The Steel Authority of India Limited (SAIL) has approved a capital expenditure of ₹7,500 crore for the fiscal year 2025‑26, aiming to accelerate its capacity expansion roadmap. This marks a substantial increase from the ₹5,700 crore allocated in the previous fiscal year, as officially disclosed in Parliament.
SAIL’s strategic target is to elevate crude steel production to 35 million tonnes per annum (MTPA) by 2030, up from its current capacity of approximately 20 MTPA. Management has outlined a phased investment approach encompassing brownfield and greenfield expansions, debottlenecking enhancements, and upgrades across key integrated plants. Proposed projects include a new TMT bar mill, pellet plants across multiple facilities, and modernisation at Durgapur, Rourkela, Bhilai, Bokaro, and other steel works.
To support this growth, SAIL is pursuing a two‑pronged financial strategy. The company plans to continue reducing its debt burden—already lowered by around ₹750 crore in the prior year—and will leverage improved operational performance and internal accruals alongside capital markets and debt instruments for funding. The selected mix aims to maintain a balanced debt-to-equity profile while enabling sizeable capex execution.
Industry observers note that the ₹7,500 crore outlay is part of a broader capacity buildup plan pegged at around 35 MTPA by 2030, potentially involving cumulative investments of ₹1–1.1 lakh crore over the mid-term horizon. The emphasis on debt reduction and internal financing reflects SAIL’s intent to preserve fiscal discipline amid expansion.
SAIL leadership has emphasised that the FY26 capex will support both capacity growth and environmental initiatives. The strategy includes investments in energy-efficient technology and green steel production pathways, aligning with evolving policy frameworks focused on low-carbon manufacturing.
With India’s infrastructure demand accelerating, SAIL’s investment trajectory positions the company to capture domestic steel requirements. Successful execution will depend on timely project rollouts, cost control, and effective financing—factors critical to meeting its 35 MTPA target.
