New Delhi: State-owned steel major Steel Authority of India Limited (SAIL) has signed a strategic long-term agreement with GAIL (India) Limited for the supply of natural gas, marking a significant step towards cleaner and more sustainable steelmaking in the country.
The agreement will come into effect from November 2027 and will remain valid for a period of five years. The partnership is aimed at supporting SAIL’s expansion plans, particularly at its Burnpur plant, while ensuring a reliable and environmentally friendly energy supply.
Supporting Expansion at Burnpur Plant
Under the agreement, GAIL will supply natural gas to SAIL to meet the growing energy requirements arising from capacity expansion and modernization initiatives at the Burnpur Steel Plant in West Bengal.
The availability of long-term natural gas supplies will help SAIL enhance operational efficiency, improve process reliability, and support the commissioning of new facilities planned under its expansion roadmap.
Focus on Cleaner and Sustainable Steel Production
The use of natural gas is expected to significantly reduce carbon emissions compared to conventional fossil fuels. The agreement aligns with SAIL’s broader strategy to transition towards low-carbon and environmentally sustainable steel production, in line with India’s climate commitments and green manufacturing goals.
Natural gas will play a crucial role in improving energy efficiency, lowering emissions intensity, and enabling cleaner steelmaking processes across SAIL’s operations.
Strengthening Energy Security Through Strategic Partnership
The long-term nature of the agreement ensures energy security for SAIL while providing GAIL with a stable demand base. The partnership reflects growing collaboration between public sector enterprises to strengthen domestic industrial capabilities and promote sustainable growth.
Both companies view the agreement as a mutually beneficial arrangement that supports national objectives of industrial expansion, energy transition, and reduced environmental impact.
About SAIL
Steel Authority of India Limited (SAIL) is one of India’s largest steel producers and a Maharatna Central Public Sector Enterprise. It operates integrated steel plants and special steel units across the country, playing a key role in infrastructure development, manufacturing, and nation-building.
About GAIL
GAIL (India) Limited is a Maharatna PSU and the country’s leading natural gas transmission and marketing company. It plays a vital role in developing India’s gas-based economy through pipeline infrastructure, gas sourcing, and clean energy solutions.
