The Steel Authority of India Ltd (SAIL) proposes to set up a 5-million tonne facility at the Bokaro Steel Plant premises in addition to the current capacity expansion plans. If approved, the new plant estimated to cost Rs20,000 crore, would take Bokaro Steel's overall capacity to 13-million tones by 2020.
The plant would help SAIL counter competition in the sector where capacity additions go side by side with mergers and acquisitions across the globe.
The initial plan for the new facility has been approved by Bokaro Steel and would soon be put up before the SAIL board for its approval, BSL managing director V K Srivastava said.
Bokaro Steel has embarked on a phased expansion of capacity whereby BSL's capacity will go up to 6.5-million tonnes in the next two- three years. The company plans to invest Rs500 crore in the first phase, which would end in 20011-2012.
The company would invest Rs1,600 crore under the current plan to install a new cold rolling mill with a capacity of 1.3-million tonnes at BSL to cater to the needs of auto sector.
Srivastava said, during the second phase of expansion the company would further expand capacity to 8-million tonnes. The proposed greenfield facility will take BSL's total capacity to 13-million tonnes by 2020. BSL has lined up overall investment of Rs34,000 crore as it tries to strengthen its hold in the domestic market. ''We are trying to hasten the process of the completion of the Phase 1 of expansion by 2010 itself which will go a long way in securing our leadership in the market,'' Srivastava added.