SAIL to invest Rupee 1.5 lakh crore to increase capacity - Indian Express

ENS Economic Bureau : New Delhi, Sun Sep 22 2013, 01:04 hrs The country's biggest steel maker SAIL said it would invest Rs 1.5 lakh crore to ramp up its production capacity to 50 million tonne by 2025. The announcement comes close on the heels of Prime Minister Manmohan Singh asking the domestic steel industry to gear up for achieving a production level of 300 million tonne within the next decade. Unveiling SAIL's 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 SAIL's 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 country's current consumption is hovering around 57 kg, which is far below the global average of 214.7 kg and China's 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. ALSO READ Two days, two central bankers catch markets on the wrong foot Rajan unmoved by US Fed effect, prepares shield for tough days ahead India to build world's largest solar power plant in Rajasthan US Fed shows red rag for market's bull run Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHHPeicwtmhXp5OjFN_R0mYzGkQhw&url=http://www.indianexpress.com/news/sail-to-invest-rupee-1.5-lakh-crore-to-increase-capacity/1172436/

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