Steel ministry asks SAIL to complete expansion plans on time
18 Aug 2009
The steel ministry has asked the Steel Authority of India to complete all the ongoing expansion programmes on time, citing a surge in domestic steel demand.
Reviewing the fiscal first quarter (April-June 2009-10) performance of the public sector steel major at a meeting here today, steel minister Verbhadra Singh said the steel sector should grow with the pick-up in industrial production.
SAIL, the country's largest steel producer, has lined up expansion and modernisation programmes involving investments of a total Rs70,000-crore.
"The economy looks set for a rebound considering the latest IIP numbers and the projections of GDP this fiscal," he said, adding, "This will translate into decent demand growth for steel in the near future."
SAIL reported a turnover of Rs9,747 crore during April - June 09-10, a decrease of 20 per cent over the same quarter last year. Net profit also fell 27.7 per cent to Rs1,326 crore.
SAIL's profitability was adversely affected by a reduction in average net sales realisation of saleable steel, escalation in input prices, mainly of imported coal, coke, ferro-silicon, increase in railway freight, increase in fuel cost surcharge by DVC and higher interest charges.