The Indian government is considering setting up a separate vertical structure within Steel Authority of India Ltd (SAIL) to focus exclusively on mining activities to boost iron ore production. The proposal is being discussed at the Steel Ministry level and structural details are being worked out, a senior ministry official stated.
"The ministry is discussing this with SAIL. The structure of the vertical is currently being evaluated and once it is finalized, it will be forwarded to SAIL and further steps will be taken," the official noted, stressing that the initiative is in line with SAIL's long-term growth plans. It was reported that the new organization will focus on investments, especially in iron ore production.
2030 target: 35 million tons of capacity
SAIL aims to increase its total annual steel production capacity to 35 million tons by 2030. A sustainable and efficient growth strategy in the production of key raw materials such as iron ore is critical to this goal.
India's third largest iron ore producer
SAIL has a strong network of 15 iron ore mines in the states of Jharkhand, Odisha and Chhattisgarh. With this infrastructure, the state-owned company, under the administrative control of the Ministry of Steel, is one of India's largest integrated steel producers and the country's third largest iron ore producer.
According to the company's 2024-25 production data, a total of 33.78 million tons of iron ore was produced. In addition, 0.59 million tons of coke, 0.84 million tons of thermal coal, 1.31 million tons of limestone and 0.40 million tons of dolomite were produced.
The realization of the new vertical structure will play a critical role for SAIL to increase the security of raw material supply, improve efficiency in production processes and move more firmly towards capacity expansion targets.
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