SAIL Confident of Growth, to Invest $800 Million in New Rail Mill

In a bid to solidify India’s rail infrastructure, the state-run Steel Authority of India Limited (SAIL), has unveiled plans to invest around $800 million to set up a new rail mill. SAIL Chairman Amarendu Prakash had on Tuesday, February 27, announced the signing of the contract of purchase registration with these two companies.

The location of the proposed facility has not yet been revealed, but according to industry sources, it is likely to be set up at SAIL’s Bhilai Steel Plant (BSP). BSP also has a 2 million metric ton per year Universal Rail Mill (URM), one of the largest rail-producing units in India.

Even though there are no confirmed orders from his biggest customer, Indian Railways (IR), Prakash has expressed full faith in the investment. “I know for certain that railways will not reach anywhere and if I set up a mill, they will have to buy from me. That sort of confidence comes when we know the policies are growth-oriented and likely to be sustained,” he said.

SAIL has been in conversation with Indian Railways for seven years now to assess the demand going forward and prepare its production plans in sync. SAIL shall use this first-of-kind technology at its new state-of-the-art rail mill, which shall not only double its rail capacities but also strengthen SAIL’s position in the domestic steel market.

This investment solidifies SAIL’s long-term presence in infrastructure development despite uncertain demand forecasts. The company’s decision also reflects a broader optimism about India’s economic growth and the expansion of its railway network.