SAIL'S STRATEGIC MEASURES TO WEED OUT THE WASTE

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The Steel Authority of India Ltd. (SAIL) of the Ministry of Steel has started disposal of its idle assets since 1998 as an alternative route to generate revenue. Disposal of waste not only generates cash from blocked capital but also helps to improve productivity by clearing shopfloor and other areas leading to more conducive work.

The targets set for 2002-03 in this area are: 10 per cent reduction in inventory, 25 per cent reduction in non-moving inventory, to identify 10 per cent of non-moving inventory as surplus and obsolete and to dispose off 50 per cent out of this.

Written down value of all items are generally available. Otherwise it is worked out by a technical committee in association with finance representatives. A reserve price is evaluated keeping in view the maximum present worth. While fixing the reserve price care is taken to see that the reserve price is not lower than the prevailing market price of scrap of similar quality items.