Union Govt to Invest ₹35,000 Crore in Durgapur Steel Plant After 67 Years

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Sat, Jun 06, 04:27 PM IST • 2 min read

India to Invest ₹35,000 Crore in Durgapur Steel Plant After 67 Years, Major Boost for Bengal’s Industrial Growth

In a landmark development for West Bengal’s industrial sector, the Government of India is reportedly set to invest a massive ₹35,000 crore in the Durgapur Steel Plant (DSP), marking one of the biggest industrial investments in the state in decades. The move comes 67 years after the plant was first established and is expected to significantly strengthen Bengal’s heavy industrial ecosystem.

Located in Durgapur, the Durgapur Steel Plant was established in 1959 and has long served as one of eastern India’s most important industrial hubs. Operated by the Steel Authority of India Limited (SAIL), DSP holds strategic importance in India’s manufacturing landscape as the country’s only producer of forged railway wheels and axles, critical for the Indian Railways network.

According to reports, the proposed investment will involve a second major unit and extensive capacity augmentation as part of SAIL’s long-term expansion strategy. Under SAIL’s Vision 2030 roadmap, DSP’s crude steel production capacity is targeted to increase from the current 2.2 million tonnes per annum (MTPA) to 4.73 MTPA by 2030-31.

The expansion is expected to include large-scale modernization, advanced blast furnace infrastructure, captive power facilities and major logistics upgrades. Industry observers believe this could substantially enhance production efficiency while improving the plant’s competitiveness in the domestic steel sector.

The development comes at a time when West Bengal is witnessing renewed industrial momentum. Alongside the proposed ₹35,000 crore investment in Durgapur, the ₹45,000 crore expansion of the IISCO Steel Plant in Burnpur is also expected to significantly strengthen the state’s manufacturing capabilities.

Experts believe these large-scale investments could drive employment generation, boost ancillary industries and attract downstream manufacturing units across the region. The ripple effect may also benefit logistics, engineering, construction and MSME sectors connected to heavy industry.

For Bengal, this investment signals renewed confidence in its industrial potential and could pave the way for a stronger manufacturing-led growth story in the years ahead.