The Hindu Business Line : SAIL chief for merger with Rashtriya Ispat

Kolkata, Sept. 11 The Chairman & Managing Director of SAIL, Mr S.K. Roongta, today presented a favourable case for the merger of Rashtriya Ispat Nigam Ltd (RINL) with Steel Authority of India Ltd.

Addressing members of the Merchants’ Chamber of Commerce here today, Mr Roongta said there was a lot of synergy between SAIL and RINL and the merger would help the merged entity to leverage upon synergies in areas such as technology, raw materials, and marketing.

Since RINL is a port-based plant, added advantages could also be derived.

He, however, clarified that the central government would have to take a final call in the matter since “both RINL and SAIL were owned by the government and the owner has to decide in the matter.”

On SAIL’s vision for 2020, Mr Roongta said that, while the company was now focussed on brownfield expansions, by 2020, it was hopeful of maintaining its present share of 30 per cent of the domestic steel market.

It is estimated that the country’s steel production would be 200 million tonnes by 2020. By that count, SAIL’s share at that time is expected to be 60 mt. As of now, the company has pegged a production target of 22.5 mt by 2010, with hot metal production in 2010 expected to be 26 mt.

According to Mr Roongta, SAIL has decided to set up a pelletisation plant nearby its Gua mines. Expressions of interest in this regard have been sought. When the modernisation process is complete, 100 per cent of the company’s product portfolio would comprise finished products.

In the evening, Mr Roongta met the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, at Writers’ Buildings and discussed SAIL’s plans for Durgapur Steel Plant, IISCO Burnpur and Alloy Steels Plant, Durgapur.

Later, he told newspersons that SAIL had firmed up plans to invest Rs 17,000 in the State.

Of this, Rs 10,000 crore would be invested in IISCO Burnpur, Rs 6,500 crore on the modernisation of Durgapur Steel Plant and Rs 500 crore in Alloy Steels Plant, Durgapur.

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