Published On:May 18 2024
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SAIL Secures ₹1 Lakh Crore for Expansion, Advances De-Carbonisation Strategy: Amarendu Prakash

SAIL Secures ₹1 Lakh Crore for Expansion, Advances De-Carbonisation Strategy: Amarendu Prakash

The Steel Authority of India Ltd. (SAIL) has received approvals for a massive ₹1,00,000 crore capital expenditure plan, aimed at both greenfield and brownfield projects. This initiative will increase the state-owned steel maker's capacity by approximately 75 percent to 35 million tonnes per annum (mtpa) by 2030, according to Chairman and Managing Director Amarendu Prakash.

Additionally, SAIL is developing a detailed decarbonisation plan to reduce its carbon footprint. “Approvals at Board and Ministerial levels for the ₹1-lakh crore capex have been received, and we will start the work soon,” Prakash told businessline.

For FY24, SAIL's capex is set between ₹5,500 and ₹6,000 crore, expected to rise significantly for greater capacity expansion. The board has approved a greenfield expansion at the IISCO Steel Plant in West Bengal, increasing its capacity to 4 mtpa. This plant will produce higher-grade hot rolled coil (HRC) and American Petroleum Institute (API) grade steel for the oil and gas sector and automotive components. The expansion is projected to be completed in four years. Currently, IISCO produces 2.6 mtpa of crude steel, converting 85 percent into rebar, wire rods, and heavy structural products.

At the Bokaro steel plant, pre-feasibility report studies are completed, and a consultant is preparing a detailed project report. The Durgapur Steel Plant in West Bengal is also set for brownfield expansion and modernisation, with plans for a new 1.4 mtpa TMT mill.

Part of the capex will introduce new technologies to significantly lower embedded carbon emissions in steelmaking. SAIL’s decarbonisation strategy includes phased goals, with a 20 percent reduction already achieved in phase-I. The company aims to reduce CO2 emissions to less than 2.3 tonnes per tonne of crude steel by 2030-31 and achieve net-zero emissions by 2070. “A formal decarbonisation plan will be announced next month,” Prakash added.

SAIL is also considering ramping up operations at its Mozambique coking coal mines through its joint venture, International Coal Ventures Ltd (ICVL), doubling capacities to 4 mtpa from the current 2 mtpa. Tests on coal quality are underway and expected to conclude by August, after which operations will be scaled up. Investments for this ramp-up were previously pegged at ₹1,500 crore.

Prakash highlighted that the Indian steel industry is closely monitoring Chinese imports after the United States raised tariffs on Chinese steel. The U.S. President Joe Biden recently announced significant tariff hikes on Chinese imports, causing concerns among Indian steel makers about a potential influx of cheaper Chinese steel. “The import scenario is changing every month, and we are keenly watching it after the U.S. hiked tariffs,” Prakash noted.

HBL





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