January 29, 2002

'18'

    The Steel Ministry has asked SAIL to separate more number of employees in its VRS-2002 so that the strength of the company can be reduced to the level of one lakh by March 2005, as envisaged in the MoU signed by SAIL with the Ministry after it’s business and financial restructuring. It was also asked to increase its cost cutting measures to meet the enhanced salary and wage bill. Following the wage/ salary revision of the employees and officials the financial burden of the company has gone up by Rs. 480 crore. The Minister for Steel Shri Braja Kishore Tripathy was reviewing today the performance of Steel Authority of India Ltd. during the first half of this fiscal. The minister suggested creating a healthy and competitive work culture to increase the production and productivity with emphasis on quality and cost- effectiveness to meet the needs of the market in India and abroad. He expressed concern over increase in cash loss and lower turnover, operational profit and net sales realization during the year.

    The minister was informed that during December, 2001, integrated plants of SAIL have produced 8.19 lakh tonnes of saleable steel, one per cent more than its target and the production during April-December, 2001 has been 7.06 million tonnes representing 95 per cent of target. The SAIL was asked to make up its shortfalls during the last quarter and try to achieve targets on all fronts. Shri Tripathy noted the strategies adopted by SAIL to improve its marketing and other infrastructure to meet the challenges ahead. He the PSU to expedite the disinvestment of non-core units and earmarked plants. He asked to reduce high cost debt and to find ways to meet the requirement of debt servicing. Shri Tripathy stressed on increasing experts and building up domestic market to reduce the stocks.