SAIL TO SAVE RS.700 CRORE IN
2002-03
The Steel Authority of India Ltd.(SAIL) has hiked
its target of savings during the yeear 2002-03 to Rs.700 crore
from the earlier plan of Rs.520 crore. The decision to this effect
was taken in a workshop held recently at Ranchi. The company achieved
a cost savings of over Rs.450 crore in the last financial year.
During 2002-03, the major savings of the PSU
would come from reduction in coal usage, and power consumption.
This may fetch Rs.350 crore and another Rs.60 crore will be saved
from lower consumption of hot metal for production of crude steel.
Procurement of materials through reverse auction using e-commerce
facilities, which was started last year, will be given a further
boost during the current year. Areas for savings in expenses towards
administrative cost and township maintenance were also identified.
The special cost -cutting drive undertaken by
SAIL during the last five years has so far yielded a total saving
of over Rs.3,400 crore, which helped to partially neutralise the
Rs.3,410 crore impact of input cost rise on SAIL's profitability
since 1996-97. As a result, SAIL has been able to contain its
variable cost of production of saleable steel at the 1996-97 level.
