SAIL jumps 6% on plans of Rs 7,500 crore modernisation push

Shares of steel major SAIL today rose by nearly 6% intraday after the company said it will press ahead with its modernisation programme and augment capacity in the current fiscal. The stock gained 5.69% to Rs 49.15 on the BSE. On NSE, it jumped 5.69% to Rs 49.20.

SAIL said Wednesday that it will spend Rs 7,500 crore on modernisation and expansion programme in the current fiscal ending March 2016. 

The public sector undertaking (PSU) also said it will seek shareholders nod to raise Rs 5,000 crore through securities to part finance the plans. 

So far, the 'Maharatna' company has invested over Rs 58,000 crore in its Rs 70,000 crore modernisation and expansion plan, which will augment the crude steel production
capacity at its five steel plants to 23 million tonnes per annum (MTPA). 

The company has taken up the massive programme of its plants as also for augmenting raw material supplies from its mines. The expansion programme has been decided to be funded
through a mix of debt and equity, SAIL had said in a regulatory filing on Wednesday.