Company Background - SAIL

Incorporated in 1973, the Steel Authority of India (SAIL) is a giant among the steel majors in India. It is the largest steel conglomerate in the country and the world's ninth-largest steelmaker. It manages and operates five integrated steel plants at Bhilai, Madhya Pradesh; Bokaro, Bihar; Durgapur, West Bengal; Rourkela, Orissa; and Burnpur, West Bengal. It also has four units for special and alloy steels and ferro alloys at Durgapur, West Bengal; Salem, Tamilnadu; Chandrapur, Maharashtra; and Bhadravati, Karnataka.

SAIL operates nine iron ore, five limestone, three dolomite and three coal mines besides generating 700 MW of captive power. The Central Marketing Organisation, with its headquaters at Calcutta, monitors its domestic market through an expanding network of stockyards, dockyards, branch sales offices and consignment agents while the International Trade Division looks after its export of world-class steel to as many as 70 countries across the globe, by establishing close liaison with buyers abroad.

The company is the only producer of extra-wide (up to 3200 mm) and heavy plates, catering to the needs of the construction, automobile, shipbuilding, engineering and other sectors.

The subsidiaries of SAIL are The Indian Iron & Steel Company Ltd and Maharashtra Elektrosmelt Ltd. Bhilai Oxygen Ltd, which was one of the subsidiary company was wound-up by the order of dated 27th May 2005 of Hon'ble High Court of Delhi.

SAIL's plants and units have received ISO 9002/1 certifications and are well-equipped with the state-of-the-art technology to meet advanced needs and applications. ISO 9002-certified stainless steel is exported to several developed countries.

The Govt of India has approved the Financial and Business Restructuring of SAIL involving waiving of loans advanced to it from Steel Dvpt Fund to a value of Rs.5073 cr and Rs.381 cr from Govt of India; Provision of Govt guarantees with 50% interest subsidy for loan and interest thereon on Rs.1500 cr to be raised by SAIL from the market to finance reduction in manpower through voluntary retirement scheme; Provision of Govt guarantee for loan and interest thereon of Rs.1500 cr (incl.Rs.500 cr already agreed) to be raised by SAIL from the market primarily for meeting repayment obligation on past loans during 1999-2000. To initiate the process of divestment of the following non-core assets into a joint venture with protecting jobs of the existing employees SAIL has decided to sell, lease or dispose of by way of divesting the following undertakings of the company either through joint venture arrangement or otherwise. Captive Power Plants at Rourkela, Durgapur and Bokaro; Oxygen Plant-2 of Bhilai Steel Plant; Salem Steel Plant, Salem; Alloy Steels Plant, Durgapur; Visvesvaraya Iron and Steel Plant, Bhadravati; Rourkela Fertilizer Plant, Rourkela.

For Salem Steel Plant of SAIL the Company has sought expression of interest from interested parties for setting up of stainless steel melting,refining and casting facilities and also option for interest in Salem Steel Plant itself along with the above facilities.

The company has signed a joint venture agreement with Tata Iron & Steel and Kalyani Steel for the creation of a company to manage their steel e-marketplace, metaljunction.com.

The company tied-up with the National Building Construction Corporation (NBCC) for formation ofa consortium to help reconstruction activity in quake-hit Gujarat. The combine will initially concentrate on building low-cost, quake-hit and cyclone-resistant dwelling units suitable for rural Gujarat.

The company has completed the Modernisation Programme at Bhilai Steel Plant and also the Upgradation of Durgapur Steel Plant has also been completed during 2001-02. At Bokaro Steel Plant the equipment work is in progress and the Furnace was commissioned in 2002-03. The company incurred a capital expenditure of Rs.241 crores. The Company has entered into an agreement with Corus Consulting Ltd UK for Long Rail facility and the UK company will provide a technical back up support for SAIL.

During 2004-05 the company projects worth Rs.3000 crore at various stages of implementation and approval in the company. Some of the major ongoing schemes are Rebuilding of Coke Oven Battery-5, Upgradation of Blast Furnace-7 and Revamping of B-Strand of Wire Rod Mill at Bhilai Steel Plant: Bloom Caster with Associated facilities at Durgapur Steel Plant: Rebuilding of Coke Oven Battery-1, Capital Repair of BF-4 and Upgradation of ERW Pipe Plant at Rourkela Steel Plant: Rebuilding of Coke Oven Battery-5, Revamping/modification of Mae West Block System and housing machining in Finishing Stands F6-F12 at Bokaro Steel Plant. Some of the projects under approval are Upgradation of Slab Caster, RH Degassing and Ladle Furnace, Modernisation of Sinter Plant-II & Desulphurisation Unit in SMS-II at Bhilai Steel Plant: Coal Dust Injection in Blast Furnace(3&4) at Durgapur Steel Plant: Installation of Hot Metal Desulphurisation Unit at SMS-II at Rourkela Steel Plant: Upgradation of Tandem Mill & Pickling Line in cold Rolling Mill (CRM) and Installation of Coal Dust Injection in Blast Furnace (2 & 3).