The Minister of Steel, Beni Prasad Verma informed that the Steel Authority of India Limited (SAIL) has undertaken modernisation and expansion plan at its five integrated steel plants Bhilai Steel Plant (BSP) at Bhilai, Bokaro Steel Plant (BSL) at Bokaro, Rourkela Steel Plant (RSP) at Rourkela, Durgapur Steel Plant (DSP) at Durgapur and IISCO Steel Plant (ISP) at Burnpur and Special Steel Plant (SSP) at Salem.
The project would enhance its crude steel production capacity from 12.8 Million tonne per annum (mn tpa) to 21.4 mn tpa in the current phase.
Verma said, the indicative investment for current Phase of Modernisation and Expansion is Rs 61,870 crore. Besides, a provision of Rs 10,264 crore is made towards investment in existing mines under Raw Materials Division (RMD) and development of Rowghat Mine.
Against this, an expenditure of Rs 44,112 crore has been incurred till March 2013. The funding for modernisation and expansion plan of SAIL is being done through a combination of debt and equity (including internal resources) while maintaining debt-equity ratio of 1:1.
The investment of Rs 12,291 crore for modernisation and expansion plan of Rashtriya Ispat Nigam (RINL), other public sector steel plant under Ministry of Steel, is being funded mainly through internal accruals. RINL has incurred an expenditure of Rs 10,236 crore till March, 2013.
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