Steel giants scale up spending for next fiscal

Steel Authority of India (SAIL) has targeted an investment of Rs.12, 254 crore especially to finance its ambitious expansion plans. Company has decided to generate required funds from its internal and external financial sources. SAIL is pushing up annual steel manufacturing capacity from the current 14 million tons (MT) to about 23 MT by 2012.

Also, National Mineral Development Corporation (NMDC) and Rashtriya Ispat Nigam Limited (RINL) are investing to the tune of Rs. 17, 164 crore for the 2010-11 fiscal. RINL is planning to double steel manufacturing capacity to 6.2 mt entailing an investment of about Rs. 12,000 crore of which the capital expansion stands at Rs. 4,049 crore for the coming fiscal. Country’s largest iron ore producer NMDC is coming out with Follow on Public Offer (FPO) of about Rs. 15,000 crore. The company has decided to spend Rs. 611 crore on the diversification and expansion plans. It has planned a 3 MTPA plant at Chhattisgarh and also forged joint ventures with Tata Steel and Arcelor Mittal in this regard.