SAIl is working on a long term strategic plan Vision 2025, which will steer it towards a target of 50 million tonnes per annum (MTPA) capacity, in line with the Prime Minister’s call for production of 300 mtpa by 2025, a press statement of SAIl’s largest unit- Bhilai Steel Plant- claimed on Sunday.
“This will not only enhance SAIl’s contribution to nation building but will put SAIl amongst the top steel companies globally. It already has the land bank and the other necessary infrastructure for expanding its capacity to this level,” claimed the release quoting Chairman of Steel Authority of India limited (SAIl).
“SAIl is likely to operationalize projects worth more than Rs 15,000 crore during the balance part of the current financial year increasing the hot metal production capacity by around 5.0 MTPA during the fiscal,’’ the release stated.
SAIl’s performance in the current fiscal year has bucked global trends. The company registered a 16 percent hike in sales in the month of August 2013 by selling 10.86 lakh tonnes of steel products as compared to 9.38 lakh tonnes in corresponding period last year (CPlY).
For the five month duration of April-August ’13, the cumulative steel sales stood at 47.8 lakh tonnes, a growth of 7 percent over CPlY. Early this month, SAIl launched a cost optimization drive aiming to achieve savings to the tune of Rs 5000 crore during the next three years. Thrust areas identified for cost reduction include input optimization, improving operational efficiency, quick stabilization of newly commissioned units and reducing overhead costs.
On the operational front, notwithstanding the challenging market conditions in the current fiscal arising from almost flat demand, SAIl operated at 104 percent of its capacity during April-August 2013.