Brief Overview of Steel Authority of India Ltd.(SAIL)

Transcription

1 Brief Overview of Steel Authority of India Ltd.(SAIL) SAIL is India's largest steel producing company. With a turnover of Rs. 50,348 crore, the company is among the five Maharatnas of the country's Central Public Sector Enterprises. SAIL has five integrated steel plants, three special plants, and one subsidiary in different parts of the country. (1) CAPITAL STRUCTURE OF SAIL AS ON 30TH SEP 2011 Rs cr ( 4,13,05,25,289 equity shares of Rs 10 each fully paid) (2) PROFIT / LOSS OVER THE LAST THREE FINANICAL YEARS Profit (Crore) (3) DIVIDEND DECLARED OVER LAST THREE YEARS in % and MONETARY TERMS Amount (Rs. in Crore) % of share capital (4) NEW INITIATIVES INCLUDING JVs OF SAIL (a) Merger & Acquisition (M&A): (ii) (b) Merger of Maharashtra Elecktosmelt Limited (MEL) with SAIL: The Ministry of Corporate Affairs (MCA) in June 11 has issued the Order of sanctioning the Scheme of Amalgamation of Maharashtra Elektrosmelt Limited (MEL) with Steel Authority of India Limited (SAIL) under Section of Companies Act, The appointed date of amalgamation is MEL has now become a unit of SAIL and it has been renamed as Chandrapur Ferro Alloy Plant. Transfer of Salem Refractory Unit of Burn Standard Company Limited to SAIL: Cabinet Committee on Economic Affairs (CCEA) in June 10 approved transfer of Refractory Unit of BSCL at Salem and authorized Ministry of Steel and Deptt. of Heavy Industries (DHI) to work out operational steps for transfer of Refractory Unit of BSCL at Salem in consultation with M/o Corporate Affairs (MCA). To finally effect this transfer, Sale Deed will be signed on 1 st December, 2011 for which SAIL has incorporated a new subsidiary company i.e. SAIL Refractory Company Limited under Section 293(1)(a) of the Companies Act, Joint Ventures: Revival of Sindri unit of Fertiliser Corporation of India Ltd. (FCIL) s : The issue of revival of the closed units of FCIL was taken up by the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 4th August, 2011 and CCEA have approved the proposal for revival of the

2 closed unit of FCIL with the stipulation that the BIFR proceedings be expedited. As per the Cabinet approval, the consortium of SAIL and NFL has been nominated for revival of the Sindri Unit of FCIL. It is planned to set up a Steel plant, power plant and Urea plant at the Fertiliser Corporation of India Ltd. (FCIL) s closed unit of Sindri, Jharkhand. (ii) Joint Venture with M/s RITES: SAIL and RITES have formed a Joint Venture Company namely SAIL RITES Bengal Wagon Industry Pvt. Ltd. which will have the capacity to manufacture 1500 wagons per annum (manufacture of 1200 wagons and rehabilitation of 300 wagons) which will include BOXN type wagons, specialized high end wagons and modern stainless steel wagons at Kulti. The work by the JV Company has already been commenced (iii) (c) (ii) Joint Venture with Government of Kerala for revival of Steel Complex Limited: SAIL has formally acquired 50% of the shares held by the Government of Kerala (GoK) in Steel Complex Limited (SCL), Kozhikode and taken over the operations of SCL in February 11. SAIL SCL Limited, the Joint Venture Company resulting from the acquisition, will work towards the revival of SCL. The JV is in line with the Government s policy of bringing together synergies of PSUs and strengthening them to be competitive in the market. Strategic Alliances: Hajigak Iron Ore Deposits Owned by Government of Afghanistan: SAIL is leading a Consortium of Indian steel/mining Companies viz NMDC, RINL, JSW, JSPL, JSW Ispat and Monnet Ispat, and has formed a Consortium to bid for joint bidding for Hajigak Iron Ore Mines, which are estimated to have a reserve of 1.8 billion tonnes of high quality magnetite with per cent iron (Fe) content. This is the first time that Indian, public and private sector companies have come together to jointly bid for an iron ore asset abroad. The Consortium has submitted the bid document with the Ministry of Mines, Government of Afghanistan in September Kobe Steel: SAIL is jointly working with Kobe Steel Limited [KSL], a renowned Japanese Steel maker, for ascertaining the feasibility of using ITmK3 technology [Iron Making Technology Mark Three] developed by KSL for producing premium grade iron in the form of nuggets using iron ore fines and non coking coal. The annual production capacity of ITmk3 Plant is envisaged to be around 0.5 million tonnes to produce premium grade Iron nuggets. (iii) (iv) POSCO: SAIL & POSCO are in discussions for a possible establishment of JV initiatives in connection with setting up a Finex technology based steel plant at Bokaro or at any other location as mutually agreed and a CRNO unit in State of Maharashtra. Expansion of Captive Power Plants of SAIL: SAIL is planning to expand the captive power generating capacity at BSP and RSP through its Joint Venture with NTPC by installing 2x250 MW Units and BSP and 1x250 MW unit at RSP. Feasibility studies for these power projects are

