SAIL sees FY13 capex at $2.9 bn: chairman
State-run Steel Authority of India Ltd will spend about Rs 145 billion on capital expenditure in the next fiscal year, up 15 percent from the current year, adding 5 million tonnes of capacity, its chairman said.
New Delhi: State-run Steel Authority of India Ltd will spend about Rs 145 billion on capital expenditure in the next fiscal year, up 15 percent from the current year, adding 5 million tonnes of capacity, its chairman said.
The company's annual production capacity is expected to rise to 19 million tonnes by the end of the fiscal year that starts in April, Chairman CS Verma said at the Global Steel 2012 Conference on Friday.
SAIL, the country's largest domestic steelmaker, expects local demand for steel to grow 7 percent in the fiscal year to end March 2012, with prices remaining stable.
"We will revise steel prices once coking coal prices stabilises," said Verma. The company raised prices by 15-20 percent after coking coal prices trebled in the current fiscal year, he added.
Margins at India's top steelmakers have been under pressure during the December-quarter because of slowing investments by end-user industries, higher interest costs and foreign exchange losses on import of raw materials.
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The state-owned steel maker, which currently has 14 mtpa capacity, said most of the planned expansion would be carried out through brownfield expansions.
Union Steel Minister Dharmendra Pradhan has directed steel PSUs to adopt the ''<em>Annadaan</em> initiative'' for feeding migrant workers and weaker sections of the society in and around their areas of operation
Tata Steel Ltd has withdrawn its membership from the Indian Steel Association (ISA), an apex steel industry body