The company has signed an Engineering, Procurement, Construction, and Management (EPCM) consultancy agreement with state-owned engineering firm MECON Ltd. to execute the capacity expansion project.
Upon completion of the investment, the plant's annual crude steel production capacity will increase from 7 million tons to 10.2 million tons. The additional capacity of approximately 3.44 million tons is scheduled to be commissioned by the 2030-31 fiscal year.
Under the agreement, MECON will be responsible for project planning, basic and detailed engineering, procurement coordination, construction management, and overall project execution. The EPCM contract between the two parties was signed on July 11.
India's Ministry of Steel stated that the investment will not only increase production capacity but also improve the plant's operational efficiency through the introduction of advanced technologies. The project is considered an important part of SAIL's long-term strategy to expand domestic steel production.
The Bhilai expansion will contribute to SAIL's plan to increase its total annual crude steel production capacity to 35 million tons by 2030. The investment is also among the strategic projects supporting the Indian government's target of achieving an annual steel production capacity of 300 million tons by the 2030-31 period.
SAIL had already accelerated preparations for the expansion through its "Samanvay-2026" supplier collaboration meeting held in June. More than 200 industry representatives, including technology providers, engineering companies, equipment manufacturers, and project partners, attended the event to review the implementation process of the capacity expansion project.
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