Steel Minister Reviews Performance of SAIL

The Union Minister for Steel Shri Beni Prasad Verma has reviewed the performance of Maharatna Steel Authority of India Ltd (SAIL) during Q1 (April-June) of FY ’12 here today. Shri Verma appreciated the efforts of the company to complete the first phase of its ongoing modernization & expansion (M&E) programme on schedule by 2012-13. During Q1 of the current financial year, making a record quarterly capital expenditure of Rs. 2,006 crore, SAIL achieved several milestones of its M&E plan. All major facilities under the expansion plan of Salem Steel Plant which were completed on schedule in Sept. ’10 were under stabilisation for regular production. Among other major production facilities commissioned during Q1 were Coke Oven Battery No. 6 at Bhilai Steel Plant (BSP), and Coke Oven Battery No. 1 at Bokaro Steel Plant.

Highlights of SAIL’s performance in Q1 of 2011-12 included:

• Highest-ever crude steel production through concast route achieved at 2.35 million tonnes, showing growth of 5% over corresponding period last year (CPLY).

• Higher production was recorded in items such as HR plates (12%), ERW pipes (14%), CR coils/sheets (9%), medium structurals (7%), HR coils (6%), rails (2%), etc.

• Turnover of Rs. 12,167 crore showed 20% increase over CPLY.

• Total sales of 2.7 million tonnes (MT) were 18% higher than CPLY.

• Sales growth in value-added items such as wire rods (65%), galvanized products (43%), HR coils (30.6%), pipes (28.5%), railway materials (10%), etc.

• Growth of 21% in sales through company's countrywide dealer network. Branded products such as SAIL-JYOTI and SAIL-TMT witnessed sales growth of 57% and 9.5%, respectively, through this distribution channel. 51 new dealers were added.

• Highest-ever net worth of Rs. 37,908 crore was achieved, reflecting increase of Rs. 3,415 crore over CPLY.

• MoU signed with MIDHANI to meet requirements of Defence & other strategic sectors.

The CMD of SAIL, Shri C.S.Verma thanked the Minister for the support and timely interventions and guidance which helped the company for obtaining security of raw material supplies. Stage-I forestry clearance & environment clearance by the Ministry of Environment & Forests (MoEF) for Ajitaburu, Budhaburu leases of Chiria iron ore mines and Barsua-Kalta-Taldih mines has assured the company secured iron ore supplies for its steel plants. The company has also given a major thrust on securing assured coal supplies from countries in which resources are available, mainly through the govt.-to-govt. initiatives of ICVL (International Coal Ventures Ltd, of which SAIL is a member along with NTPC, Coal India, NMDC & RINL), besides taking steps for increasing production from its captive collieries.

The Minister was informed that more than 59% of the recipients of the prestigious Prime Minister’s Shram Award in the country this year were from SAIL. The company was also recently awarded the Golden Peacock Environmental Management Award 2011 by Institute of Directors. ‘Randstand Award – 2011’ in ‘Manufacturing Industries’ category as most attractive employer award.

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NSK/DB