The global slowdown in steel consumption has now begun to impact the expansion plans of domestic players. The state-run Steel Authority of India (SAIL), the country’s largest steelmaker is likely to cut its ambitious Rs78,000 crore expansion by approximately 13%. The move is expected to save the steel major about Rs10,000 crore, according to sources close to the development.
SAIL had finalised its expansion plan some years ago to elevate itself to a company with global operations. The strategy had included raising capacity from the existing 14 million tonnes to over 26 million tonnes by 2011-12.
The board of the steel major is expected to take a final decision on the move sometime next week. However the overall target of steel production under the expansion programme is expected to remain unaffected.
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