SAIL incurs Rs 44,536 cr on capex in 7 yrs
However, the company has spent only `8,933 cr in FY13
Our Mumbai Bureau
State-run Steel Authority of India (SAIL) has incurred capital expenditure of Rs 44,536 crore over the past seven years, out of the proposed Rs 61,870 crore, so as to raise the annual capacity to 20.23 million tonne. The expenditure was mere 28 per cent of the total proposed amount. For the year 2012-13, the company managed to spend just Rs 8,993 crore on capex, the lowest since 2009-10, according to an internal note of the state- owned company. In April, the first month of the current fiscal, it spent Rs 424 crore on ramping up the capacity. SAIL has been expanding capacity at all its major steel plants at Rourkela, Bokaro, Durgapur, Bhilai and IISCO.
The Rs 61,870 crore capex plans for raising saleable steel-making capacity was kick-off in 2006-07 with Rs 101 crore investment. It gathered momentum the following year, during which the company had spent Rs 1,060 crore. SAIL spent Rs 4,195 crore on capex in 2008-09; Rs 9,495 crore in 2009-10, Rs 10,210 crore in 2010-11 and Rs 10,059 crore in 2011-12. Of the total, Rs 39,131 crore was earmarked for capacity expansion; Rs 7,039 crore for value-addition or product-mix improvement; Rs 3,509 crore for technological up-gradation or modernisation and Rs 6,909 crore for de-bottlenecking.