SAIL’s ₹45,800 Cr Expansion at Burnpur Set to Reignite Bengal’s Industrial Growth

Steel Authority of India Ltd (SAIL) has initiated a huge ₹45,810 crore expansion at its IISCO Steel Plant at Burnpur, West Bengal, to increase steel production, generate employment opportunities, and bring back industrial activity in the area.

The government-owned steel producer initiated tendering after getting green clearance from the Union Ministry of Environment, Forest and Climate Change on June 4. The project, to be completed by 2029, entails the construction of a new steel plant with a capacity of 4.6 million tonnes (mt). On completion, the total installed capacity of the plant will increase to 7.1 mt.

In contrast to the current mill, which produces construction-grade rods and bars, the new facility will have a focus on high-tech steel products for the consumer durable and automobile industries. The facility will comprise advanced state-of-the-art facilities such as a hot strip mill (HSM), pickling line with tandem cold mill (PLTCM), continuous galvanizing and annealing lines (CGL, CAL), and a colour coating line (CCL).

The project will consume 1,165.58 hectares (2,880 acres) of land, which is already available, and is set to create 500 direct and 6,500 indirect construction jobs. In operation, it will sustain 3,092 direct and 2,408 indirect jobs. Experts say that downstream industries and logistics associated with the plant will further enhance employment and activity.

“This expansion will have a multiplier effect on Bengal’s economy,” said Subhodip Ghosh, Director General of the Bengal Chamber of Commerce and Industry. “For every rupee spent, the overall economic output could rise by ₹2.36.”

SAIL Director (Finance) Ashok Panda had earlier confirmed to investors that the PSU is executing a multi-phase capital expenditure plan. For FY 2025-26, SAIL has earmarked ₹7,500 crore, with plans to also expand other major units including Durgapur, Rourkela, Bokaro, and Bhilai.

The Burnpur and Durgapur upgrades arrive at a time when Bengal struggles to attract large-scale private investments. Once home to industrial pioneers, including the original IISCO founded in 1918, the region’s renewed steel push could signal a long-awaited revival.