Steel Authority of India (SAIL), the public-sector giant, has announced plans to establish a cutting-edge steel plant in Burnpur, West Bengal, with an investment of Rs 36,000 crore. This initiative is poised to be the largest industrial project investment in Bengal in recent years.
The new plant, which has received initial board approval, will be located near the existing IISCO Steel Plant and will have a production capacity of 4.08 million tonnes (mt). SAIL is in the process of selecting a vendor to execute the project and aims to finalise the partner by the end of October before seeking secondary board approval.
Scheduled to commence operations by 2029, the plant will be constructed on the site of an old facility. Unlike the existing 2.5 mt plant, which produces long products such as wires, rods, and bars for construction, the new unit will focus on manufacturing flat products like hot and cold rolled coils used in automobiles and consumer durables.
This strategic move is part of SAIL’s broader objective to increase its total production capacity from 20 mt to 35 mt by 2031, involving an overall investment of Rs 110,000 crore. As part of this expansion phase, SAIL plans to enhance capacities at its other locations, including Durgapur, Bokaro, Rourkela, and Bhilai. Pre-feasibility reports for Durgapur and Bokaro are ready, and stage-1 board approval is expected soon.
The Indian Iron & Steel Company (IISCO), established in 1918, marked the advent of the iron and steel industry in India, with its first blast furnace becoming operational in 1922. The company thrived for four decades before encountering difficulties in the mid-1960s, leading to its nationalisation in 1972. By 1979, IISCO became a wholly-owned subsidiary of SAIL and merged with the PSU in 2006.
That year, then Prime Minister Manmohan Singh, alongside Bengal Chief Minister Buddhadeb Bhattacharjee, inaugurated the expansion and modernization of IISCO, which effectively meant building a new plant. Originally slated for completion by 2009-10 at a cost of Rs 9,600 crore, the project faced delays and cost escalations, finally commissioning in 2015 at Rs 16,480 crore. Prime Minister Narendra Modi, with Chief Minister Mamata Banerjee, marked the completion.
The new IISCO plant is expected to stimulate significant economic activity, benefiting regions like West and East Bardhaman, Purulia, and Bankura. Industry experts emphasise the necessity of collaboration between the state and central governments to ensure the success of such a large-scale project. While SAIL has the necessary land, administrative support will be crucial for resolving issues like squatter removal. Given the substantial economic multiplier effect of a steel plant, observers are hopeful that both political entities will prioritise the project's success over any political differences.
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