Steel Authority of India Ltd. said its workforce could shrink by nearly 3,500 employees every year over the next two years even as the state-run steelmaker pushes for higher production and output from existing plants.
The company said employee numbers fell to 49,752 as of April 1, 2026, from 53,159 a year earlier. Chairman and Managing Director Ashok Kumar Panda said similar reductions are expected in FY27 and FY28, although SAIL will continue hiring at lower levels for expansion and operational requirements.
“And as we look at – I mean, similar numbers will be reduced also in ’26-’27 and ’27-’28 means around 3,400 to 3500 numbers will be reduced in each of the years,” Panda said during the company’s post-earnings conference call on Saturday.
The comments underscore a wider shift underway across older public-sector companies, where production targets are rising even as workforce numbers decline through retirements, voluntary retirement schemes and operational changes. SAIL has also launched a voluntary retirement scheme aimed at reducing employee numbers by another 500 to 1,000, Panda said.
Output Push
The company is targeting crude steel production of about 22.5 million tonnes in FY27 against an installed capacity of around 21 million tonnes, according to the management.
Panda said SAIL plans to increase output through operational improvements and by pushing plants beyond their rated capacities. “In steel making and iron making actually, theoretical calculations do not hold good,” Panda said. “By giving better enablers and raw materials, the BF productivity levels go much beyond their DPR capacities.”
The company said it has shut smaller furnaces and increased production from larger units to improve efficiency. SAIL expects sales volume to rise to around 22 million tonnes in FY27 from nearly 20 million tonnes in FY26.
Expansion Plan
The steelmaker plans capital expenditure of about Rs 15,000 crore in FY27, up from around Rs 9,100 crore in FY26, as it expands plants at IISCO, Bokaro and Bhilai.
Panda said annual capital expenditure could rise further to Rs 20,000 crore-Rs 25,000 crore over the following years as expansion projects gather pace. The company said it will continue focusing on operational efficiency, cost reduction and higher capacity utilisation while managing future borrowing requirements.
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