Steel Authority of India (SAIL) is considering an investment ranging from Rs 200-240 billion to establish a four-million-tonne greenfield steel plant at its IISCO plant in West Bengal. It has intentions to produce high-end flat hot rolled coil (HRC), including for automotive applications, at its existing Burnpur site and has received in-principle approval.

Brijendra Pratap Singh, the director-in-charge of the IISCO steel plant, informed PTI, "In-principle approval has been received for the greenfield plant that will produce flat HR coils, targeting grades like API (American Petroleum Institute) and automotive, among others."

He further mentioned, "Board approval is still awaited, but is expected shortly." Singh stated that the exact capex and investment details would be finalised after the tendering process.

After various delays and discussions regarding potential foreign partners for a joint venture, SAIL has ultimately decided to undertake the flat steel expansion project independently, possibly relying on imported technology. The completion of the project is anticipated within the next 3-4 years, he added.

Discussing IISCO's performance, Singh noted that the plant currently operates a 2.6 million-tonne crude steel plant, converting 85-90 per cent into finished products such as TMT bars, wire rods, and heavy structurals.

He anticipates the plant to achieve an ending revenue of Rs 115- Rs 120 billion for the current fiscal year due to higher production despite sluggish market prices.

In the past, SAIL management had conveyed to investors about a planned Rs 1 trillion investment across its plants for greenfield and brownfield expansions over the next 3-4 years, while aiming to maintain a debt-equity ratio of 1:1.

For the current fiscal year (2023-24), SAIL's capex is estimated at Rs 55 billion, of which Rs 21 billion has already been infused in the first half.