January 30, 2002

'18'

    Kudremukh Iron Ore Company Limited (KIOCL), a miniratna public sector undertaking of the Ministry of Steel, during April-December, 2001 has achieved a gross turnover of Rs. 105 crore and a net profit of Rs. 53 crore. The financial performance of the company has exceeded the MOU target for excellent rating despite delay in communication of the renewal of lease and stoppage of the plant for maintenance in July and August. This was informed by the CMD of KIOCL Shri S. Murari in a performance review meeting taken by the Steel Minister, Shri B.K. Tripathy here today.

    Shri S. Murari said that stoppage of the plant has hampered the physical performance resulting in shortfall in production of both iron ore concentrate and Iron oxide pellets. The Minister asked the company to strive to make up the shortfall in the last quarter of the fiscal. Shri Tripathy asked the CMD to pursue the case of extension of lease for twenty years at the State Government level. The Minister was informed that the case is in the Supreme Court and is slated for hearing in February 4, 2002.

    The company, in spite of uncertainties of extension of lease, had record production of pellets in June and July, 2001. The shipment of 3,60,361 tonnes of pellets in June 2001, and 3,46,089 tonnes in August, 2001 was the highest ever performance for those months since inception. Its captive power plant produced 6, 48,000 MW of power on August 30, 2001, a record one day’s production since its inception.

    Shri Tripathy noted the new initiatives, the company is planning for expanding its markets overseas. He asked the company to devise appropriate strategies to keep up the tempo of the production and sale and further improve its performance in all crucial areas to face the new challenges of the industry.