Calcutta, Aug. 16: Steel Authority of India Ltd (SAIL) is set to kick off an ambitious expansion plan worth Rs 25,000 crore to raise the hot-metal capacity from 11 million tonnes to 20 million tonnes by 2012.

The state-run steel maker has begun identifying world-class technology and equipment suppliers as well as strategic partners.

The company will organise a SAIL Interactive-Steel B 2 B meet in Delhi on September 10 where multinational firms, including Voeist Alpine, Manesman Demag, Nippon Steel are expected to participate.

SAIL’s corporate plan, consisting of greenfield and brownfield projects, provided a blueprint for the company’s growth in the coming years in tandem with the growing market.

The plan is divided in two stages. It outlines an immediate investment of around Rs 4,300 crore for completing the de-bottlenecking schemes by 2006-07.

This, in turn, would pave the way for major investments in the next phase that would last up to 2011-12, SAIL spokesman said.

The vendors’ meet would also provide a platform for SAIL to showcase its future growth plans to participants.

He said the participants would get the opportunity to interact with the steel-giant’s top brass, including chairman V. S. Jain, to get a first-hand knowledge on different projects covering major aspects of steel-making.

The spokesman said the plan would be mainly funded through the company’s internal accruals as well as supplemented by market borrowings if there is a need.

He said care would be taken to ensure that the company’s debt-equity ratio is maintained at 1:1.

According to the plan, Bhilai Steel Plant’s hot-metal production would go up to seven million tonne (MT) by 2012 from the current 4.3 MT, while Bokaro Steel Plant’s hot-metal production would increase to 6.5 MT from 4.1 MT.

Similarly, hot-metal production in Durgapur Steel Plant would rise to 3.2 MT from 1.98 MT, while Rourkela Steel Plant would produce 3 MT as against the current level of 1.73 MT, the spokesman said.

In view of the emerging market requirements, SAIL has also planned to raise the output of finished steel to 16.6 million tonne by 2012 from the existing 8.6 MT and reduce generation of semi-finished steel from 20 per cent of saleable steel to 4 per cent.

To cater to the increasing requirement of raw materials, the company would develop new mines and rebuild coke-oven batteries.