Recently the government reviewed the performance of the Ministry of Steel and its PSUs. It was noted that India attained the position of the 5th largest crude steel producing country in the world in 2006, as per the yearly benchmarking surveys conducted by the International Iron & Steel Institute (IISI), an improvement over India's international ranking of 8th position in 2003.
India retained its position as the World's Largest Producer of Sponge Iron. Steel production capacity in the country by the year 2012 will be nearly 124 million tonnes. India is expected to become the second largest steel producing nation in the world by 2015. Crude Steel Production grew at more than 10 % annually from 34.71 million tonnes in 2002-03 to 53.90 million tonnes in 2007-08. Production of finished steel at 55.27 million tonnes during 2007-08 as against 40.71 million tonnes in 2003-04. ?Sponge iron grew at a CAGR of 22 % to reach a level of 18.35 million tonnes in 2006-07 compared to 7.68 million tonnes in 2002-03. There was improved Capacity Utilization of Public Sector Steel Plants in from 86% in 2002-03 to 91% in 2007-08.
Domestic and foreign investors have shown a great deal of interest in setting up steel capacities in the country. 193 MOUs have been signed in various States with total planned capacity of around 243 million tonnes and a total proposed investment of over Rs. 5.14 lakh crore. Major investment plans in the States of Orissa, Jharkhand, Karnataka, Chhattisgarh and West Bengal. The likely capacity achievable by 2019-20 will be over 290 million tonnes. Going by estimate of Rs. 4,000 crore investment per million tonne of additional capacity, the sector is likely to see investment of Rs. 2,76,880 crore by 2012 and Rs. 8,70,640 crore by 2020.
The consolidated Profit Before Tax (PBT) of PSUs under Ministry of Steel has increased nearly four times from Rs 5,298 crore in 2003-04 to Rs. 20,624 crore in 2007-08. Combined contribution of Steel Ministry PSU's and companies to the Central and State Government Exchequers has gone up by 237% from Rs 5,829 crore in 2003-04 to Rs. 19,649 crore in 2007-08. SAIL has become virtually debt free. Borrowings have reduced from Rs. 8690 crore as on 1st April 2004 to Rs 3045 crore as on March 31, 2008. Wealth of more than Rs 76,536 crore has been created by the company as on 31.03.2008 (through market capitalization) as against Rs 13,321 crore as on 31.03.2004.
?RINL became a debt free company in October '03 and wiped out all accumulated losses in Jan 2006. ?MECON became a net profit making company in 2004-05 from a loss making situation in 2003-04. The net loss of Rs 10.72 crore in 2003-04 became a net profit of Rs. 28.30 crore in 2007-08, representing a 364 % turnaround in the position from 2003-04.
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NMDC, the second PSU under Ministry of Steel to be accorded the Navratna status in January 2008, is now one of the top ten companies listed on the Bombay Stock Exchange by Market Capitalization. MOIL became a Rs. 1000 crore company and a Miniratna category–I company in 2007.?MSTC, a zero debt company became a Miniratna in 2005-06 became a Schedule B company in 2007-08.
SAIL and RINL are in the midst of ambitious expansions to adopt the best technology and double their production capacities. SAIL's Rs 54000 crore expansion plan is expected to raise its capacity to 26.2 million tonnes per annum of crude steel production by 2010 from its present production level of 14.6 million tones per annum.
RINL's expansion plan is expected to take it present capacity of 3 Million tonnes per annum of liquid steel production to 6.3 Million tonnes and is expected to be completed by February 2010 at an estimated cost of around Rs 9000 crore.
?NMDC plans to expand its present iron ore production capacity of 30 million tonnes to 50 million tonnes per annum by 2014-15 through-Capacity expansion of existing mines; opening of new mines; value addition into sponge iron, pellets and steel. Green field steel plant will be set up in Chhattisgarh.
Merger of Indian Iron and Steel Company (IISCO) with SAIL was completed in February 2006. ?Merger of Kudremukh Iron & Steel Company (KISCO) with Kudremukh Iron Ore Company Ltd. (KIOCL) completed during 2007. Merger of Bharat Refractories Limited (BRL) with SAIL approved by the Government on 24.04.2008. ?Merger of Sponge Iron India Limited (SIIL) with NMDC is likely to be completed during 2008. Already Rana Som, NMDC CMD, has taken over as chairman of SIIL. In addition merger of MEL with SAIL is in progress.
Kulti works of the erstwhile IISCO was revived as 'SAIL Growth Works'- a separate unit of Steel Authority of India Limited. Restructuring and revival proposal of MECON Ltd. was approved at a total cost of Rs100.72 crore during February 2007; MECON employees benefited with the enhancement of retirement age of employees from 58 to 60 years.
MOU was signed with Steel Complex Ltd., Calicut, Kerala for its revival. SAIL will acquire 50% shares in SCL. Further the acquisition and merger of Neelachal Ispat Nigam Ltd.(NINL) by SAIL and acquisition of National Iron & Steel Company Ltd. (NISCO) by SAIL will be completed soon.
