The Board of Directors of Steel Authority of India Ltd. (SAIL) has approved a brownfield expansion of its Bhilai Steel Plant (BSP) in Chhattisgarh at an estimated investment of around ₹31,000 crore. The project will enhance the plant’s crude steel production capacity from 6.8 million tonnes per annum (MTPA) to 10.2 MTPA, in line with the company’s long-term growth strategy.
The expansion project is targeted for completion by 2030-31 and forms part of SAIL’s broader objective of increasing its overall crude steel production capacity to 35 MTPA by 2030. The modernisation programme will incorporate advanced steelmaking technologies, improve operational efficiency and strengthen the company’s ability to meet rising domestic steel demand.
Bhilai Steel Plant, one of SAIL’s flagship integrated steel facilities, is India’s leading producer of long rails, heavy rails and wide steel plates, catering to sectors such as railways, infrastructure, defence and heavy engineering. The proposed capacity augmentation is expected to further reinforce its strategic role in supporting the country’s infrastructure and industrial development.
Earlier this month, Bhilai Steel Plant signed an Engineering, Procurement, Construction and Management (EPCM) consultancy agreement with MECON Ltd. for the expansion project, marking the beginning of the execution phase. The project includes the addition of 3.44 MTPA of crude steel capacity along with associated upstream and downstream facilities.
SAIL said the investment underscores its commitment to strengthening domestic steel manufacturing capacity while supporting the objectives of the National Steel Policy, which aims to significantly enhance India’s steel production capacity over the coming years.