When less than a month is remaining in next financial year to begin Steel Authority of India limited (SAIl) has put 17 MT hot metal production target for 2014-15. The target would score a jump anywhere between 12 to 14 per cent over the present production figure, i.e. 14 MT in a year which is steel major of the country is set to achieve.
Addressing media persons on Thursday after business plan meeting SAIl Chairman CS Verma expressed satisfaction over performance of the Maharatna company despite global slump. “We are in the last leg of this financial year which shows 5.1 per cent growth in steel production in the country. The figure was 5.2 per cent during 2012. It is marginally low but still higher than global growth of 3.5 per cent,” he said.
Verma though stopped short from disclosing achievements during 2012-13 but said the performance would touch top level. “Few days are remaining for this FY to complete but I can tell you that as per our MoU with the Government, which has five different levels of targets, the SAIl would achieve ‘excellent level of target’.”
Talking about hot metal production by the SAIl during 2014-15, the Chairman said that it was likely to remain around 17 MT or 12-14 per cent more than this year’s figure. “We are investing a lot and expected to be 12 to 14 per cent up. In the last 12 years the company has invested Rs 72,000 crore on modernisation of its steel plants which has to be increased to achieve 2025 India Steel Vision. The Vision sets 50 MT production target of hot metal,” added Verma.
The company under the Vision would pump in Rs 1.5 lakh crore for modernisation and 50 per cent of it would be met by its own internal resources. Government has set 300 MT target as per its 2025 vision from the present 90 MT and it would require around US $ 200 billion investment.
Verma also presented insight of the plants under SAIl. Almost all orders for modernisation have been placed costing Rs 52,250 crore and majority of the expansion units are in the final stage of commissioning. At Rourkela, largest blast furnace of capacity 4060 meter cube has been commissioned besides sinter plant and coke oven battery. Converter at IISCO, Burnpur is at its advanced stage while at Bhilai Sinter plant and Coke Oven Battery to start production soon.
Coming to steel use nationally Verma said that per capita consumption of steel is low in the country which is just 59 kg 2012-13 against 225 kg of world average. Besides production country has imported 5 MT of steel last year which is 31 per cent lower than 7.3 MT during preceding year.
“lots of scope is there in domestic market as still a large part of country in villages is away from steel use. Steel to cement ratio is just 0.3 per cent in India while in the USA it is 1.19,” said the SAIl Chairman. He also mentioned that there was sufficient iron ore reserve with the company which would facilitate the growth projections.