SAIL to invest Rupee 1.5 lakh crore to increase capacity

Unveiling SAILs newly formulated vision document,the company chairman CS Verma said besides the ongoing expansion and modernisation programme,SAIL diversify its product mix to achieve a 50 million tonne capacity by 2025.

Seeking to allay the apprehensions that SAILs borrowing capacity may be impacted due to tight liquidity position and increased lending costs,Verma pointed out that his company has a net worth of Rs 41,000 crore and retains a borrowing capacity of Rs 82,000 crore.

Today our borrowing is Rs 21,000 crore and most of the expenditure on the ongoing expansions is over. So,we will be generating more net worth, he said. The SAIL chief added that the company has enough land bank and necessary infrastructure to construct fresh projects.

He refused to agree that 300 million tonne target is an ambitious one saying if China could produce 800 million tonne per annum from 190 million tonne in ten years,then there is no reason that India cannot do the same.

Verma ruled out any slide in steel demand saying the countrys current consumption is hovering around 57 kg,which is far below the global average of 214.7 kg and Chinas average of 459.8 kg.

He announced that SAIL has been given an iron ore mine at Bhilwara in Rajasthan where the firm has planned to construct a 2 million tonne pellet plant by investing around Rs 2,500 crore.