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Journalism of Courage
State-run Steel Authority of India Limited (SAIL) is planning to invest nearly Rs 5,000 crore for overhauling its mineral evacuation infrastructure in the Chiria mines,the company said today. Exuding confidence that the PSU would complete its ongoing Rs 70,000 crore expansion and modernisation (E&M) programme by 2012-13,SAIL chairman C S Verma said that the company would retain its position as the market leader and was progressing firmly towards establishing its global footprint.
Raw material security continues to be the backbone of our enhanced production plans. So far,we have decided to invest about Rs 5,000 crore to mechanise the iron ore-rich Chiria mines,which has recently been given the green clearance by the environment ministry. This investment is part of our efforts to concretise SAILs backward integration, Verma told The Indian Express. SAIL has also decided to create a full-fledged forest management division for Chiria to oversee the utilisation of Rs 20 crore meant for maintaining the ecological aspects of mines located in Jharkhands West Singhbhum region for the next five years .
The chairman said that the company would invest around Rs 4,000 crore more for further mechanising its other mines. The PSUs captive iron ore mines have a total reserve of about 5 billion tonne. SAILs Expansion & Modernisation (E&M) programme is aimed at ramping up its production capacity to 124 MT by 2012-13. Dismissing any possibility of SAIL facing any problem if there was a glut in the market following completion of its expansion plans he said that as against the world average per capita steel consumption of 180 kg,Indias consumption in the rural areas was merely 3 kg. This consumption is bound to grow. We expect the global steel demand to grow between 3-5 per cent. India is poised contribute sizeably, SAIL chairman said. Total steel production in the country is nearly 67 MT. Our modest expectations are that domestic consumption of the metal is likely to be 110 MT by 2012,200 MT by 2020 and about 500 MT by 2050. If the government is planning to invest one trillion dollars in the 12th Plan period for the infrastructure sector,then this projected consumption does not appear to be exaggerated he said.
SAIL is also firming up plans to set up greenfield plants in Indonesia and Mongolia by utilising their raw material reserves,Verma said. Although he did not spell out the quantum of investment,steel ministry sources said the PSU has earmarked an initial corpus of around Rs 25,000 crore to fructify them.
