Steel Authority of India Limited (SAIL) has signed a ₹854.57 crore contract with Chennai-based engineering company SEPC Limited for the development of pellet plant infrastructure at its IISCO Steel Plant in Burnpur, West Bengal. The project forms part of SAIL’s major industrial expansion programme aimed at strengthening domestic steel production capacity.
The agreement, formally signed on 8 October 2026, covers the balance-of-plant infrastructure, including civil and structural works, under Pellet Plant Package-2. The project supports SAIL-IISCO’s expansion to 4.08 million tonnes per annum (MTPA) of crude steel capacity.
The contract follows a Letter of Acceptance issued by SAIL on 4 August 2026 and represents another significant investment in India’s public sector steel manufacturing infrastructure.
₹854.57 Crore Contract for Pellet Plant Infrastructure
The contract was signed at SAIL’s IISCO Steel Plant in Burnpur by Praveen Kumar, Executive Director (Projects), SAIL-ISP, and Venkataramani Jaiganesh, Managing Director, SEPC Limited, in the presence of senior company officials.
The agreement covers the engineering, construction and associated infrastructure required for the pellet plant’s balance-of-plant facilities. These include civil and structural works essential for integrating the pellet plant with the wider steel manufacturing complex.
According to SEPC’s regulatory disclosure, the gross contract value is ₹951.60 crore. After accounting for ₹97.04 crore in input tax credit to be passed on to SAIL, the net contract value stands at ₹854.57 crore.
The project will be executed on a divisible turnkey basis, with the facilities scheduled for commissioning within 32 months from the contract’s effective date of 3 September 2026.
Supporting SAIL’s 4.08 MTPA Steel Expansion at Burnpur
The pellet plant infrastructure package forms part of the broader expansion of SAIL’s IISCO Steel Plant, an important integrated steel manufacturing facility in West Bengal.
The expansion programme aims to strengthen the plant’s crude steel production capabilities through the development of additional industrial infrastructure and associated processing facilities.
Pellet plants play an important role in integrated steelmaking by converting fine iron ore into pellets suitable for use in ironmaking processes.
This process enables steel producers to utilise iron ore fines more effectively while providing a consistent raw material feed for downstream operations.
Modern pelletisation facilities can also support improved raw material handling, process efficiency and operational reliability within integrated steel plants.
The investment will strengthen the infrastructure required to support SAIL’s expanding steel production activities at Burnpur.
SEPC to Execute Civil, Structural and Balance-of-Plant Works
SEPC Limited will undertake the balance-of-plant package associated with the pellet plant, including the civil and structural infrastructure required for the project.
The company specialises in engineering, procurement and construction services across industrial infrastructure, process plants, mining, water management and other sectors.
The Burnpur project involves complex industrial construction activities that must be coordinated with the development of the larger steel manufacturing complex.
M. N. Dastur & Company has been appointed as the Engineering and Construction Management Consultant, while public sector engineering consultancy MECON Limited will provide procurement and contract engineering services.
The involvement of these organisations brings together expertise in industrial engineering, project management and steel plant infrastructure development.
SEPC Order Book Crosses ₹10,000 Crore
Following the signing of the SAIL contract, SEPC announced that its consolidated order book had crossed ₹10,000 crore, strengthening its portfolio of industrial infrastructure projects.
The company reported total income of ₹1,085.8 crore during FY 2025–26, making its order book more than nine times its annual income.
SEPC Managing Director Venkataramani Jaiganesh described the agreement as an important milestone in the company’s industrial project portfolio.
He emphasised the company’s commitment to executing the Burnpur project within the stipulated timeline while maintaining quality and safety standards.
The contract also reflects the growing participation of Indian engineering companies in large-scale public sector industrial expansion projects.
Strengthening India’s Domestic Steel Manufacturing
SAIL’s investment in modernising and expanding its steel manufacturing infrastructure aligns with India’s broader objective of increasing domestic steel production capabilities.
Steel remains a critical material for infrastructure, railway networks, automobiles, defence manufacturing, construction equipment and industrial machinery.
Expansion of integrated steel plants requires corresponding investments in raw material processing, material handling systems and supporting industrial infrastructure.
The Burnpur project contributes to this development by strengthening the facilities needed for efficient iron ore processing and steel production.
The participation of domestic engineering companies and specialised industrial consultants also supports India’s engineering and heavy manufacturing ecosystem.
SAIL’s Burnpur Expansion Supports Make in India
The ₹854.57 crore pellet plant infrastructure contract represents another step in SAIL’s ongoing programme to strengthen its manufacturing assets and improve production capabilities.
The project combines public sector investment with the expertise of Indian engineering and construction companies, creating opportunities for industrial development and associated supply chains.
With a defined 32-month execution schedule, the project forms an important component of the wider IISCO Steel Plant expansion.
SAIL’s continued investment in modern steelmaking infrastructure strengthens India’s domestic industrial capabilities and supports the development of a more competitive, technologically advanced and self-reliant steel sector.
References
- SEPC Limited — Official Stock Exchange Disclosure, 5 August 2026. Letter of Acceptance from SAIL–IISCO Steel Plant for Pellet Plant Balance-of-Plant Works Worth ₹854.57 Crore. Includes the original Letter of Acceptance issued by SAIL on 4 August 2026.
https://nsearchives.nseindia.com/corporate/SHRIRAMEPC_05082026122532_INTIMATION_TO_SE_ABOUT_LOA_FROM_SAIL_DTD_04082026_ALONGWITHLOA.pdf - SEPC Limited — Regulatory Filing and Company Press Release, 9 October 2026. SEPC Limited MD Signs ₹854.57 Crore Contract with SAIL-IISCO Steel Plant at Contract Signing Ceremony in Burnpur; Consolidated Order Book Crosses ₹10,000 Crore.
Original BSE Filing - Steel Authority of India Limited (SAIL) — Official corporate and project information.
https://www.sail.co.in/ - IISCO Steel Plant, Burnpur — SAIL’s official information on its integrated steel manufacturing operations.
https://www.sail.co.in/en/plants/about-iisco-steel-plant
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