The Steel Authority of India Limited (SAIL) has decided to defer its planned capital expenditure of ₹36,000 crore to FY27 as the company faces increasing concerns over its growing debt burden. The state-owned steelmaker had earlier announced ambitious investment plans to expand production capacity and modernise facilities to meet the rising domestic and export demand for steel.
The decision to push the capex timeline reflects SAIL’s cautious approach to balancing expansion with financial stability. The company’s debt levels have increased in recent years due to higher input costs, volatile steel prices, and increased working capital requirements.
Industry experts believe that delaying the capex will help SAIL manage its leverage more prudently while reassessing market conditions and funding options. SAIL had outlined the ₹36,000 crore investment to enhance its steelmaking capacity, upgrade technology, and support sustainability initiatives, including energy efficiency and emissions reduction measures.
However, the revised timeline suggests that major capacity additions and modernisation projects will now take place closer to FY27 rather than the earlier proposed schedule.
Officials indicated that the company remains committed to its long-term growth and modernisation goals but intends to take a measured approach to capital allocation in light of current financial pressures. The deferral will allow SAIL to focus on improving operational efficiency, cost optimisation, and debt reduction before undertaking large-scale investments.
Analysts note that while the delay could temporarily slow capacity expansion, it is a prudent move considering global steel price fluctuations and the need for financial discipline. SAIL’s decision highlights the challenges faced by the steel sector in balancing growth ambitions with capital structure stability.
The company is expected to revisit its investment plans as market conditions improve and debt levels become more sustainable.
