India’s Minister of State for Steel Mr Faggan Singh Kulaste informed the Upper House of Indian Parliament that the current crude steel production capacity of Steel Authority of India Limited is 20.63 million tonne per annum & that SAIL has planned to raise their crude steel production capacity to 35 million tonne per annum by 2030-31. The proposed scale of indicative investment by SAIL to reach the capacity of around 35 million tonnes per annum of crude steel will be around INR 110,000 crore (USD 14 billion). Mr Kulaste informed “The projects for expansion of capacity for SAIL are financed through a combination of debt and equity which is normally in the ratio of 1:1. The project planning has to go through the preparatory stage before arriving at the stage of execution, where the expenditure is incurred. Since these projects are at preparatory stage, expenditure towards execution of these projects has not incurred.”He added that he land bank study is in progress & preliminary study indicates availability of land for the expansion project envisaged in the first phase.He also said “The intent of New Public Sector Enterprise Policy is to minimize the presence of Government in the Public Sector Enterprises. To make available newer investment opportunities for private sector so as to allow infusion of private capital, technology, innovation and best management practices, allowing public sector to take over or bid for another public sector identified for disinvestment will defeat the purpose. Therefore, it is not possible for SAIL to participate in the bid to acquire RINL.”
India’s Minister of State for Steel Mr Faggan Singh Kulaste informed the Upper House of Indian Parliament that the current crude steel production capacity of Steel Authority of India Limited is 20.63 million tonne per annum & that SAIL has planned to raise their crude steel production capacity to 35 million tonne per annum by 2030-31. The proposed scale of indicative investment by SAIL to reach the capacity of around 35 million tonnes per annum of crude steel will be around INR 110,000 crore (USD 14 billion). Mr Kulaste informed “The projects for expansion of capacity for SAIL are financed through a combination of debt and equity which is normally in the ratio of 1:1. The project planning has to go through the preparatory stage before arriving at the stage of execution, where the expenditure is incurred. Since these projects are at preparatory stage, expenditure towards execution of these projects has not incurred.”He added that he land bank study is in progress & preliminary study indicates availability of land for the expansion project envisaged in the first phase.He also said “The intent of New Public Sector Enterprise Policy is to minimize the presence of Government in the Public Sector Enterprises. To make available newer investment opportunities for private sector so as to allow infusion of private capital, technology, innovation and best management practices, allowing public sector to take over or bid for another public sector identified for disinvestment will defeat the purpose. Therefore, it is not possible for SAIL to participate in the bid to acquire RINL.”
