SAIL to invest Rs 70,000 cr on mills, mines in next 3 years

New Delhi : Government-owned Steel Authority of India Ltd (SAIL) is planning to invest Rs 70,000 crore in the next two to three years to expand its hot metal capacity to 23.46 million tonnes per annum (mtpa) from 13.8 mtpa at present, to meet increasing demand from the infrastructure sector.

“The investment includes modernisation and expansion of iron ore mining capacity. But the success of this expansion would depend on availability of iron ore from captive sources,” C S Verma, chairman, told Business Standard.The Union ministry of environment and forests has granted SAIL approval for the Budhaburu lease of the Chiria iron ore mine. Clearances for Sukri-Latur and Dhobil leases of Chiria are in advanced stages of approval.

SAIL has engaged Hatch Associates of Australia, a consultant of global repute, for preparation of a Detailed Project Report for the mine. “Initially, a mechanised mine with state-of-the-art technology will be developed to produce seven mtpa in the first phase and 15 mtpa in the second phase,” Verma added.

“As part of our expansion plan, two new blast furnaces, will be functioning at Rourkela and Burnpur, which will increase inherent capacity to 19.5 mt from the present 14 mt by the end of current financial year. Another new blast furnace will be coming during 2012-13,”.