Steel Authority of India Ltd’s (SAIL) finances may come under pressure due to cost overruns of whopping Rs 6,000 crore in its expansion and modernisation (E&M) programmes even as the PSU is struggling to complete it by 2010.

“SAIL’s E&M costs have shot up to nearly Rs 54,000 crore from the envisaged Rs 49,000 crore. Besides, it is unlikely to complete its modernisation programmes in time (by 2010),” a source told PTI. The source said the costs have shot up because MECON, which had made recommendations for SAIL’s Corporate Plan-2012, had not firmed up the costs nor had it factored in different aspects before submitting its suggestions.

This assumes importance as SAIL Chairman S K Roongta said, “We are looking at different scenarios, but I have a suspicion that our debt costs may rise.”