The Hindu Business Line : ‘Raw material security essential for steel industry’

New Delhi, Sept 10 The steel industry is faced with the dual challenge of rising input costs and keeping product prices under control in the national interest of keeping inflation under check. In this situation, it is imperative that the availability of raw material is secured, the Chairman of Steel Authority of India Ltd (SAIL), Mr S.K. Roongta, said at the company’s 36th annual general meeting held here on Wednesday.

In addition to the various strategies being implemented by the company for meeting its raw material needs, the company has also started developing coking coal mines with captive washery at Tasra and is simultaneously developing Sitanala coking coal block. Taken together they will have an annual capacity of four million tonnes, he said.

With the Indian economy entering a steel-intensive phase of development, SAIL is reorienting its approach and strategies, he said.

Distribution

Apart from raw material security the company is also strengthening its distribution network, giving impetus to new business initiatives through collaborations and joint ventures, and developing new and superior grades of steel to provide enhanced value to the customers, Mr Roongta said.

He pointed out that the record turnover and profit, best-ever operating efficiency parameters and highest-ever production and sales achieved during 2007-08 and in the first quarter of the current fiscal indicate the success of these strategies, especially relating to improvement in equipments and labour productivity, aggressive cost cutting and increase in value-added steel production.

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