India retained its position as the World's Largest Producer of Sponge Iron. Steel production capacity in the country by the year 2012 will be nearly 124 million tonnes. India is expected to become the second largest steel producing nation in the world by 2015. Crude Steel Production grew at more than 10 % annually from 34.71 million tonnes in 2002-03 to 53.90 million tonnes in 2007-08. Production of finished steel at 55.27 million tonnes during 2007-08 as against 40.71 million tonnes in 2003-04. ?Sponge iron grew at a CAGR of 22 % to reach a level of 18.35 million tonnes in 2006-07 compared to 7.68 million tonnes in 2002-03. There was improved Capacity Utilization of Public Sector Steel Plants in from 86% in 2002-03 to 91% in 2007-08.
Domestic and foreign investors have shown a great deal of interest in setting up steel capacities in the country. 193 MOUs have been signed in various States with total planned capacity of around 243 million tonnes and a total proposed investment of over Rs. 5.14 lakh crore. Major investment plans in the States of Orissa, Jharkhand, Karnataka, Chhattisgarh and West Bengal. The likely capacity achievable by 2019-20 will be over 290 million tonnes. Going by estimate of Rs. 4,000 crore investment per million tonne of additional capacity, the sector is likely to see investment of Rs. 2,76,880 crore by 2012 and Rs. 8,70,640 crore by 2020.
The consolidated Profit Before Tax (PBT) of PSUs under Ministry of Steel has increased nearly four times from Rs 5,298 crore in 2003-04 to Rs. 20,624 crore in 2007-08. Combined contribution of Steel Ministry PSU's and companies to the Central and State Government Exchequers has gone up by 237% from Rs 5,829 crore in 2003-04 to Rs. 19,649 crore in 2007-08. SAIL has become virtually debt free. Borrowings have reduced from Rs. 8690 crore as on 1st April 2004 to Rs 3045 crore as on March 31, 2008. Wealth of more than Rs 76,536 crore has been created by the company as on 31.03.2008 (through market capitalization) as against Rs 13,321 crore as on 31.03.2004.
?RINL became a debt free company in October '03 and wiped out all accumulated losses in Jan 2006. ?MECON became a net profit making company in 2004-05 from a loss making situation in 2003-04. The net loss of Rs 10.72 crore in 2003-04 became a net profit of Rs. 28.30 crore in 2007-08, representing a 364 % turnaround in the position from 2003-04.
?
NMDC, the second PSU under Ministry of Steel to be accorded the Navratna status in January 2008, is now one of the top ten companies listed on the Bombay Stock Exchange by Market Capitalization. MOIL became a Rs. 1000 crore company and a Miniratna category–I company in 2007.?MSTC, a zero debt company became a Miniratna in 2005-06 became a Schedule B company in 2007-08.
SAIL and RINL are in the midst of ambitious expansions to adopt the best technology and double their production capacities. SAIL's Rs 54000 crore expansion plan is expected to raise its capacity to 26.2 million tonnes per annum of crude steel production by 2010 from its present production level of 14.6 million tones per annum.
RINL's expansion plan is expected to take it present capacity of 3 Million tonnes per annum of liquid steel production to 6.3 Million tonnes and is expected to be completed by February 2010 at an estimated cost of around Rs 9000 crore.
?NMDC plans to expand its present iron ore production capacity of 30 million tonnes to 50 million tonnes per annum by 2014-15 through-Capacity expansion of existing mines; opening of new mines; value addition into sponge iron, pellets and steel. Green field steel plant will be set up in Chhattisgarh.
Merger of Indian Iron and Steel Company (IISCO) with SAIL was completed in February 2006. ?Merger of Kudremukh Iron & Steel Company (KISCO) with Kudremukh Iron Ore Company Ltd. (KIOCL) completed during 2007. Merger of Bharat Refractories Limited (BRL) with SAIL approved by the Government on 24.04.2008. ?Merger of Sponge Iron India Limited (SIIL) with NMDC is likely to be completed during 2008. Already Rana Som, NMDC CMD, has taken over as chairman of SIIL. In addition merger of MEL with SAIL is in progress.
Kulti works of the erstwhile IISCO was revived as 'SAIL Growth Works'- a separate unit of Steel Authority of India Limited. Restructuring and revival proposal of MECON Ltd. was approved at a total cost of Rs100.72 crore during February 2007; MECON employees benefited with the enhancement of retirement age of employees from 58 to 60 years.
MOU was signed with Steel Complex Ltd., Calicut, Kerala for its revival. SAIL will acquire 50% shares in SCL. Further the acquisition and merger of Neelachal Ispat Nigam Ltd.(NINL) by SAIL and acquisition of National Iron & Steel Company Ltd. (NISCO) by SAIL will be completed soon.
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