Indian state-owned steel producer Steel Authority of India Limited (SAIL) announced that it has planned a capital expenditure of INR 120 billion ($2.24 billion) for the financial year 2012-13.
At SAIL's annual general meeting held on September 21, the company chairman and managing director C.S. Verma expressed confidence in the growth of the Indian steel industry driven by the increased infrastructure investment and higher pace of urbanization. India's per capita finished steel consumption stands at 57 kg, below the world average of 214.7 kg.
According to SAIL's statement, the modernization and expansion program being implemented at an expenditure of around INR 720 billion ($13.46 billion) targets, also addresses the need for eliminating technological obsolescence, achieving energy savings, enriching product-mix, reducing pollution and developing mines and collieries, as well as, higher production volumes.
Additionally Mr. Verma stated that the company is determined to meet its enhanced requirement of iron ore from captive sources, by improving production from existing mines and by developing new mines at Rowghat in Chhattisgarh and Chiria in Jharkhand.