Elaborating on the challenges ahead the Honourable Minister said, "You have to ensure that the modernisation programme is completed without any time and cost over runs. The steel environment has become fully globalised and intensely competitive and unless SAIL plants internalize these realities and step up their productivity they will be left behind."
Commenting on Corporate Social Responsibility - a subject close to his heart - the Minister said, "I am pleased to note that RSP has adopted 16 villages in the vicinity as model steel villages, in addition to providing other services in areas like education and health care. As suggested by the Chief Minister we will be setting up ITIs."
Expressing his immense happiness at the tremendous dedication and enthusiasm of the RSP collective which had resulted in the remarkable turnournd of the steel plant the Honourable Minister announced a special reward of Rs. 2000 for the employees of RSP.
It is significant that the modernisation and expansion of RSP, which was the first steel plant in the public sector in the country, will not only increase its production and productivity but will also improve the quality of products, increase the production of value added steel, reduce the energy consumption, take care of the environment and cut down the cost of production. The plan envisages capacity increase to more than double from the existing 2 million tonnes of hot metal to 4.5 million tonnes. The modernisation package will help to establish RSP as an important player in the dynamic steel scenario, besides contributing to progress and prosperity in the region.
Orissa Chief Minister Mr. Naveen Patnaik expressed his happiness over the way RSP the biggest industry of Orissa has contributed in the development and progress of the state as well as improving the socio-economic condition of the people of Orissa. He expressed the hope that the steel plant after the massive modernisation will continue to contribute to the well being of the state and its people and at the same time will be a pioneer in the steel industry.
Mr. R.S. Pandey, Secretary (Steel), Govt. of India, informed the gathering that an MoU has been signed between SAIL, RINL, CIL, NTPC and NMDC to jointly promote a Special Purpose Vehicle for acquisition of coal mines/properties. "Consumption of steel is outsripping production, making India a steel importing country and with the implementation of the Steel Policy initiatives the country is expected to become a steel exporting country."
Mr. S.K. Roongta, Chairman, SAIL, in his address said: "RSP which is known for its versatile products has shown a commendable performance. Now the steel plant has a big challenge of implementing its modernisation and expansion plan by 2010 which includes installation of a new sinter plant, new blast furnace of higher volume of 4060 cubic meters new plate mill and new CRNO mill."
Mr. Jual Oram, MP, Sundargarh, and Mr. R.C.Paswan, MP, Rozera, Bihar, also spoke on the occasion and express the hope that the modernisation and expansion would usher in a new era of progress and prosperity.
Mr. B.N.Singh, RSP Managing Director, while proposing a vote of thanks expressed his gratitude to the Honourable Minister and Honourable Chief Minister for gracing the occasion and inspiring the Rourkelites. Outlining the SAIL's vision for RSP he said," RSP is already on the track for achieving 4.5 million tonnes and would move to achieving 8.5 million tonne capacity in the next phase."
Earlier, in an informal interaction with the members of the media, Mr. Paswan said, "RSP was incurring losses continuously for about ten years till 2003-04. I am happy to announce that today it is a high profit making company. During the tenure of the UPA government in the last three years it has made a profit of Rs. 3,500 crore. I wish to thank the RSP collective and Government of Orissa for providing support and making this achievement possible."
Commenting on the future of the steel industry in general and SAIL in particular the Honourable Minister said, " The Government is planning to invest Rs. 3.5 lakh crore in the steel industry by 2014-15 and Rs. 8 lakh crore by 2020, making India the second largest producer in the world. The expansion plans of SAIL to the tune of around Rs. 50,000 crore would increase the capacity of SAIL from 14.6 million tonnes per annum of hot metal production to 26 million tonnes by 2010. I am also hopeful that the Jharkhand Government would take steps to expedite the handing over of the Chiria mines to SAIL."
In response to a query the Hon'ble Minister said he had asked all the steel plants under SAIL to invest 2% of the profit on Corporate Social Responsibility activities clearly underscoring the immense importance he pays to CSR initiatives. Answering a question on how he assessed the performance of SAIL Honourable Minister said, "SAIL is one of the best organisations in the country and its performance is even better than the companies in the private sector."
Steel Minister inaugurates Rourkela Steel Plant's Modernisation Expansion Plan
Shri Ram Vilas Paswan, Union Minister For Chemicals & Fertilisers And Steel, addressing the gathering on the occassion of foundation stone laying ceremony for Modernisation & Expansion of Rourkela Steel Plant today (4th Jan. 2007).
Steel Minister inaugurates Rourkela Steel Plant's Modernisation Expansion Plan
Mr. Ram Vilas Paswan along with Mr. Naveen Patnaik, Mr. R.S. Pandey, Mr. S.K. Roongta and other dignitaries after unveiling the plaque to commemorate the inauguration of Rourkela Steel Plant's expansion & modernisation programme today.