Steel Authority of India Limited (SAIL) has launched an expansion and modernization project for its IISCO Steel Plant in Burnpur, West Bengal, with an estimated investment of INR 458.11 billion. The project will add a new plant with a capacity of 4.6 million tonnes (mt), increasing the total installed capacity of the IISCO facility to 7.1 mt by 2029.
The new plant will focus on producing advanced steel grades for applications in sectors such as automobiles and consumer durables. Currently, the existing facility primarily manufactures bars and rods used in construction. The planned facilities include a hot strip mill (HSM), pickling line coupled to tandem cold mill (PLTCM), continuous galvanising line (CGL), continuous annealing line (CAL), and colour coated line (CCL).
SAIL received environmental clearance for the project on June 4 and has started the tendering process. According to data submitted by SAIL for environmental clearance, the project is expected to create approximately 500 direct and 6,500 indirect jobs during the construction phase. Once operational, the facility is projected to employ around 3,092 people directly and generate 2,408 indirect jobs.
Experts suggest that the addition of advanced facilities is likely to encourage the growth of downstream industries, which could result in significant employment generation. The movement of raw materials such as coal and iron ore, as well as finished products like bars, rods, and plates, is also expected to create economic activities along the logistics chain.
SAIL, which has earmarked a capital expenditure of INR 75 billion for FY 2025-26, also plans to undertake the expansion of other integrated steel mills under its fold, including Durgapur, Rourkela, Bokaro, and Bhilai, in phases.
The projects at Burnpur and Durgapur are being planned at a time when Bengal has not attracted many large-scale investments, particularly from the private sector. Industry observers note that the state continues to face a perception issue regarding investor-friendliness when compared to states like Maharashtra, Tamil Nadu, and Karnataka.
The IISCO Steel Plant has previously undergone modernization to improve production capabilities. As part of these efforts, Nippon Steel Engineering and its subsidiary were recently awarded a contract to supply a Coke Dry Quenching system for a SAIL facility that includes the IISCO plant.
The IISCO plant, originally established in 1918 by Bengali industrialist Biren Mookerjee, played a key role in developing India’s indigenous steel industry. The company became nationalised in 1972 after facing financial difficulties and was merged with SAIL in 2006, giving SAIL access to land in Burnpur and iron ore mines in Chiria, Jharkhand.
Steel Authority of India Limited is a state-owned steel producer with operations across the country, involved in steel production and processing for various industrial sectors.