Ranchi, Nov. 27: Mecon executives want to go back to Steel Authority of India Limited (SAIL).

This, said a section of officers, would help SAIL and Mecon given the company’s improved performance over the last two financial years.

“Members of our executive association have met the SAIL chairman and the Union steel minister to apprise and convince them of the positive aspects of such a merger,” said an executive, who did not wish to be named.

The officers claimed that the response of the SAIL top brass was “positive”, but as the merger will be settled at the political level, the proposal would have to be ratified by Parliament.

The proposal is believed to have the blessings of the Mecon management. Earlier, the powers-that-be were reluctant to accept such a move. “But now, the management has made it known that if there is a proposal for merger, they would accept it,” sources said.

Over the past few months, there has been an upswing in Mecon’s fortunes. As of date, the work order position is healthy both on the consultancy front as well as in supply.

“One can say that our company has already achieved the annual target in both consultancy and supply much before the deadline in March,” the sources said.

Against a projected target of consultancy worth Rs 85 crore by March end, the company has already work order worth around Rs 80 crore and would definitely cross the Rs 120 crore mark by March-end. Similarly, in supply the company is likely to bag work order in excess of Rs 200 crore by March-end, sources said.

“If everything goes well, a turnkey project worth Rs 300 crore too would be in the bag as the management has decided to bid for that work, whose details are being kept secret at present because of professional reasons, said a Mecon source.

The company’s financial position has improved a lot and will improve further when cash starts flowing at the start of the next fiscal from the projects and work underway.

The executives want to cash in on this happy run and have initiated steps to merge with SAIL.

Also, divestment threat has been hovering over the company for quite some time and such a marked improvement in fortune might turn the tide in its favour, sources said.

The company had already reduced its losses by about Rs 80 crore in the last fiscal compared to the 2001-02 fiscal. By the end of the current fiscal, the losses should be wiped out, they said. The executives are also awaiting implementation of the recommendations of management consultant PricewaterhouseCoopers, which suggested pruning non-productive workforce. Though the target was to give voluntary retirement to 850 employees, barely 400 employees have opted for VRS.

The next phase of PWC’s recommendation involves setting up of strategic business units at five places, each devoted to a particular field.