Financial Daily from THE HINDU group of publications
Saturday, Jun 18, 2005
Financial Daily from THE HINDU group of publications Saturday, Jun 18, 2005 |
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Corporate
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Outlook Industry & Economy - Steel SAIL draws up Rs 400-cr investment plans for DSP Our Bureau
Kolkata , June 17 STEEL Authority of India Ltd (SAIL) has lined up approximately Rs 400 crore worth of investments for Durgapur Steel Plant (DSP) for 2005-06. This is part of the Rs 2,800-crore modernisation plan chalked out by SAIL for DSP in its Corporate Plan 2011-12. By the end of 2012, DSP's hot metal production would increase to 3.2 million tonnes from the current level of two million tonnes. According to Dr S.K. Bhattacharya, Managing Director of DSP, the SAIL board has approved the plant's proposal for setting up a bloom caster and two ladle furnaces during 2005-06. "This is part of a total package and an ongoing exercise. So, it will be difficult to tell the exact amount of investment that we would be making for this year," Dr Bhattacharyya told reporters at a press conference on Friday. However, he said that the bloom caster would cost Rs 270 crore. Its capacity would be 0.85 million tonnes per annum. The Italy-based Daneili Centro is heading a consortium for setting up the bloom caster. It would be commissioned by March 2006. DSP wants to reduce the share of semi-finished steel products to 10 per cent by 2012 from the present level of 50 per cent. It has proposed to set up a bar and rod mill and a medium structural mill. SAIL has given an in-principle approval. At present, DSP is preparing a feasibility report for these two mills. The cost of the bar and rod mill would be Rs 600 crore-700 crore and the structural mill would cost Rs 500 crore. During 2004-05, DSP's gross sales grew to Rs 4,029 crore from Rs 3,049 crore in 2003-04. Profit before tax jumped to Rs 784 crore from Rs 81 crore. When asked whether the plant would succeed in maintaining these profit margins, Dr Bhattacharyya said the plant management had targeted a 10-per cent growth in the top and bottom lines. Like other steel plants, DSP too is heavily dependent on imported coking coal and efforts are being made to reduce it. Coal tar is already injected in the first blast furnace. Coal dust would soon be injected in the second and third blast furnaces. "We are also mixing inferior coal with the imported coking coal to the extent of 10 per cent. It has helped us in reducing our total coal bill," he said. Nilotpal Roy may head IISCO
SUBSEQUENT to the merger of the Burnpur-based Indian Iron & Steel Co Ltd with SAIL, the management of the steel behemoth has decided to appoint a separate Managing Director for IISCO. Mr Nilotpal Roy, who is currently Executive Director (Works) of Durgapur Steel Plant, is expected to take over as the managing director of IISCO. Sources in SAIL confirmed this development but added that the formal appointment was yet to be made. "It can happen any day," sources said. At present, Dr S.K. Bhattacharyya is the Chairman of IISCO's board of directors. Following the merger, IISCO, which is currently a wholly-owned subsidiary of SAIL, will operate as one of its plants. Dr Bhattacharyya said more synergistic activities would be planned between IISCO and the other four SAIL plants. He, however, did not disclose any details.
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