SAIL plans to inject ₹6,500 Crore towards FY25 capex

8 Jul 2024 , 01:20 PM

Steel Authority of India Ltd (SAIL) would invest ₹6,500 Crore in capex this year as part of its ₹1 Lakh Crore investment plan over the next few years, according to CMD Amarendu Prakash on Friday (July 5).

Speaking to media on the sidelines of a programme organised by the Indian Steel Association in Hyderabad, Prakash stated that the steel industry approached the government seeking measures to control China’s dumping of cheap metal into India and hoped that steps would be taken to address the problem.

This year’s capex target is ₹6,500 Crore. We also have annual capital expenditures to maintain our facilities, as well as debottlenecking exercises. Most of the capex expansion (₹1 Lakh Crore by 2030) will begin in FY26. In the first phase, we increase capacity from 20 million tonnes to 35 million tonnes per annum by 2031. In the next phase, we will increase it to 50 million tonnes,” the SAIL CMD stated.

SAIL also announced plans to invest ₹1 Lakh Crore in greenfield and brownfield plant expansions over the next 3-4 years, with a debt-equity ratio of 1:1.

He stated that the globe is growing at 0.5%, whereas India expanded at 13% last year and will continue to develop at an 8% CAGR over the next 10 years.

Regarding the entry of cheap steel from China, he stated that governments across the world have taken various steps, such as increasing import taxes, and India is also expected to take calibrated moves.

Trade measures can be handled in a variety of ways. So it’s not just a single % figure. We need to see the quality of steel that is coming to India, as well as the pricing at which it is arriving, according to the official.

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