Synopsis
On February 11, Minister Bhupathiraju Srinivasa Varma announced a capital expenditure hike for SAIL to Rs 7,500 crore for 2025-26, detailing the allocation for CSR projects and addressing industry concerns regarding steel imports.Key Takeaways
- SAIL's Capex for 2024-25 is Rs 5,700 crore.
- SAIL's Capex for 2025-26 is Rs 7,500 crore.
- Focus on CSR spending in local communities.
- Steel imports under scrutiny by the industry.
- Government facilitates steel sector growth.
New Delhi, Feb 11 (NationPress) The capital expenditure (Capex) for SAIL has been set at Rs 5,700 crore for the fiscal year 2024-25 and Rs 7,500 crore for 2025-26, as announced by Minister of State for Steel, Bhupathiraju Srinivasa Varma, during a Lok Sabha session on Tuesday.
This Capex encompasses payments for milestones achieved on completed projects, payments for ongoing initiatives, and SAIL's share of capital expenditure in joint ventures, he highlighted.
The minister also mentioned that the steel industry has lodged petitions to initiate investigations regarding imports of flat steel products, including Cold Rolled Non Oriented (CRNO) and hot rolled coils.
The steel sector operates in a de-regulated environment, with the government facilitating growth through the establishment of favorable policies.
Decisions to set up steel plants are driven by the industry based on techno-commercial evaluations, taking into account factors such as availability of raw materials, logistics, and market access, he explained.
In response to another inquiry, the minister stated that SAIL has allocated Rs 18.37 crore in the first half of 2024-25 for Corporate Social Responsibility (CSR) initiatives, adhering to the stipulations outlined in Section 135 of the Companies Act, 2013 and related CSR Rules, primarily in areas surrounding steel townships and mining sites.
Key focus areas include promoting education and health, empowering women, generating sustainable incomes through self-help groups, providing aid to divyangjan (differently-abled individuals), ensuring access to water and sanitation, village development, environmental sustainability, sports coaching, and the promotion of traditional arts and culture.
In the fiscal year 2023-24, SAIL also invested Rs 161.93 crore in CSR projects, which includes Rs 78.26 crore for ongoing initiatives. The steel giant has executed CSR projects in aspirational districts such as Kanker, Narayanpur, and Rajnandgaon in Chhattisgarh; Bokaro, West Singhbhum, and Ranchi in Jharkhand; and Banka in Bihar during 2023-24, the minister noted.
To assess the overall impact of its CSR initiatives, SAIL conducts impact assessment surveys for selected projects, ensuring alignment with societal needs and CSR policies, he added.
