Posted on 02 Oct 2012
Mr CS Verma chairman of SAIL said that “I am confident that the slump in the steel sector will bottom out soon. The impact on India has been lesser than that in the West. In 2011, global steel production grew at 6.2%, but between January and July this year, it is down to one per cent.”
He added that during this period, output in India clocked 3.4 per cent growth while real consumption in the first quarter of this financial year grew at 7.8%
In steel, while global prices, both for flat and long steel, have dropped significantly, in India it has not been that bad. This indicates that India cannot remain insulated from the developments in global markets.
With GDP growing at 5.5%, the sector needs to grow at about eight per cent. Real consumption growing at 7.8 per cent is a positive indicator.
Output growth has been affected by lack of availability of raw material and the weakening rupee.
Mr Verma said that we have received the approval of our shareholders to buy-back their shares. It is an enabling provision. There has been no provision in the Articles of Association of our company. So, we have made this provision and got this approved by shareholders. If there is a need or our Board decides, we can buy-back shares.
He added that “We are maximising our production and aiming at better growth. Three out of four coal blocks allotted to us are operational while we are trying to make the fourth functional soon. We are also trying for more coal blocks.”
“We will soon invite expression of interest for selecting mine developers and operators for developing Chiriya mines in Jharkhand, which holds proven reserves of over 1.8 billion tonnes and is among the largest iron ore mines in Asia.”
He further said that “We are planning to invest more than INR 50,000 crore in expanding and modernizing various projects in Jharkhand over the next decade. We will expand our Bokaro Steel Plant, set up new steel, power and urea plants in Sindri and increase mining activities across Jharkhand.”
“We are looking for partners for our plans in Sindri (a sick fertiliser unit that the government has agreed to hand over to Sail). We will convert the 910-bed Bokaro General Hospital into a medical college.”
