Steel Authority of India Limited (SAIL) will invest $800 million to establish a new rail mill, Chairman Amarendu Prakash said at the Global Business Summit in New Delhi. The company is proceeding with the investment despite the absence of a confirmed procurement commitment from Indian Railways, its largest customer.
Prakash stated that SAIL has been in discussions with Indian Railways for the past seven years regarding future demand to plan rail production accordingly. The company currently manufactures rails at its Bhilai Steel Plant in Chhattisgarh and forged wheels at the Durgapur Steel Plant in West Bengal.
Separately, Prakash noted that India’s steel production capacity is projected to exceed 300 million tonnes (MT) by 2030, surpassing the target set in the 2017 National Steel Policy. The country’s capacity is expected to grow from the current 180 MT to 330 MT over the next five years.
He also highlighted that the Indian steel sector grew by 14% last year, outpacing GDP growth, and has registered an 11% increase in the first 10 months of the current fiscal year.