SAIL undertakes modernisation, expansion of 5 steel plants
19 March 2015
SAIL has undertaken modernisation and expansion at five of its steel plants to augment its crude steel production capacity to 21.4 MTPA. The indicative investment for the current phase of expansion is estimated at Rs 61,870 crore.
The five integrated steel plants are at Bhilai, Bokaro, Rourkela, Durgapur and Burnpur and a special steel plant at Salem, Minister of State for Steel and Mines Vishnu Deo Sai said in a written reply to Rajya Sabha.
"Steel Authority of India Ltd (SAIL) has undertaken modernisation and expansion of its five integrated steel plants to enhance its crude steel production capacity from 12.8 MTPA to 21.4 MTPA in the current phase," he said.
The minister further said a provision of Rs 10,264 crore has been made towards investment in existing mines and development of Rowghat mine.
The expansion project at Salem steel plant has been completed and all facilities under the integrated process route at Rourkela and IISCO steel plants are in operation, stabilisation and ramp-up, he said.
Deo further said RINL has undertaken modernisation and expansion plan at an estimated cost of about Rs 14,701 crore. Units under stage-1 expansion have been commissioned and are in regular operation, he said.
In a separate reply, he said SAIL will invest about Rs 4,749 crore to augment its production capacity of the iron ore mines of Gua in West Singhbhum district of Jharkhand.
"This includes an outlay of about Rs 2,743 crore to set up state-of the-art crushing, benefication and pelletisation plant facilities," he said.
After expansion, the capacity of Gua mines will increase to 10 million tonnes per annum (MTPA) which includes 6 MTPA of iron ore lumps and fines and 4 MTPA of pellets, the minister said.
SAIL stock price
On March 19, 2015, Steel Authority of India closed at Rs 68.10, down Rs 0.05, or 0.07 percent. The 52-week high of the share was Rs 112.90 and the 52-week low was Rs 55.25.
The company's trailing 12-month (TTM) EPS was at Rs 5.35 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 12.73. The latest book value of the company is Rs 103.30 per share. At current value, the price-to-book value of the company is 0.66.