SAIL plans 3 million tonne plant in Afghanistan; seeks partner

Posted By: Religare
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SAIL plans 3 million tonne plant in Afghanistan; seeks partn
The largest domestic steel producer, SAIL or Steel Authority of India has apparently planned to set up a new steel plant in Afghanistan offering a capacity of up to three million tonnes per year. To lead this project, SAIL is reportedly looking for a strategic partner amongst link-minded large companies since setting up the plant will involve an estimated investment of Rs. 14,000 crore.

So far, the proposal for this plant has been discussed with Afghanistan"s minister for mines Wahidullah Shahrani under the strategy of gaining larger control over mining operations of their country.

In a recent bid opened for acquisition of the Hajigak iron ore mines in Afghanistan, SAIL has showed keen interest to purchase and develop their mining sector as the company already holds large scale mining activities for its captive iron ore base.

Sources pointed out that there could be a possibility of SAIL teaming up with other steel and iron ore mine trade names from India like Vizag Steel"s RINL and NMDC to acquire the Hajigak mines.

Regarding the financial performance, the net sales of SAIL were recorded at about Rs. 1.19 crore along with a net profit of Rs. 1.5 lacs approximately for the quarter ended 31st March 2011.

Read more about: steel, bse, nse, metal
Story first published: Tuesday, May 24, 2011, 9:30 [IST]
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