SAIL expansion costs shoot up by Rs5,000 crore
03 Nov 2007
Mumbai:
The Steel Authority of India Ltd, the country''s largest
steel producer, said its finances may come under pressure
due to cost overruns of a whopping Rs5,000 crore in its
expansion and modernisation programmes, slated for completion
by 2010.
"Steel Authority of India Limited''s (SAIL) modernisation
and expansion (E&M) costs have shot up to nearly Rs54,000
crore from the envisaged Rs49,000 crore. Besides, it is
unlikely to complete its modernisation programmes in time
(by 2010)," a source close to the developments said.
The
source said the costs have shot up because MECON, which
had made recommendations for SAIL''s corporate plan-2012,
had not firmed up the E&M costs nor had it factored
in different aspects before submitting its suggestions.