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SAIL sets higher production, sales targets for FY’12

Maharatna Steel Authority of India Limited (SAIL) has laid highest thrust upon modernisation and expansion projects, including training of project personnel, in the memorandum of understanding (MoU) signed with the Ministry of Steel for the year 2011-12.

Secretary (Steel) PK Misra and SAIL chairman CS Verma signed the annual MoU in New Delhi.

SAIL has also incorporated new key thrust areas, including corporate governance, green supply chain and international alliances in the MoU for financial year 2012. It is noteworthy that SAIL’s performance with regard to MoU parameters has received ‘Excellent’ rating since 2002-03.

As per the MoU, SAIL plans to achieve higher saleable steel production than planned for 2010-11 by utilising more than 114% of capacity. The company has maintained its thrust on production of special/value-added steels and also plans to produce higher volumes than planned for the previous year.

Gross sales projections are over 4% higher than planned for FY ’11.
For modernisation and expansion projects, the weightage on achievement of milestones continues to be 10%, the highest weightage amongst dynamic parameters.

While fixing 1.1% of gross margin as R&D expenditure for 2011-12, SAIL has identified seven key projects in this area and targeted 27 new patents. In relation to corporate governance, which is a mandatory parameter as per DPE guidelines, SAIL has stated in the MoU that it will comply with all the 30 requirements.

In the area of sustainability, which is another mandatory parameter, the company has decided upon ‘greening’ of its supply chain by targeting achievement of ISO:14001 certification for some of its warehouses during 2011-12.

Other thrust areas identified under sustainability are reduction in specific energy consumption, specific water consumption and particulate matter emission load. In addition, with its focus on becoming a global player, SAIL has decided to sign a number of MoUs with foreign companies and has included this as an MoU parameter.

DIVIDEND PAID

Union Minister of State for Steel Beni Prasad Verma, on behalf of Steel Authority of India, handed over a cheque for Rs. 425.36 crore to Prime Minister Dr Manmohan Singh, towards 12% interim dividend payment to the Government of India for the year 2010-11.

The Government holds 85.82% of SAIL’s total paid-up equity capital of Rs. 4,130.40 crore.

Along with Rs. 80.74 crore as dividend tax, total payment by SAIL with respect to interim dividend to the Government works out to Rs. 506.10 crore. Besides this, total contribution made by SAIL to the national exchequer (towards excise and custom duties, corporate tax, sales tax, royalties, etc.) during the first nine months of 2010-11 was Rs. 7,737 crore.

The Board of Directors of SAIL will recommend final dividend for 2010-11 while approving the financial results for the year some time in the first quarter of financial year 2012. After obtaining the approval of shareholders in September 2011, final dividend would be paid to the Government and other shareholders of the company. It is pertinent to note that since inception, SAIL has made total dividend payouts of Rs. 8,896 crore equivalent to 216% of its paid-up capital.

Of this, payment to the Government of India is Rs. 7,666 crore, besides dividend tax of Rs. 1,262 crore. It may be recalled that despite pressure on steel prices and sharp increase in input costs, particularly the price of imported coking coal.

Help On Wheels

A fully-equipped ambulance purchased by NGO—Turning Point Foundation with financial assistance of Rs. 240,000 from SAIL for transportation of patients to and from hospitals/homes/health camps and carrying out other social welfare activities, was recently flagged off by SAIL Director Personnel BB Singh from Ispat Bhavan.
SAIL has earlier provided mobile medical units/ambulances to NGOs such as Deepalaya, Anygraha, Drishtidaan, HelpAge India, etc., as part of its well-defined Corporate Social Responsibility policy with the motto of ‘making a meaningful difference in people’s lives’.

Since inception, SAIL has pioneered the cause of providing health facilities to all sections of society. The company has established 54 primary health centres, 12 reproductive & child health centres, 17 hospitals and 7 super-specialty hospitals to provide specialized healthcare to over 30 million people living in the peripheral areas of its plants and units.

To create health awareness, SAIL has been organising strategically-planned health camps in and around its plants/units.

Villagers are sensitised on various health issues, and people detected with major ailments are referred to the multi-speciality SAIL hospitals. SAIL bears the entire cost of the patients’ and attendants’ travel, stay and treatment. In 2009-10, more than 3,850 camps were organised, benefitting over 2.32 lakh people by providing free health check-up, path lab treatment, medicines and immunisation.

Jagdishpur Unit assured of all-possible support by Steel Minister

The first phase of revival of Jagdishpur SAIL Unit (JSU), the erstwhile plant of Malvika Steel at Jagdishpur (UP), is expected to be completed by November 2011. A Warehouse with a capacity of 12,000 tonnes per annum and a Galvanised Sheet Corrugation unit of capacity 13,000 tonnes per annum are in the final stages of completion and shall be ready for commissioning very soon.

Work for two more units under the current phase, a TMT Bar Mill of capacity 150,000 tons per annum and a Crash Barrier Manufacturing unit of capacity 10,000 tons per annum is progressing as per schedule and shall be completed by November 2011.

Beni Prasad Verma, Union Steel Minister, held a meeting with senior officials from SAIL to review the progress of the ongoing revival work of Jagdishpur SAIL Unit. The Steel Minister envisaged an investment of around Rs. 10,000 crore for building a modern state-of-the-art steel making unit at Jagdishpur.

For Phase-2 development of JSU, discussions with Kobe Steel of Japan were held by a Joint Task Force. Options for setting up a 1,000-MW gas-based power plant and a steel plant based on gas-based DRI (direct reduced iron-making) technology and using Electric Arc Furnace for steel making with value added products are being examined. The Steel Minister stated that Ministry of Petroleum at the Centre has been requested for extending support for natural gas resources.

In response to a letter from SAIL Chairman expressing solidarity with the quake-affected people of Japan, Kobe Steel has informed that the loss of life and infrastructure in Japan is huge. However, all employees and plants of Kobe Steel were almost unharmed. Therefore, they can continue the joint work of feasibility study on the new steel works at JSU, shared the Minister.

The inputs of GP Sheets, Billets and HR sheets for all the 4 facilities will be sourced from the existing plants and units of SAIL. The finished products will be dispatched by road.

Verma assured that all possible efforts shall be made to expedite the completion of the project, and said that he would personally take up the matter at the highest levels in the Government.

The assets of erstwhile Malvika Steel at Jagdishpur were acquired by SAIL in the year 2009 and registered in SAIL's name in June 2010.

SAIL is carrying out many activities under Corporate Social Responsibility (CSR) in and around Jagdishpur. The School inside the campus has been renovated with basic amenities and playground. 210 children have been registered with the school and are studying. Medical health check up camps organized in nearby villages/ schools regularly.

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