3 being conducted. Simultaneously, actions are being taken for obtaining statutory clearances, as well as allocation of coal and water. (v) Installation of Renewable Energy Based Power Plants : In line with policy framework provided by Electricity Act, 2003 and National Electricity Policy, Electricity regulatory Commissions of various states which mandates all users of captive power generation to either purchase / generate a specified minimum percentage of captive power generated from renewable energy sources (Solar, Bio Mass, Wind, Small Hydro etc), a long term strategy to meet renewable energy purchase Obligation has been worked out and options are being evaluated for installing Captive Power generation based on renewable energy sources. (d) Enterprise Scorecard: For the first time since inception, SAIL has introduced the Balanced Scorecard system for evaluation/appraisal of performance management and strategy deployment. (5) EXPANSION & MODERNIZATION OF SAIL STEEL PLANT: SAIL had drawn up a Modernisation & Expansion Plan for its five integrated steel plants at Bhilai, Durgapur, Rourkela, Bokaro & Burnpur and special steels plant at Salem including raw material resources and other related facilities. The plan, apart from increasing the production capacity addresses the vital issues of elimination of technological obsolescence, installation of energy efficient & environment friendly technologies, value addition/ product mix improvement/ sustenance of existing assets of the plants and introduction of customer centric processes such as Enterprise Resource Planning (ERP) and Manufacturing Execution System (MES). The upgradation of existing facilities at steel plants is necessary to meet the stringent quality requirements of the customers and to remain cost competitive. The Modernisation & Expansion Plan envisages increase in capacity of hot metal, crude steel & saleable steel as follows: (Million Tonnes) Items Installed capacity Capacity after expansion Hot Metal Crude Steel Saleable Steel The indicative investment for current phase works out to Rs. 61,870 crore. Besides, provision of Rs. 10,264 crore has been made towards investment in existing mines under Raw Materials Division (RMD) & development of Rowghat mine.

4 The plant wise capacity enhancement details for current phase are given below: Hot Metal Installed Capacity After Ph I Expansion (million tonnes) BSP DSP RSP BSL ISP ASP SSP VISL Total Crude Steel Installed Capacity After Ph I Expansion Saleable Steel Installed Capacity After Ph I Expansion Under the aforesaid Modernisation & Expansion Plan of SAIL, expansion of Salem Steel Plant has been completed in Sep 10 and the facilities are in regular operation. For other plants, all major packages have been ordered and these packages are under various stages of execution. The current phase of Modernisation & Expansion of SAIL is expected to be completed progressively by

5 (6) CSR ACTIVITIES OF SAIL BROAD POLICY AND FUNDS UTILIZED OVER THE PAST THREE YEARS SAIL CSR Policy SAIL recognizes that its business activities have direct and indirect impact on the society. The Company strives to integrate its business values and operations in an ethical and transparent manner to demonstrate its commitment to sustainable development and to meet the interests of its stakeholders. The Company is committed to continuously improving its social responsibilities, environment and economic practices to make positive impact on the society. Guiding Principles: Toward this commitment, the Company shall: Create a positive footprint within the society to make a meaningful difference in the lives of people by continually aligning its initiatives to the goals for sustainable development. Maintain commitment to business & people for quality, health and safety in every respect. Undertake ethical business practices across the supply chain. Make positive impact on the environment and promote good environmental practices. Promote equality of opportunity and diversity of workforce throughout its business operations. SAIL CSR Thrust Areas Since inception, SAIL has been contributing greatly in the socio economic development of the areas in and around its plants and units. Company has taken specific initiatives in the field of environment conservation, health and medical care, education, women s upliftment, potable drinking water availability and ancillary development. By systematically addressing a gamut of issues such as health and medical welfare, education, access to water, sanitation, power and roads, women's empowerment, generation of employment, electricity, sports, culture, etc., at each of its plants and units, SAIL has contributed immensely to the economic development of its peripheral areas. By partnering creatively with small, local entrepreneurs, NGOs, state government and the centre, SAIL has ensured that the benefits arising out of its activities actually reach the grassroots level and not merely remain on paper. Under Peripheral Development various activities are being undertaken around the plants/units upto a radius of 16 Kms. Several socio economic surveys reveal considerable benefits emanating from SAIL s efforts. Programmes are undertaken by each plant in close coordination with the State and District administrations as well as the local Panchayats, social organizations and people's representatives. All plants/units are making special efforts to initiate new projects in the area of road connectivity, construction of bridges/culverts, access to improved water sources, etc.

6 Fund utilization statement ( to ) (Rs in Lakhs) Year Budget Utilization (7) STATUS OF BOARD LEVEL APPOINTMENTS AS ON Name of the CPSE : Steel Authority of India Ltd. 2. Schedule of the Company : A 3. Whether listed : Yes 4. Administrative Ministry : Ministry of Steel 5. Number of Sanctioned Posts of s : Functional: Seven(7) Official: Two(2) Non Official : Nine(9) 6. Details of s in Position : S. Details of s Name Date Date Date of No. Designation Category (Functional/Official/ Non Official) of Birth of Joining Superannuation/ Tenure ending 1. Chairman Functional Sh. C.S. Verma (Finance) Functional Sh. A.K. Chaudhary (Personnel) Functional Sh. H.S. Pati (Commercial) Functional Sh. S. Mukherjee (Technical) Functional Sh. S.S. Mohanti ( Raw Material Functional Sh. A.K. Pandey & Logistics) 7. (Projects & Functional Sh. T.S. Suresh Business Planning) 8. Government Official Sh. S. Machendranatha Co terminus 9. Government Official Sh. Upendra Prasad Co terminus Singh 10. Non Official Part Time Non Official Prof. Deepak Nayyar

7 11. Non Official Part Time 12. Non Official Part Time 13. Non Official Part Time 14. Non Official Part Time 15. Non Official Part Time 16. Non Official Part Time 17. Non Official Part Time 18. Non Official Part Time Non Official Sh. A.K. Goswami Non Official Dr. Jagdish Khattar Non Official Prof. Subrata Chaudhur Non Official Sh. P.C. Jha Non Official Sh. P.K. Sengupta Non Official Dr. Isher Judge Ahluwalia Non Official Sh. Sujit Banerjee Non Official Sh. A.K. Srivastava Details of Vacant Posts of s(if any) : NIL