Tuesday, February 12, 2008

Mega Expansions In Pipeline For SAIL

India''s largest steel maker SAIL has some mega expansion plans - both organic and inorganic and not surprisingly both the Centre and State are all out to provide the much needed support. Metal stocks may have escaped the onslaught in the stock markets but that is only one indicator why managements continue to feel bullish on the fundamentals of their companies. Steel Authority of India is now in an investment mode.

Ramvilas Paswan had earlier informed that the Chattisgarh government has allotted the Raoghat Mines for SAIL and by the time SAIL''s expansion would be completed, all the environmental clearances will also be in place. Raoghat mines in Chattisgarh has reserves of 500 MT and this will fulfill SAIL''s Bhilai plant requirement for next 30 years.

But SAIL also wants to expand inorganically and what will help it to do this better is the clarity emerging on merger of Nilanchal Ispat Nigam with itself and consolidation of Bharat Refractory and Maharashtra Elektro Smelt. BRL would address refractory requirement and MEL would provide ferro-manganese requirement of SAIL.NIL would help expand steelmaking capacity by another 1 MT.

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