SAIL eyes 60 MT production target by 2020
Steel Authority of India aims to raise production capacity to 60 million tons a year by 2020.
By PTI |
KOLKATA: Steel Authority of India Ltd (SAIL) is aiming to raise production capacity to 60 million tons a year by 2020, when the demand for the alloy in the country is projected at 200 million tons.
"The demand for steel in the country has been projected at 200 million tons by 2020 and SAIL will maintain its 30 per cent market share," SAIL Chairman S K Roongta said on Tuesday.
"We are now working on a corporate plan for 2020," Roongta told reporters on the sidelines of an interactive session with the Merchant's Chamber of Commerce here.
Speaking at the session earlier, Roongta said that SAIL was going ahead with its revised plan to increase hot metal production from 13.5 million tons to 26 million tons instead of 22.5 million tons by 2010.
The company had earlier said that it would invest close to Rs 44,000 crore to jack up production, mainly through brownfield expansion in all its five integrated steel plants, including IISCO.
He said 50 per cent of the expenditure for capacity expansion would be met through internal accruals and rest through debt.
Roongta also pitched for the merger of another state-owned entity Rastriya Ispat Nigam Ltd with the company.
"As far as SAIL is concerned, we are for the merger as there are lot of synergies between the two companies," he said.
Stating that merger proposal still existed, Roongta said that the government, which was the owner of both the companies, would have to take a call on it.
"The demand for steel in the country has been projected at 200 million tons by 2020 and SAIL will maintain its 30 per cent market share," SAIL Chairman S K Roongta said on Tuesday.
"We are now working on a corporate plan for 2020," Roongta told reporters on the sidelines of an interactive session with the Merchant's Chamber of Commerce here.
Speaking at the session earlier, Roongta said that SAIL was going ahead with its revised plan to increase hot metal production from 13.5 million tons to 26 million tons instead of 22.5 million tons by 2010.
The company had earlier said that it would invest close to Rs 44,000 crore to jack up production, mainly through brownfield expansion in all its five integrated steel plants, including IISCO.
He said 50 per cent of the expenditure for capacity expansion would be met through internal accruals and rest through debt.
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Roongta also pitched for the merger of another state-owned entity Rastriya Ispat Nigam Ltd with the company.
"As far as SAIL is concerned, we are for the merger as there are lot of synergies between the two companies," he said.
Stating that merger proposal still existed, Roongta said that the government, which was the owner of both the companies, would have to take a call on it.
Roongta said that SAIL has appointed a consultant for the greenfield steel plant that it was planning to set up in Jharkhand.
On the company's MoU with South Korean steel major POSCO, he said that the two companies have formed a joint working group with four officials from each company to give final shape to and implementation of their alliance.
He said that there would be exchange of resources and would include joint marketing, warehouses and service centres in India and overseas.
He said that SAIL would be happy if POSCO and other companies were successful in setting up shop in India.
Roongta said that the company has embarked on cost cutting exercise which led to the annual saving of Rs 700-800 crore.
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On acquiring coal blocks abroad, he said that a special purpose vehicle had been floated by SAIL, Coal India, NTPC and RINL to take equity or majority stake in coal mines outside the country.Start a SIP with as low as ₹500 with ET Money App!
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