Steel Authority of India (SAIL) is likely to invest Rs 20,000-24,000 crore for setting up a four million tonne (MT) greenfield steel plant at its IISCO plant in West Bengal.

The company has received in-principle approval for the greenfield plant which will produce flat HR coils, targeting grades like API (American Petroleum Institute) and automotive among others. Meanwhile, it is still awaiting for the Board's approval. The project is expected to be completed within the next three to four years.

The exact capex and investment details would be finalised after the tendering process. After discussions regarding potential foreign partners for a joint venture, SAIL has decided to undertake the flat steel expansion project independently. The company expects the plant to achieve an ending revenue of Rs 11,500-12,000 crore for the current financial year due to higher production.

The existing plant currently operates a 2.6 MT crude steel plant and converts 85-90 percent into finished products like TMT bars, wire rods, and heavy structurals. In the past, SAIL management had informed investors about a planned Rs one lakh crore investment across its plants for greenfield and brownfield expansions over the coming years.