With its highly skilled and committed workforce, largely captive raw materials, nationwide marketing network and available infrastructure to support further expansions, Steel Authority of India Ltd (SAIL) is today well poised to play a vital role in the growth phase of the country. This was stated by SAIL Chairman Mr. S.K. Roongta at the company's 35th Annual General Meeting held at Subroto Park here today. The company's "strong financial performance" in 2006-07 and during the first quarter of the current financial year "has contributed to enhanced cash generation and further reduction in debt-equity ratio" which "would provide a strong financial base" to support the modernisation and expansion programmes being undertaken by SAIL, he observed.
"To contribute to the growth of the Indian steel sector and maintain its leadership position in the domestic steel market, your company has prepared a roadmap for enhancing its annual hot metal production to over 26 MT through modernisation and expansion programmes being undertaken in all of its five integrated steel plants. The project completion schedules are also being compressed to the year 2010, against 2011-12 planned earlier," he told the company's shareholders attending the meet. The implementation of modernisation and expansion schemes would help in eliminating technological obsolescence, enriching product-mix with share of finished steel increasing to almost 100% and introduction of customer-centric processes, apart from upgrading infrastructural facilities in the plants to support higher volumes, he informed. Along with additional new facilities, existing facilities are also being upgraded to enable higher production of value added steel with overall improvement in productivity.
An IISI study has projected the demand for steel in India to reach 160 to 180 million tonnes by 2020, said the SAIL Chairman. For sustaining its "market dominance in the long-term", SAIL is "simultaneously working on a blueprint for growth beyond 2010", he informed.
Dwelling at length upon the measures being taken in this regard, Mr. Roongta stated that SAIL's raw material and power supply bases along with its district dealer network were being strengthened, and strategic alliances/joint ventures were being established with domestic and international companies for setting up greenfield steel plants, comprehensive business resource sharing, cement plants in Bhilai, Bokaro and Rourkela for utilisation of solid waste and value addition, steel-related SEZ, etc. "To meet the growing needs of iron ore, apart from expanding existing mines at Bolani and Gua, new mines are being developed. Forest and environment clearances of the Rowghat iron ore deposit have been recommended by the State Government and are in an advanced stage for approval by the Central Government. As regards coking coal, actions have been taken for development of Sitanala as well as Tasra coal blocks. Besides, your company along with other major PSUs is seeking to obtain equity in international coal blocks as a long-term security measure. The production from existing captive coal mines of the company is also being stepped up. To augment availability of ferro-alloys, an MoU has been signed with Manganese Ore India Limited for setting up a joint venture unit at Bhilai," he stated.
SAIL is also "actively associating itself with the Kyoto Protocol and Asia Pacific Partnership for Clean Climate Development Programme under the Clean Development Mechanism," said Mr. Roongta, adding that actions were being taken to implement EMS ISO:14001 in all the units of the company. The SAIL Chairman also informed the shareholders that Rs. 100 crore had been earmarked by the company for activities related to corporate social responsibility during 2007-08.