Union Budget: Govt proposes Rs 21,756-cr outlay for steel PSUs
Markets will look to consolidate in the week ahead after most event risks like monetary policy and budget now over.
The government today proposed an increased outlay of Rs 21,756 crore for public sector steel units with a view to boosting their capacity expansion programmes.
In the Budget for 2012-13, Finance Minister Pranab Mukherjee has estimated Rs 14,500 crore investment in Steel Authority of India (SAIL), Rs 1,942 crore in Rashtriya Ispat Nigam (RINL), Rs 4,655 crore in NMDC, Rs 409 crore in KIOCL and Rs 208 crore in Managanese Ore India Ltd among others.
The government had planned to invest Rs 21,064 crore in steel PSUs in the current fiscal. However, the amount was subsequently revised downward to Rs 16,828 crore.
Out of the Rs 14,500 crore investment proposed in SAIL, a major portion of Rs 4,717 crore will go to the steel maker's Bhilai Steel Plant and Rs 1,215 crore to Durgapur Steel Plant.
SAIL's Rourkela plant will get Rs 3,200 crore, Bokaro Rs 1,980 crore and IISCO Rs 2,615 crore. The raw material division of the company has been allocated Rs 340 crore.
The Finance Ministry has allocated Rs 1,942 crore to RINL for expansion of its production capacity.
Out of the Rs 4,655 crore outlay for NMDC, Rs 3,513 crore has been earmarked for its 3 mtpa steel plant in Chhattisgarh.
"Balance of plan outlay has been made for projects like Bailadila Deposit -11B, Kumarswamy Iron Ore Project, pelletisation plant at Donimalai and for acquisition in India and abroad," Mukherjee said while presenting the Budget.
KIOCL would spend its Rs 409 crore allocation mainly for coke oven plant, development of permanent railway sliding at Mangalore and construction of bulk material handling capacity.
Managanese Ore India Ltd would spend its Rs 208 crore outlay on its joint ventures with SAIL and RINL.
