Indian state-run steel producer Steel Authority of India Limited (SAIL) has firmed up an estimated investment of $2.89 billion to construct a 4 million mt per year greenfield steel mill at its existing IISCO Steel Plant in the eastern state of West Bengal, a company official said on Tuesday, February 6.
The official said that SAIL’s board of directors has given in-principle approval for the greenfield mill to produce higher grade hot rolled coil (HRC) and API (American Petroleum Institute) grade steel products for the oil and gas sector and steel for making automotive components.
SAIL had been looking to woo a foreign partner for the expansion of IISCO Steel Plant, an exclusive long product producer, and to widen its product portfolio. But following delays in securing a partner, SAIL has decided to go it alone sourcing the necessary technology from abroad.
The new mill is expected to be completed within three to four years, the official said.
The IISCO mill currently produces 2.6 million mt of crude steel per year, converting 85 percent of it to rebar, wire rods and heavy structural products.