In order to expand capacity of its flagship Bolani iron ore mines in Odisha, Steel Authority of India (SAIL) is reportedly planning to invest Rs 255 crore. The company will augment the capacity of Bolani mines to 10 million tonne per annum (mtpa) by 2020 from five mtpa. This is part of the company's larger plan to secure raw material supplies from its captive mines to cater to its steel capacity expansion
The current iron ore requirement of SAIL owned steel units is 29.15 mtpa but this is expected to shoot up to 39 mtpa as the steel maker eyes hot metal output of 23.46 mtpa. Bolani mines forms the crucial captive operations of SAIL as it feeds iron ore to the plants at Rourkela, Durgapur, Bokaro and Burnpur.
SAIL is India's largest steel producing company. The company is among the five Maharatnas of the country's Central Public Sector Enterprises. The company has five integrated steel plants, three special plants, and one subsidiary in different parts of the country.