SAIL Plans ₹6,500 Crore Capex Investment for FY25: CMD Amarendu Prakash.

Steel Authority of India Ltd (SAIL) has announced plans to invest ₹6,500 crore towards capital expenditure during the current financial year as part of its broader ₹1 lakh crore investment strategy over the next few years, disclosed SAIL CMD Amarendu Prakash on Friday.

Speaking to the media at an event organized by the Indian Steel Association, Prakash highlighted the steel industry's concerns regarding the influx of low-cost Chinese steel into India and expressed hope that measures would be taken to address this issue.

"This year, our capex target is ₹6,500 crore. Additionally, we have ongoing capex for maintenance and debottlenecking of our facilities. The major expansion capex of ₹1 lakh crore by 2030 will commence from FY26 onwards. In the first phase, we aim to increase our capacity from 20 million tonnes to 35 million tonnes per annum by 2031. Subsequently, we plan to further increase it to 50 million tonnes," stated the SAIL CMD.

Earlier disclosures by SAIL management indicated plans for a ₹1 lakh crore investment across its plants, focusing on both greenfield and brownfield expansions over the next 3-4 years, while maintaining a debt-equity ratio of 1:1.

Discussing the steel market outlook, Prakash noted global growth at 0.5% compared to India's impressive 13% growth last year, projecting an 8% compound annual growth rate (CAGR) for the country over the next decade.

Regarding the import of inexpensive steel from China, he underscored that various countries globally have adopted different measures such as increased import taxes, and he anticipated calibrated steps from India in response.

"There are multiple dimensions to trade measures. It's not just about percentages. We need to consider the quality and pricing of steel entering India," Prakash emphasized.

Last year, India extended anti-dumping duties on certain types of Chinese steel for an additional five years, aiming to safeguard domestic producers amidst global trade dynamics.

ET