The global recession and the resultant demand slump has delayed Steel Authority of India Limited's ambitious Rs 70,000-crore (Rs 700-billion) expansion plan for the second time in as many months, as it would now be completed by 2012-13 only.
The PSU steel major has now set a target of completing the mega project--aimed at augmenting its annual production capacity to 23.46 million tonne from the present 14.6 MT-- to 2012-13 from the earlier deadline of 2011-12.
"The present modernisation and expansion plan of SAIL envisages increasing hot metal production from 14.6 million tonne per annum to 23.46 MT in Phase-I, to be completed by 2012-13," steel minister Virbhadra Singh told the Rajya Sabha in a written reply on Friday.
Because of the lingering recession, the PSU was in July forced to revise downward its planned production capacity from 26.18 MT to the current target of 23.46 MT.
Prior to the economic crisis, the Navratna firm had set an ambitious target of augmenting its capacity to 26.18 MT by 2010-11.
But later, it delayed the deadline by a year saying that 2011-12 was the actual target. SAIL now plans to add the remaining about three million tonne at a later stage which would depend on 'market situation.'
"Further increases in the production of hot metal to 26.18 MT per annum would be taken up in Phase-II, depending on the market situation," Singh told the Upper House.
