Steel Authority of India Ltd (SAIL) has announced an $800 million investment to build a new rail mill, even though it has not yet secured a confirmed order from its biggest customer, Indian Railways. SAIL Chairman Amarendu Prakash revealed the plans during the Global Business Summit (GBS) in New Delhi, expressing confidence in the long-term demand for rails due to the government’s focus on infrastructure growth.
“Last week, we decided to invest $800 million in a new mill because I am confident that railways will continue to need rails, and they will have to source them from us,” Prakash said. He added that the decision reflects SAIL’s strategic vision and belief in India’s expanding railway network.
SAIL has been in talks with Indian Railways for the past seven years to understand future demand and plan its production accordingly. However, Railways has not provided any guarantees about future rail purchases. “We have been asking them if we should invest in a new mill, but they have not given us any commitment,” Prakash explained.
Currently, SAIL produces rails at its Bhilai Steel Plant (BSP) in Chhattisgarh and forged wheels at the Durgapur Steel Plant (DSP) in West Bengal. The new investment is part of SAIL’s long-term strategy to support India’s railway infrastructure and strengthen its position in the market.
About SAIL
Steel Authority of India Limited (SAIL) is one of India’s largest steel producers and a major contributor to the country’s industrial development. As a Maharatna public sector enterprise, SAIL operates several integrated and special steel plants across India. The company produces a wide range of high-quality steel products for sectors such as infrastructure, construction, railways, defense, and automotive industries.
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