NEW DELHI | February 25, 2016: SAIL will invest over Rs 10,200 crore on mine development as the domestic steel giant embarks on a modernisation and expansion programme, the Parliament was informed on Wednesday.

The Maharatna PSU’s modernisation and expansion drive is to enhance its steel production capacity from 12.8 million tonnes per annum (MTPA) to 21.4 MTPA at an indicative investment of Rs 61,870 crore, Minister of State for Steel Vishnu Deo Sai said in a written reply to Rajya Sabha.

The programme is being undertaken at the SAIL’s facilities in Bhilai, Bokaro, Rourkela, Durgapur and Burnpur as well as the special steel plant at Salem.

“Besides, a provision of Rs 10,264 crore has also been made towards investment in mines,” Mr. Sai said.

On raising of funds for the modernisation and expansion programme of steel PSUs, he said the same were arranged through internal resources and borrowings by the companies.

To a query on demand and supply of steel, Mr. Sai said with a crude steel production capacity of about 101 MT (million tonnes) in 2013—14, India produced about 87.67 MT of finished steel with an apparent consumption of about 74.09 MT. In 2014-15, with a capacity of about 110 MT, the country produced around 91.45 MT of finished steel with an apparent consumption of about 76.99 MT. “Thus India is capable of meeting almost the entire domestic steel demand,” the minister said.

India has witnessed about 75.5 per cent increase year-on-year in imports of total steel in 2014-15 and about 24 per cent increase during April 2015-January 2016.

“The jump in imports is largely on account of global steel glut. Due to this reason, steel is being exported by China and other countries, often at below cost of production. Further, a small quantity of high quality steel, not manufactured locally, are also imported,” he said.

(Source: http://www.thehindu.com/)