SAIL To Raise Capacity To 26 Mt (11-Mar-2010)
Steel Authority of India Ltd. (SAIL) stated that it would raise its annual production capacity in a phased manner.
This will take it to 26 million tonnes by 2014
Meanwhile, currently, the company produces about 13.82 million tonnes of hot metal every year.
SAIL General Manager (Materials Management) R. N. Rawat stated that in the first phase of expansion, by the end of 2012, it will be taken up to 23.46 million tonnes.
In the second phase it will be increased further to 26.18 million tonnes by 2014.
Moreover, the second phase of expansion programme is expectd to cost the company about Rs. 10,000 crore.
SAIL is currently undertaking a Rs. 70,000-crore expansion programme in order to raise its capacity to about 23 million tonnes by 2012.
On the other hand, the PSU had envisaged doubling its capacity to 26 million tonnes by 2012 earlier.
But, however, due to global economic slowdown, it later revised the target downwards to 23 million tonnes.
Earlier, it was said that the Steel Authority of India Limited (SAIL) proposes to have its present crude steel capacity of 13 MT increased to 60 MT in 2020 through Brownfield and Greenfield expansion.
SAIL is currently undertaking Brownfield expansion from present crude steel capacity of 13 MT to 23.7 MT in 2012.
Previously, the Steel Authority of India Ltd stated that steel prices should stabilize at current levels after hikes in recent months.
Steel Authority of India Ltd''s (Sail) Chairman and MD S K Roongta stated that prices have been increased and they don''t see any further rise in steel prices.
Moreover, Steel Secretary Atul Chaturvedi stated that a 20% share sale proposal in SAIL will be taken to the Cabinet by mid-January 2010.
The 20% share sale proposal of SAIL will be moved to the Cabinet in next 3-4 weeks while the draft proposal that has been approved by the Steel Ministry and has been sent to different ministries for comments.
However, earlier, SAIL decided to slash the rates by about Rs 500 a tonne due to the decline in global demand while it has already cut prices of some of its products by up to Rs 1,500 a tonne.
It usually revises the rates of its products every month and preciously it had cut prices of its flat steel products used by automobile and white goods industries, by Rs 750-1,500 a tonne.
It is now expected to review the prices downwards and has not changed the price structure of the long steel products, consumed by construction and infrastructure companies.
Meanwhile, in order to eliminate technological obsolescence, SAIL embarked on a massive modernization and expansion plan for its steel plants and mines where out of the Rs. 70,000- crore expansion plan, Rs. 3,500 crore will be for installation of different pollution control schemes.
On the other hand, the steel ministry has put the disinvestment process of SAIL on the fast track by seeking Cabinet approval for sale of 20% share in the state-owned steel maker by mid-January next year.
The draft proposal, after being approved by the steel ministry, has now been sent to different ministries for comments while it is said that the public offer may be launched at the opportune time.
Regarding the financial performance, for quarter ended December 2009, the company reported rise of 10.74% in its net sales to Rs 9878.68 crores as compared to Rs 8920.63 crores of corresponding period of previous year. Further, net profit of the company rose 102.40% to Rs. 1675.55 crores for quarter ended December 2009.
Steel Authority of India Limited (SAIL) is one of the largest steel makers in India. With a turnover of Rs. 45,555 crore, the company is among the top five highest profit earning corporates of the country. It is a public sector undertaking wholly owned by Government of India and acts like an operating company. Incorporated on January 24, 1973, SAIL has more than 131,910 employees.
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