfield expansion.

India, currently ranked fourth, is targeting second spot for largest steel maker after current leader China which is followed by Japan and South Korea.

SAIL Chairman S K Roongta said, “SAIL is presently undertaking Brownfield expansion from present crude steel capacity of 13 MT to 23.7 MT in 2012. Further, we envisage reaching a level of 60 MT crude steel capacities by 2020 through Brownfield, Greenfield expansions and acquisitions".

Stating that the domestic demand for steel will hike the production capacity in India, Roongta said that increased infrastructure projects will come as a savior. "Even iron ore will be diverted to domestic market instead of exports, if there is increased local consumption by steel industries," he pointed out.

Roongta said that the land acquisition hurdles, insufficient infrastructure, capital moving into more profitable business and less availability of coking coal are impediments for the growth of this sector.