Calcutta, Aug. 24: Steel Authority of India Ltd (SAIL) plans to increase production volumes in its four constituent plants within a year by 10 per cent using existing resources. This will help the company raise production volume to an unprecedented 11 million tonnes.
A senior SAIL executive said the first quarter performance had provided an impetus to the company. The integrated plants at Bhilai, Bokaro, Durgapur and Rourkela have been given mandate to raise production by at least 10 per cent to meet the current market demands.
SAIL is also hopeful of exporting over 1 million tonnes of saleable steel in 2003-04 compared with 8.5 lakh tonnes last year.
“Given the current growth in demand and prices, the turnover of the company should cross Rs 20,000 crore in 2003-04 and net profit is almost in sight if nothing untoward happens,” the executive said.
The growth in volume production without making any major capital investment will enable SAIL to have an additional income of over Rs 1000 crore.
The company should be able to keep its cost-cutting exercise in place in 2003-04 with a target of saving Rs 500 crore, the official said. “Cost-cutting exercise was taken up five years ago and till date the company has saved over Rs 3,500 crore. This has helped us to stay afloat even in the face of pressure from different quarters. We have decided to carry on this exercise as long as we can reduce our production cost.”