The expansion of SAIL's production capacity to 50 million tonne per annum will be done in two phases, company's Chairman Anil Kumar Chaudhary has said.
In December 2018, Chaudhary announced an expansion plan for the company. He had said that by 2030-31, the PSU would ramp up production capacity to 50 MTPA from about 21.4 MTPA at present.
"The expansion will be in two phases. In the first phase, we intend to reach 35 MTPA by 2025-2026, and the rest 15 MTPA in the second phase will be completed by March 31, 2031," he said.
He further said the country needs steel over a period of time and as demand grows the supply grows too.
"In steel industry, 100 percent capacity utilisation takes time. It takes at least three years for the capacity to be ramped up. In first year 50 percent can be achieved, In second year 70 percent, In third year 90 percent and then may be in fourth year you see 100 percent capacity utilisation," the chairman said.
According to an industry expert, to add 1 million tonne of capacity, it would cost around Rs 6,000 crore. SAIL, under Ministry of Steel, is the country's largest steel producer.
The PSU has set 17.5 million tonne steel production as target for the new financial year.
The company produced 16.3 MT of crude steel during 2018-19 financial year, registering a rise of 8 percent over the previous year.