SAIL plans Rs11,262 crore capex to double Bhilai Steel Plant capacity

Mumbai: The Steel Authority Of India Ltd (SAIL) will invest Rs11,262 crore to nearly double production capacity at its Bhilai Steel Plant (BSP) to seven million tonnes per year.

Bhilai plant has a capacity to produce 3.93-million tonnes per year at present.

The company''s board has given its in-principle approval to the proposed modernisation and expansion, SAIL said in a statement.
SAIL has appointed MECON as consultants for BSP''s expansion plan. This includes installation of a new blast furnace, new coke oven battery and a new sinter plant.

Post-modernisation, BSP would become a 100 per cent continuous casting plant with addition of a new four-million-tonne steel melting shop.

BSP produces long steel products, including rails.

The expansion plan envisages installation of a universal beam mill of one million tonne capacity to produce beams up to 1.1-metre depth. New bar and rod mill capacity of 0.9 million tonne will be created.
To meet the growing demand from railways, a new rail mill of 1.2 million tonne. capacity would also be installed.

The board of directors of SAIL had already given in-principle approval for expanding crude steel capacity at IISCO to 2.5 million tones, and of Bokaro Steel Plant to 7 million tonnes.

SAIL shares gained Rs1.75 or 1.57 per cent at Rs112.90 during intra-day trading on the Bombay Stock Exchange (BSE).