The Hindu Business Line : Vizag Steel achieves Rs 9,126-cr turnover

THE CHAIRMAN and Managing Director of Visakhapatnam Steel Plant, Mr Y. Sivasagara Rao (right), and Mr P.K. Bishnoi, Director, Finance addressing a press conference in Visakhapatnam on Thursday. — K.R. Deepak

Visakhapatnam April 5 Rashtriya Ispat Nigam Ltd (RINL) here has achieved sales turnover of Rs 9,126 crore during 2006-07 and is aiming to touch the Rs 10,000-crore mark this fiscal, according to Mr Y. Sivasagara Rao, Chairman and Managing Director.

Reviewing the performance of the Visakhapatnam Steel Plant at a press meet here on Thursday, he said the liquid steel production was 3.61 million tonnes (mt), saleable steel production 3.29 mt and finished steel production 3.01 mt. The special (or value-added) steel production was 1.09 mt.

He said the profit before tax was provisionally projected at Rs 2,246 crore. During the last fiscal which was the plant's Silver Jubilee year, the Prime Minister had inaugurated an expansion project to double the plant's capacity to 6.3 mt at an investment of Rs 8,600 crore. During 2006-2007, piling and civil works as well as structural works had begun. "Contracts worth Rs 3,500 crore have been awarded for the expansion project and during the current financial year Rs 2,500 crore would be spent on it," he said.

Mr Sivasagara Rao said the corporate plan of the plant envisaged increasing the capacity of the plant gradually to 6.3 mt by 2008-2009, 8.5 mt by 2009-2010, 13 mt by 2013-2014 and 16 mt by 2017-18. It would require roughly Rs 25,000 crore of investment, which would be met from internal resources. Though the plant did not have captive mines, he said, there would not be any problem in getting the required iron ore.

He said RINL had spent Rs 7 crore in 2006-07on various works as a responsible corporate citizen and the amount would be hiked to Rs 29 crore during the current financial year.

Exports

The exports during the last fiscal amounted to Rs 435 crore against Rs 500 crore in the previous year. "There is plenty of export demand, but we are concentrating on the domestic market," he explained.

During the last fiscal, RINL had taken up coastal shipping of products for the first time from here to Kolkata on a trial basis, he said.

Mr Sivasagara Rao said RINL had set up 99 district-level distribution centres so far to supply steel to rural areas at metro prices and 11 more would be added during the current year.

Future projects

A joint venture with Manganese Ore Ltd for a ferry-alloy project, another joint venture with NTPC for setting up a gas-based power plant, and a slag cement unit were some of the projects under implementation. RINL was also taking stakes in coal mines abroad, he added. A stake in Orissa Mineral Development Corporation was also under consideration.

Mr Sivasagara Rao, who hails from Andhra Pradesh, announced that he would be retiring by the end of the month and Mr Bishnoi, currently the Director (Finance), would be his successor.