AndhraNews.Net - Legitimate interest of Steel Consumer Sector will be protected

New Delhi: September 2, 2003

the recent weeks, domestic as well as International steel prices have firmed up to an extent that the merchant producers and end consumers have expressed concern about the continued viability of the small and medium industries consuming steel products. The Steel Minister Shri Braja Kishore Tripathy has appealed all concerned to take steps to protect the legitimate interests of the affected consumer sector. The Minister said this while addressing the Consultative Committee of the Steel Ministry here today. In the recent Consumer Council Meeting held at Ludhiana, the end users had expressed their deep concern in this regard and the Minister has asked the industry to address the domestic needs on priority basis. He stressed on adequate supply and easy availability of raw materials which will go a long way in stabilising prices. He asked the public sector units to avoid frequent and interim price increase and to follow a transparent policy in this regard. He said the new steel policy which is going to be finalised soon would take care of the needs of small and medium industries as well as the consumer sector.

Shri Tripathy said that the public sector Steel Authority of India Ltd. (SAIL) has already put into operation an ambitious programme of modernisation, financial restructuring and manpower rationalisation in active collaboration with the Government. Such rationalisation exercises along with other measures of productivity improvement and cost economy have brought about a huge improvement in the profitability of SAIL which recorded the highest ever Q-I profit of Rs. 255 crore during this fiscal. The company has also improved its turnover during the quarter by almost 14 per cent to Rs. 4765 crore as against the corresponding period last year despite an overall decline in International steel prices during the period. It has also fared well on the export front. With a target for export of 10 lakh tonnes of steel in the full year, SAIL has already exported 33 lakh tonnes in the first quarter alone marking a growth of 162 per cent in exports over the corresponding period last year. The company is poised to make a turnaround this year.

The members of the Parliament praised the Steel Ministry and SAIL authorities for their endeavour to bring up the Company to stage a turn around. They were happy that the Prime Minister in his reply to the no confidence motion and in the other forums has praised SAIL's achievements. They pleaded that while allowing VRS, the best performing staff in the public sector steel units should not be separated. The people who have worked for the organisations for pretty long period should be honourably separated. They said that the SAIL has no room for complacency as the global market is very volatile. They advised further modernisation and adoption of new technologies to produce quality and cost effective products. They stressed on expediting the revival of the ailing units. They suggested that the SAIL should have a think tank for creating domestic market in all corners of India and a more effective recruitment policy to tap the best talents. The company should also develop the amenities for the employees to create a healthy work atmosphere.

Replying to the queries raised by the members the Minister said SAIL has taken all possible steps to improve production, productivity and sales and is confident to sustain its progress achieved during these two years. It is now able to meet the full requirement of the Railways. Durgapur Plant after twenty years has made profit. Rourkela Plant has cut its losses and at the end of the year may turn around. SAIL would invest about Rs.5000 crore from its internal resources for the technology upgradation during the 10th Plan. The Blast Furnace at Rourkela is being upgraded. The new Rail Mill at Bhilai would be ready by the beginning of the next year to produce 72 m long rails and then go for 120 m long rails.

The following member of the Parliament were present:

S/Shri Tarachand Sahu, Sunil Khan, K.Yerrennaidu, Tilakdhari Prasad Singh, Lal Muni Chaubey, Manoj Sinha, Manjaylal, Shriram Chauhan, Jibon Roy, Gaya Singh, Dwijendra Nath Sharma and Smt. Hema Gamang.

Press Release by: PIB/DS:RS

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