Steel Authority of India Ltd (SAIL) has announced plans to invest $800 million in setting up a new rail mill, despite not having a confirmed order from its largest buyer, Indian Railways, according to Chairman Amarendu Prakash. Speaking at the Global Business Summit (GBS) in New Delhi, Prakash highlighted the company’s confidence in the long-term demand for rails, driven by growth-oriented government policies.
“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 stated. He emphasized that this decision reflects the company’s strategic vision and trust in India’s expanding railway infrastructure.
SAIL has been engaging with Indian Railways for the past seven years to gauge future demand, enabling better planning for rail production. However, Railways has not provided any assurances regarding future procurement. “We have been asking them if we should invest in a new mill, but they have not given us any commitment,” Prakash noted.
SAIL currently manufactures rails at its Bhilai Steel Plant (BSP) in Chhattisgarh and produces forged wheels at the Durgapur Steel Plant (DSP) in West Bengal. The new investment aligns with the company’s long-term vision to strengthen India’s railway infrastructure and expand its market presence.
Steel Authority of India Limited (SAIL) is one of India’s largest steel producers and a key player in the country’s industrial growth. A Maharatna public sector enterprise, SAIL operates multiple integrated and special steel plants across India, producing a diverse range of high-quality steel products catering to sectors such as infrastructure, construction, railways, defense, and automotive industries.
Headquartered in New Delhi, the company has a strong focus on modernization, sustainability, and technological advancements to enhance production efficiency and environmental responsibility. With a rich legacy spanning decades, SAIL continues to be a pillar of India’s self-reliance in steel production, supporting the nation’s development while expanding its global footprint through exports.
