STEEL CONSULTATIVE COMMITTEE REVIEWS
PERFORMANCE OF PSUs
Steel Ministry
regularly monitors performance of its Public Sector Units (PSUs)
to ensure fulfillment of MOU targets and improving techno-economic
performance against international benchmarks. The Ministry is
emphasising on cost reduction measures, which contribute to over
all improvement in efficiency and productivity. This has resulted
in improving the financial performance of PSUs by nearly Rs.2000
crore during the year 2002-03, said the Minister of Steel, Shri
Braja Kishore Tripathy, addressing the members of the Consultative
Committee attached to his Ministry that met here today. He said
that the steps taken have kept the management on their toes to
ensure that resources invested in the PSUs are optimally utilised.
Outlining the
performance of the PSUs, the Minister said Rashtriya Ispat Nigam
Ltd.(RINL) has received the Scope Award for excellence for its
remarkable turn around during the last financial year by registering
a net profit of Rs.450 crore. Steel Authority of India Limited
(SAIL) has recorded 23 per cent increase in its turn over and
brought down its net losses from Rs.1707 crore to Rs.304 crore
and is poised for a turn around this year.
Almost all the PSUs
have registered profits and some loss making units like Hindustan
Steelworks Construction Limited (HSCL), MECON Ltd. and The Bird
Group of Companies have reduced their losses substantially. Revival
packages for Bharat Refractories Limited (BRL), MECON & HSCL
are in various stages of implementation and have made significant
progress in separating excess employees under VRS. They are implementing
other restructuring measures. Packages involve conversion of existing
loans into equity, moratorium on repayment of loans and interest
and exemption of payment of guarantee fees.
The Minister apprised
the members of the Committee of the steel industry’s resurgence
in 2002-03 both in the international as well as domestic markets.
India is now the 8th largest steel producer in the
world with a production of nearly 33 million tonnes. It is the
largest producer of sponge iron in the world and produced 6.44
million tonnes during the last financial year. Production, exports
and domestic consumption have also shown growth. Net sales realisation
has gone up with rise in prices of steel items.
The members of
the Committee reminded the industry to be on guard against international
price fluctuations and plan their strategy to achieve the desired
marketing goals during the year. They suggested that Kudremukh
Iron Ore Company Limited (KIOCL), should make alternative arrangements
for its survival. They proposed to strengthen the welfare measures
in the profit making units and take necessary action on priority
to clear the pending dues of the workers. Revival packages should
be strictly monitored, so that the benefits reach the real beneficiaries.
Replying to a query on water supply to Vizag Steel Plant, the
Minister said as water is essential for the plant the Government
of India is giving nearly Rs. 500 crore loan to the State Government
of Andhra Pradesh to expedite the Godavari Pumping Project.
Following Members
of the Parliament attended the meeting : S/Shri Tarachand Sahu,
Tilakdhari Prasad Singh, Manjaylal, Sohan Potai, Shriram Chauhan,
Shibu Soren, Jibon Roy, Gaya Singh and Smt. Hema Gamang.
