SAIL likely to add 18-mt capacity by year-end

Public sector steel major SAIL expects to expand its production capacity to 18 million tonnes by the end of current financial year, as it plans to commission two new blast furnaces.

At present, SAIL’s capacity stands at 14 mtpa.

“Two new blast furnaces in Rourkela and Burnpur will be commissioned over the next few months, which will increase our capacity to 18 mtpa,” said Chairman C.S. Verma. He was speaking to reporters after the half-yearly review of the company’s performance by Steel Minister Beni Prasad Verma.

The steel maker is in the midst of modernisation and capacity expansion and has so far spent Rs 39,000 crore of the targeted Rs 72,000 crore. The Minister asked SAIL to expedite the pace of modernisation and achieve targets by the end of the financial year.

Expressing concern over decline in SAIL’s sales, Verma also asked the company to accelerate expansion of existing iron ore mines and scout for coking coal mines abroad.

SAIL registered a 3.3 per cent rise in hot metal production in April-September period of current fiscal at 7.17 million tonnes over the corresponding period last year at 6.88 mt.

Crude steel production grew to 6.76 million tonnes (6.57 mt). The production of saleable steel was up 1.5 per cent at 6.19 mt (6.10 mt).

On the market outlook, the SAIL Chairman said he expected demand to rise in the post-monsoon period. SAIL, he said, had rolled over prices for the current month even though there was a marginal rise of $10-15 per tonne in global prices.

“Prices will be reviewed depending on the market conditions and demand scenario,” Verma said.

> vishwanath.kulkarni@thehindu.co.in

COMMENT NOW