The Hindu : SAIL salable steel output touches 10 m tonnes

Online edition of India's National Newspaper
Wednesday, Apr 02, 2003

Business

Business

SAIL salable steel output touches 10 m tonnes

By Our Staff Correspondent

KOLKATA. APRIL 1. The Steel Authority of India Ltd. has reduced its mounting debt burden, a direct fallout of the modernisation programme carried out since the late 1980s to mid-1990s, by a sizable Rs. 700 crores to Rs. 13,300 crores during 2002-03. The repayment of high cost debts had resulted a Rs. 300 crore reduction in the company's interest payout for the year.

According to a company release issued here today, but for interest cost, a sum of Rs. 400 crores is saved mainly in terms of energy consumption by way of improved techno-economic efficiency. While the coke rate was down by 4 per cent to 537 kg a tonne of hot metal, the overall energy consumption came down by 3 per cent to the lowest ever 7.5 giga calorie a tonne of crude steel. Blast furnace productivity increased by 2 per cent to 1.5 tonne per cubic metre a day. Several rounds of voluntary retirement schemes over the last couple of years along with the natural separation had brought the manpower down by 40,000 from the 1998 level to 1.38 lakhs. Despite a lukewarm response to the latest round of VRS closed in March manpower was reduced by a significant 10,000 in 2002-03 thereby putting a check on the wage cost.

The last fiscal has also seen the company touching the 10 million tonne salable steel production that helped reduce the production cost per tonne. The cost would have been reduced further if SAIL were to had a larger share of continuous casting production facility. Despite all efforts the continuous casting route contributed 59 per cent of the total crude steel produced during the year.

The biggest support, however, came from the sales front. The rise in demand in domestic and overseas markets, especially during the second half, boosted sales.

Exports, the weak link of the previous fiscal, increased manifold to 8.5 lakh tonnes. HR coil, GP coils, wire rods and billets were the main export items. This apart TMT bars and plates were exported in substantial quantities. Bulk of the exports took place during the second half. In fact during December-February alone SAIL registered an export turnover of Rs. 400 crores.

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