SAIL approves ₹31,000 crore expansion of Bhilai Steel Plant to boost capacity to 10.2 MTPA

Steel Authority of India Limited (SAIL) has taken a major step towards expanding India’s steel manufacturing capacity after granting in-principle approval for a ₹31,000 crore expansion of its flagship Bhilai Steel Plant in Chhattisgarh. The project will increase the plant’s steelmaking capacity from the existing 6.8 million tonnes per annum (MTPA) to 10.2 MTPA, reinforcing SAIL’s long-term strategy to meet the country’s rising demand for steel.

The announcement was made by Minister of State for Steel Bhupathi Raju Srinivasa in a written reply in the Lok Sabha. According to the government, the expansion project is expected to be completed within 42 months and will generate both direct and indirect employment during the construction as well as operational phases.

Located in Bhilai, the integrated steel plant has played a significant role in India’s industrial development for decades. It remains the exclusive supplier of rails to Indian Railways and manufactures a wide range of rail products, heavy structural steel, plates and sheets. The facility is also home to the Universal Rail Mill, which produces 130-metre single-piece rails among the longest manufactured anywhere in the world.

The proposed expansion forms part of SAIL’s broader strategy to strengthen domestic steel production while supporting the government’s infrastructure development plans. Higher production capacity is expected to improve the company’s ability to cater to demand from sectors such as railways, construction, engineering and infrastructure.

The government said the project will source raw materials primarily from SAIL’s captive mines, supplemented by domestic and imported supplies wherever required. This integrated sourcing strategy is expected to ensure a stable supply of essential raw materials throughout the expansion period.

India’s steel demand has continued to grow steadily, driven by large-scale investments in infrastructure, manufacturing and urban development. Capacity expansion projects by leading steel producers are therefore becoming increasingly important to meet future consumption requirements while reducing reliance on imports.

With the Bhilai expansion, SAIL is strengthening one of its most strategically important manufacturing facilities, positioning the company to play a larger role in India’s next phase of industrial and infrastructure growth.