(a) whether the Government have approved financial and business reorganisation package for SAIL;
(b) if so, the details thereof;
(c) whether an agreement has been entered into between the Government and SAIL in this regard; and
(d) if so, the details of the improvements likely to be effected in the functioning of SAIL thereafter?
MINISTER OF STATE FOR STEEL (SHRI BRAJA KISHORE TRIPATHY)
(a)&(b): In February, 2000, Government had approved the financial and business restructuring package for SAIL, which, inter alia, includes the following:
i) Financial restructuring of SAIL by waiving of loans advanced to it from Steel Development Fund (SDF) to a value of Rs.5073 crore and Rs.381 crore from Govt. of India.
ii) Provision of Govt. guarantees with 50% interest subsidy for loan and interest thereon of Rs.1500 crore to be raised by SAIL from the market to finance reduction in manpower through Voluntary Retirement Scheme.
iii) Provision of Govt. guarantee for loan and interest thereon of Rs.1500 crore to be raised by SAIL from the market primarily for meeting repayment obligation on past loans during 1999-2000.
iv) To initiate the process of divestment of following non-core assets while protecting jobs of existing employees :
a) Power Plants at Bokaro, Durgapur and Rourkela
- 2x60 MW Captive power plant - II at Rourkela Steel Plant and the Central Power Training Institute at Rourkela - 2x50 MW Captive power plant - II at Durgapur Steel Plant - 122 MW (2x55 MW + 12 MW back pressure turbine) Captive Power Plant - I, 3x60 MW Captive Power Plant - II and steam generating capacity of 660 MT/hour at Bokaro Steel Plant
b) Oxygen Plant - II of Bhilai Steel Plant c) Salem Steel Plant (SSP), Salem d) Alloy Steels Plant (ASP), Durgapur e) Visvesvaraya Iron & Steel Plant (VISL), Bhadravati f) Fertilizer Plant at Rourkela
Targets against 2000-01 2001-02 2002-03 2003-04
Production (`000 tonnes) 9943 10263 10603 10753 Sales Quantity (`000 tonnes) 9874 10132 10445 10633 Sales Turnover (Rs.Crore) 18584 18624 20153 21541 Gross Margin (Rs.Crore) 2510 2711 3706 4231 Net Profit after Tax (Rs.Crore) - 700 - 139 810 1376