Steel Authority of India Ltd is making plans to invest around $12 billion to establish four steel facilities abroad.

On the sidelines of a steel conference organized by the Indian Chambers of Commerce, Mr. C. S. Verma, SAIL Chairman, stated, "We will invest about $12 billion to set up four overseas units. Each of these units will have a capacity of 3 million tones."

India's biggest public sector steel maker will finance these projects with 70-80% debt and the remaining through equity.

The steel major will also try to appoint strategic investors for these foreign projects.

The facilities are expected to be situated in Mongolia, South Africa, Oman and Indonesia, where the company is making discussions already.

SAIL is in talks with the Mongolian administration to secure raw materials for the planned steel facility there.

In Oman, SAIL is making discussions with the administration to establish a gas-based steel facility with a total investment of $3 billion.

"We will source coking coal for the plants from those countries and will export the surplus to India," Mr Verma said.

Mr. Verma satted that establishing these facilities will take around 3 years from the time SAIL inks an opening contract with the administrations.

SAIL's disinvestment proposals include the company issuing 10% fresh equity in two portions that would witness the company lift up Rs 8,000 crore.