(SMM Flash) SAIL's Bhilai Steel Plant to Expand Crude Steel Capacity by 3.44 Mtpa

Bhilai Steel Plant (BSP), the flagship unit of Steel Authority of India Ltd (SAIL), has signed an Engineering, Procurement, Construction and Management (EPCM) consultancy agreement with MECON Ltd to expand its crude steel production capacity by 3.44 million mt per annum (Mtpa).

The expansion will increase BSP's annual crude steel production capacity from 7 million mt to 10.2 million mt by 2030-31, strengthening its position as one of India's largest integrated steel plants and supporting the country's rising steel demand driven by infrastructure and economic growth.

Under the agreement, MECON will provide end-to-end consultancy services covering project planning, engineering, procurement management, construction management and overall project execution to ensure timely implementation. The EPCM contract was signed on July 11 by senior officials from BSP and MECON.

According to the Ministry of Steel, the expansion is expected to enhance production capability, improve operational efficiency through the adoption of advanced technologies and support SAIL's long-term objective of increasing domestic steel production.

The agreement follows "Samanvay-2026," a vendor collaboration meet organised by BSP in June, where more than 200 delegates representing over 100 technology providers, engineering firms, equipment manufacturers and project partners discussed the execution roadmap for the expansion. During the event, BSP said the project forms a key part of SAIL's plan to increase its overall annual crude steel capacity to 35 million mt by 2030, in line with the Indian government's target of achieving 300 million mt per annum of national steelmaking capacity by 2030-31.