Indian state-run steel producer Steel Authority of India Limited (SAIL) will cut total debts by around $2.65 billion by the end of the current fiscal year 2023-24, a reduction of about 12 percent from the last fiscal year, company sources have said.
The sources said that reduction of debt and deleveraging of the company will achieve the target debt to equity ratio of 1:1 and so the company will be geared to raise fresh funds for capital expenditure over the next two years.
SAIL has a planned capital expenditure of $662 billion in the fiscal year 2023-24 and a similar amount for the fiscal year 2024-25. However, total capex will peak during fiscal year 2027-28 when new projects will commence.
Capex in 2023-24 and 2024-25 will for debottlenecking operations across SAIL’s mills and the construction of two casters as its Rourkela and Bhilai mills, adding annual capacity of 2 million mt. These projects will cost an estimated $36 million, while the remaining capex will be spent on maintenance and upgrade projects, the sources said.