Production
of sponge iron in India has increased mainly because of expansion
of coal based units. The share of coal based sponge iron technology
globally is only 8.4 per cent while it is 44 per cent in India.
At present there are 72 sponge iron units in Orissa, West Bengal,
Jharkhand and Chhatisgarh. Another 13 units are under construction
in these States and 62 units in the planning stage. Within next
2 years the annual capacity of coal based units in India is likely
to touch a level of around 6.5 million tonnes.
During the year 2001-02
Sponge Iron India Limited (SIIL) recorded a sales turnover of
Rs. 35 crore which is highest since inception. Its capacity utilisation
was an all time high at 107.5 per cent. During the first half
of this fiscal SIIL exceeded its rated capacity in production,
power generation and sale and poised to fulfill its targets. The
target of gross margin of the company has been raised to Rs. 671
lakh from the original target of Rs.591 lakh. Similarly the cash
profit target has been revised to Rs. 615 lakh from Rs. 535 lakh
and net profit raised to Rs. 301 lakh from Rs. 220 lakh.
