"By the end of 2013 SAIL's annual production would be enhanced to about 24 MT from the existing 14 MTPA. For this Rs 72,000 crore is being invested on expansion programmes," SAIL chairman C S Verma told reporters here.
Entire modernisation and expansion work would be completed in a phased manner in all steel plants of SAIL which seeks to raise its capacity to 40 to 60 MT per annum after eight years, as per its 2020 vision document, he said. Out of Rs 72,000 crore, an amount of Rs 10,500 crore would be spent in Raw Material Division (RMD), Verma said adding Rs 56,000 crore will be spent in purchasing machinery for expansion and modernisation of units. About Rs 32,000 had already been spent.
An amount Rs 12,000 crore would be invested in Rourkela Steel Plant (RSP) for completion of expansion and modernisation in phased manner to increase capacity from 2 MTPA to 4.2 MTPA, the SAIL chief said. On Natural Gas allocation, SAIL chairman said all statutory provisions were met. As forest and environment norms in mining activities become more stringent, SAIL is complying with these norms for getting licenses.
To a query on Jagdispur steel plant in Uttar Pradesh, he said construction work is nearing completion. However, power plant is yet to be set up. Verma, however, declined to project the profit figure in SAIL during the current fiscal.
To another question, the SAIL chief said no concrete step has so far been taken to take over Nilachal Ispat Nigam Ltd in Odisha but expressed optimism on possible tie up with Posco. "We are hopeful of having Posco-SAIL joint venture and discussion is on," he said.