Steel Authority of India Ltd (SAIL) is undertaking a 15 million tonne capacity expansion this fiscal despite the uncertainties in the global economy.
It currently produces 70.4 million tonnes of steel.
Mr C.S. Verma, SAIL Chairman, said the impact of global economic conditions on the company was only marginal. “We cannot claim that we are insulated from the global economic developments. But the impact will be marginal,” as India was still a demand-driven economy, he said here.
For instance, the per capita consumption of steel was 55 kg in urban areas against the global average of 200 kg. The Government's infrastructure push will also continue to drive domestic steel demand, he said.
Mr Verma, who is also chairman of NMDC, said the iron ore miner has set aside Rs 1,200 crore for overseas buys. “The capital expenditure for the current year is over Rs 4,500 crore and we will not leave any good deal that comes up,” he said.