Monday, March 19, 2018

Parliamentary panel asks SAIL to prepare complete action plan for modernisation: Report

A PARLIAMENTARY panel has asked SAIL to come out an action plan for completing the expansion of projects within a stipulated time frame.
"SAIL should work out a concrete action plan to complete all the targeted modernisation and expansion plan of various plants within a stipulated timeframe," Standing Committee on Coal and Steel, chaired by Rakesh Singh, said in its report tabled in Parliament last week.
It also asked the state-owned steel giant to apprise...
the committee in case of any revised cost-overruns.
The committee said Internal and Extra Budgetary Resources (IEBR) for SAIL for 2018-19 are earmarked at Rs 4,000 crore and major portion of this outlay is towards likely payments for modernisation and expansion plan of SAIL plants/units for post completion contractual liability. The committee was particularly unhappy over delays in Bhilai steel plant modernisation.
It said: "The committee is unhappy to note the delay in implementation of modernisation and expansion of Bhilai Steel plant which was originally to be completed in March, 2013 at a cost of Rs 17,265 crore."
The plant is now anticipated to be completed by February, 2018 which primarily is due to poor performance of contractors, it said.
SAIL had earlier said it reached the last leg of its Rs 70,000-crore modernisation programme.
SAIL has undertaken the modernisation and expansion of its integrated steel plants at Bhilai, Bokaro, Rourkela, Durgapur and Burnpur and special steel plant at Salem.
In the ongoing modernisation and expansion, the crude steel capacity is being enhanced from about 14 million tonnes per annum (MTPA) to 21.4 MTPA.
SAIL is looking to ramp up its production after achieving 9 per cent growth in crude steel production to 1.272 million tonnes in February over the corresponding period last year.
Reviewing the performance for the month of February 2018, SAIL Chairman PK Singh emphasised on winding up the few remaining projects under modernisation and ramping up production from the new units, a statement said.
He exhorts for rapid ramping up of production and targets a higher output in March. The steel giant is eyeing steel production target of 21 million tonnes by 2020-21.
"The company will produce to potential and not just name plate capacity. It will achieve the target of 21 million tonnes (MT) by FY21," its chairman P K Singh said.
According to the PSU's annual report for 2016-17, SAIL produced 14.496 MT of crude steel during the said financial year.

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