Country's largest steel producer SAIL plans to approach market for borrowing 50 per cent of its Rs 54,000-crore expansion cost to reach a production capacity of over 26 million tonnes in the next three years.
"We would borrow half the amount for our proposed brownfield expansion in 1:1 ratio of debt and equity. But this would be at an appropriate time," SAIL Chairman S K Roongta said. He, however, said that the remaining investment would be met through internal accruals and the company had already made a provision for the same. Steel major SAIL's total income rose by 34 per cent to Rs 12,660 crore in the second quarter of the current fiscal, while its net profit by over 18 per cent to Rs 2,009 crore. As per its corporate expansion plan, state-run SAIL has envisaged investing about Rs 54,000 crore for scaling up the production capacity of its major steel plants to reach a total output of 26.2 million tonnes (MT). At present, the steel major's total production capacity is close to 15 MT per annum. Besides expanding capacities of its existing units like Bhilai, Bokaro and Rourkela, SAIL also plans to set up a 12-MT greenfield project in Jharkhand with an investment of over Rs 40,000 crore. The Navratna PSU said it would go ahead with the current capacity augmentation, but would review the medium and long-term projects, depending on the market conditions. "We are going ahead with our current plans, but don't know how the long-term plans would shape up. The projects beyond 2012 will depend upon emerging scenario of demand and supply --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
