State-run Steel Authority of India (SAIL) invested Rs 424 crore on its capacity expansion project during April 2013, the company’s internal note shows.
It may be noted that the country’s largest steel maker has been expanding capacity at all its major steel plants in Rourkela, Bokaro, Durgapur, Bhilai and IISCO.
In the last seven years, the firm invested Rs 44,536 crore, out of the proposed 61,870 crore to raise the annual capacity to 20.23 million tonne.
In 2012-13, the company invested Rs 8,993 crore for the project and this is said to be the lowest since 2009-10.
Union Steel Minister Beni Prasad Verma asked the firm to expedite the expansion project and said its profitability can improve only if the projects are completed and stabilised within a short period of time.
The Rs 61,870 crore capex plan for raising saleable steel -making capacity was kick-off in 2006-07 with Rs 101 crore investment. It gathered momentum the following year, during which the company had spent Rs 1,060 crore.
The company spent Rs 4,195 crore on capex in 2008-09; Rs 9,495 crore in 2009-10, Rs 10,210 crore in 2010-11 and Rs 10,059 crore in 2011-12.