SAIL's Bold $800 Million Bet on Rail Demand

SAIL is investing $800 million in a new rail mill despite no orders from its biggest buyer, Indian Railways. Chairman Amarendu Prakash expresses confidence in government growth policies and has been negotiating with Railways for future demands for seven years.

SAIL, under the Ministry of Steel, is taking a significant step with an $800 million investment in a new rail mill, as revealed by Chairman Amarendu Prakash during the Global Business Summit held in the capital.

Despite no current indications of orders from its largest buyer, Indian Railways, the company has chosen to proceed, reflecting a strong belief in the government's pro-growth policies. Prakash emphasized the necessity of the rail mill, convinced that Indian Railways will eventually require their products.

For the last seven years, SAIL has been in constant discussions with Railways regarding future demand, aiming to effectively plan its rail production. The company produces rails at Bhilai Steel Plant and forged wheels at Durgapur Steel Plant.

(With inputs from agencies.)