The Steel Authority of India Ltd.(SAIL), a public sector undertaking
of the Steel Ministry launched a special drive for savings through
cost reduction and has achieved a savings of over Rs.1500 crore
during last three years. The cost reduction has helped SAIL to
neutralize the increase of critical inputs like coal, power, railway
freights etc.
SAIL could manage to lower its borrowing by about Rs.7000 crore
during the last three years. This was achieved by strict cash
control management, reduction in expenditure in various areas,
waiver of SDF loan and Government guarantee for repayment of the
loan.
By better cash management, higher interest loan was brought down
with lower interest loan. About Rs.1100 crore was generated with
the divestment of captive power plants at BSP, RSP and BSL and
the leasing of surplus houses in the townships. Efforts are being
made to divest/close its other non-core and non-viable units.
