SAIL's ₹36,000 Crore Expansion Pushed to FY27 Amid Tendering & Financial Closure Delays.

State-owned steel major Steel Authority of India Limited (SAIL) is set to advance its ambitious ₹36,000 crore expansion of the IISCO Steel Plant (ISP), aiming to boost its capacity by 4.5 million tonnes per annum (mtpa) starting from the next fiscal year, FY27.

While the expansion project has received Board approvals, the critical step of financial closure on tenders is still pending. Company officials anticipate these closures to materialize either towards the end of Q3 FY26 or early Q4 FY26 (between December 2025 and March 2026). This timeline indicates that the significant capital expenditure (capex) jump associated with this large-scale expansion is expected to commence from the next financial year (FY27) onwards.

For the current fiscal year (FY26), SAIL has already planned a substantial increase in its capex, with allocations seeing a nearly 25% year-on-year rise to ₹7,500 crore, up from ₹5,700–6,000 crore in the previous year. The public sector undertaking has demonstrated its commitment to these investments, having already spent ₹1,642 crore in the first quarter of the current fiscal, exceeding its internal targets.

This expansion at the IISCO Steel Plant, located in Burnpur, West Bengal, is a crucial part of SAIL's broader strategy to enhance its production capabilities and meet growing steel demand. The project, once completed, is expected to significantly contribute to the company's overall capacity and product portfolio, potentially including advanced steel grades for sectors like automobiles and consumer durables.