SAIL to invest Rs 6,500 Cr towards capex in FY 25: CMD

NEW DELHI: The Steel Authority of India Ltd (SAIL) will invest Rs 6,500 cr towards capital expenditures (capex) during the current FY, as part of a more extensive Rs 1 lakh crore investment plan over the next few years, said SAIL CMD Amarendu Prakash on Friday.

The announcement was made during a programme organised by the Indian Steel Association.

Prakash emphasised the industry’s plea to the government for measures to curb the dumping of cheap metal by China into India. ‘We hope steps will be taken to address this issue,’ he said.

The capex target for the year is set at Rs 6,500 crore, including regular maintenance and debottlenecking exercises. The expansive Rs 1 lakh crore capex is expected to begin flowing from FY26.

In a phased approach, SAIL aims to increase capacity from 20 million tonnes to 35 million tonnes per annum by 2031 and eventually to 50 million tonnes. SAIL had previously informed investors of its Rs 1 lakh crore investment plans across its plants for both greenfield and brownfield expansions while maintaining a debt-equity ratio of 1:1.

On global steel outlook, Prakash noted that while the world grew at 0.5 per cent last year, India grew by 13 per cent and is projected to sustain an 8 per cent CAGR over the next decade. Addressing the import of cheap steel from China, Prakash highlighted that nations have taken steps like increasing import taxes. India is also expected to implement calibrated measures. According to reports, India has extended the anti-dumping duty on certain Chinese steel for another five years.