Ranchi, Sept. 12: To address the dual challenges of higher production cost and lower realisation from sale, Steel Authority of India Limited (SAIL) will adopt cost optimisation initiatives and save Rs 5,000 crore over the next three years.
SAIL chairman C.S. Verma offered the information after a two-day meet on cost control and effectiveness that ended at Management Training Institute in Ranchi today.
“In the wake of the Union government’s revised target for steel production, SAIL has also retailored its own and aims at a yield of 50MT by 2025,” Verma said. “Though the global steel scenario is not encouraging at the moment and India too has to bear the impact, SAIL will increase its annual production from 14MT last year to 23MT by the end of the current fiscal,” he added.
Under its modernisation plan worth Rs 72,000 crore, the steel giant has already placed orders for 90 per cent of the amount and Rs 48,000 crore has been spent, he further informed.