SAIL to invest Rs 17,000 crore in Bengal

Kolkata, Sep 11 (UNI) Steel Authority of India (SAIL) is going to invest Rs 17,000 crore in West Bengal this fiscal for modernisation and upgradation of its plants, SAIL Chairman S K Roongta said here today.

" We will invest a total of Rs 17,000 crore. Of this amount Rs 10,000 crore has been earmarked for modernisation of Indian Iron and Steel Company (IISCO), " he told reporters after a meeting with Chief Minister Buddhadeb Bhattacharjee at the state Secretariat.

Mr Roongta, who was in the city to attend an interactive meeting with Merchants Chamber of Commerce, had a two-hour-long meeting with the Chief Minister.

He said SAIL would also spend Rs 6,500 crore for upgradation of Durgapur Steel Plant and Rs 5,000 crore for Alloy Steel, Durgapur, during the period.

Earlier, speaking to reporters on the sidelines of the seminar, the SAIL Chairman said steel prices in the country was expected to remain healthy through this year till March 2008.

" We expect steel prices to remain healthy on the back of the projected demand growth of 16 per cent in 2007-08, " he said.

The SAIL Chairman said the company had targetted to increase production to 26 million ton by 2010 from the present 14 million ton involving an estimated cost of Rs 43,000 crore.

" We will maintain an equal debt equity ratio while financing our expansion projects, " he said.

To a question, Mr Roongta informed that SAIL had a cash surplus of Rs 10,000 crore, likely to be invested in the expansion of production capacity.

SAIL, producing at present 30 per cent of steel produced in India, was aiming at maintaining the share in the country's projected production of 200 million ton by 2020, he said.

To another question, Mr Roongta said SAIL was interested in merger with Rashtriya Ispat Nigam Ltd (RINL) as both companies were able to 'synergise' operation.

" We will gain from RINL's port-based plant and geographical coverage if government approves the merger, " he said.

UNI