SAIL to scale down investment by 22% to Rs.9,000 crore

Highest outlay of Rs2,960 crore has been proposed for the Bhilai plant, followed by Rs1,790 crore for the Rourkela plant 

New Delhi: State-owned steel maker Steel Authority of India Ltd. (SAIL) plans to scale down investment by nearly 22% to Rs9,000 crore on expansion and modernization at 5 integrated plants during the next fiscal.

Highest outlay of Rs2,960 crore has been proposed for the Bhilai plant, followed by Rs1,790 crore for the Rourkela plant. It also plans to invest Rs1,244 crore in Burnpur unit, Rs642 crore in Bokaro unit and Rs588 crore in Durgapur facility. The remaining Rs1,766 crore has been planned to be spent on various schemes such as installation of slab casters, coke oven batteries, oxygen plants and others in various plants, as per the documents of the interim budget 2014-15. 

 

In 2013-14, SAIL is expected to spend Rs11,500 crore, up 18.17% over actual investment of Rs9,731 crore made in the previous fiscal. The company had budgeted Rs13,000 crore total investment for the current fiscal ending 31 March.

 

SAIL is investing Rs72,000 crore to enhance capacity by around 10 million tonnes per annum (MTPA) to 24 MTPA. The ongoing expansion is likely to be completed next fiscal.

 

The other state-owned steel maker Rashtriya Ispat Nigam Ltd. (RINL) has a higher investment plan for 2014-15 at Rs1,724.17 crore as compared to the revised estimate to Rs1,548.72 crore in the current fiscal. Details of investments were not given. Iron ore producer NMDC Ltd. plans to spend Rs4,345 crore next fiscal which is nearly 60% higher than the estimated investment of Rs2,720 crore investment in 2013-14. NMDC had spent Rs1,607.24 crore in the previous fiscal.

 

“The company (NMDC) is also entering into the field of producing high-value products like ferric oxide, iron powder, etc,” the documents state.

 

MOIL Ltd., country’s largest manganese ore producer, plans to invest Rs192.05 crore in 2014-15, up from Rs133.32 crore in 2013-14. The company had spent Rs56.93 crore in 2012-13.

Kudremukh Iron Ore Co. Ltd. (KIOCL) and MMTC Ltd. plan to spent Rs50 crore and Rs45 crore respectively in the next fiscal. Steel ministry controls 10 companies. PTI

 

Source- Livemint.com

 

                 By

Shah Mohammad Abdul Qadir

        PGDM 2nd Sem

IIMT College of Management 

        Greater Noida