Shareholders approve provision of "Buyback of shares": at AGM
"SAIL has taken various initiatives in optimizing operations, better value addition in downstream units, reducing coke consumption by enhancing alternate fuels like Coal Dust Injection in blast furnaces etc", said Mr C.S. Verma, Chairman of Maharatna Steel Authority of India Limited (SAIL), at the company's 40th Annual General Meeting held here today. Notwithstanding the short term dampeners in the Indian and the world economy, he expressed confidence in the growth of the indian steel industry driven by the increased infrastructure investment and higher pace of urbanisation. "In terms of per capita consumption of finished steel, India at 57 kg lags behind the world average of 214.7 kg, indicating a huge potential for growth", he said.
SAIL has planned a capex of Rs 12,000 crore for FY '13 after incurring a capital expenditure of Rs 11,021 crore in FY'12. Apprising shareholders on the status of modernisation & expansion, Mr Verma informed that the completed new facilities include new Coke Oven Battery No.11 and Wire Rod Mill at IISCO Steel Plant, Sinter Plant No.3 & Coke Oven Battery No.6 at Rourkela Steel Plant and 700 tpd Air Separation Unit at Oxygen Plant-2 at Bhilai Steel Plant. SAIL's modernisation and expansion program being implemented at an expenditure of around Rs. 72,000 crores, besides targeting higher production, also addresses the need for eliminating technological obsolescence, achieving energy savings, enriching product-mix, reducing pollution and developing mines & collieries. Further, interacting with the shareholders Mr Verma informed that the majority of the facilities of the on-going phase of modernisation & expansion of SAIL are likely to be completed in the current fiscal.
In the area of enhancing power capacity from present 1000 MW to nearly 1800 MW, NSPCL (a 50:50 JV of SAIL and NTPC) is preparing a Feasibility Report for setting up 2x250 MW Power Plant at Bhilai and 1x250 MW Power Plant at Rourkela.
In the AGM, a special resolution was passed wherein SAIL was authorised to purchase, acquire or hold its own shares or other specified securities as per the applicable statutes. Payment of 20% of total dividend for the year FY'12 was also approved in the meet.
To maintain its current dominance in the domestic market and to meet future challenges, Mr Verma stated that "SAIL is working on a long term strategic plan 'Vision 2020' which will steer the company towards meeting its strategic objectives of achieving higher profitability through organic and inorganic growth and infusion of state of the art environmental friendly technologies" Mr Verma apprised SAIL shareholders that the company is determined to meet its enhanced requirement of iron ore from captive sources, by augmenting production from existing mines and by developing new mines at Rowghat in Chhattisgarh and Chiria in Jharkhand.
Besides achieving a record sales turnover of Rs 50,348 crore during 2011-12, a growth of 7% over previous year, SAIL also achieved production of hot metal, crude steel and saleable steel at 14.1, 13.4 and 12.4 million tonnes respectively, registering a corresponding capacity utilisation of 102%, 104% and 112%. Keeping up this trend, cumulative production of crude steel at SAIL was 5.65 million tonnes in April-August'12, up by 3 % over CPLY.
Speaking about the company's efforts towards integrating R&D with its business and operational goals, Chairman SAIL stated that the R&D spend would be increased to the international benchmark of 1% of the sales turnover. Already, implementation of several initiatives under SAIL's R&D Master Plan has been started.
Mr Verma expressed satisfaction over the best ever achievements made during 2011-12 in respect of reduction in Particulate Matter emission load from 2.3 kg/tcs in 2006-07 to 1.01 kg/tcs in the year 2011-12; Specific Water Consumption from 4.58 m3/tcs in 2006-07 to 3.86 m3/tcs in the year 2011-12 and Specific effluent discharge from SAIL Plants from 2.73 m3/tfs in 2006-07 to 2.26 m3/tfs in the year 2011-12. In fact, over the last 5 years, SAIL has witnessed reduction in particulate matter emission, specific water consumption and specific effluent discharge by an impressive 56%, 16% and 17% respectively. For the same period, SAIL also achieved an improvement of 18% in solid waste utilization.
SAIL Chairman Mr C.S. Verma addressing shareholders at the company's AGM in New Delhi.
