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The Memorandum of Understanding between Ministry of Steel and Steel Authority of India Limited signed recently for the current financial year envisages all round growth of steel industry in India. Under Static Efficiency Parameters , SAIL commits to attain a Gross Margin/Gross Block ratio of 24.3 per cent during 2005-06. The company commits to attain a 27.3 per cent net profit/net worth during the year and gross profit / capital employed would be 33.7 per cent. Gross margin of SAIL would be Rs.7000 crores during 2005-06 whereas, gross sales would be Rs. 30760 crores. SAIL commits to attain 17.12 per cent as added value/gross sales ratio during the year. In the MOU, SAIL has committed to achieve sales of 450,000 tonnes of Branded Products. SAIL commits to a total expenditure of Rs. 60 crores on R&D Projects to ensure improvements in productivity and quality of process and product . A capital expenditure of Rs.900 crore could be incurred during the year in the areas of projects.
Production of saleable steel, including production from Alloy Steels Plant, Salem Steel Plant and Visvesvaraya Iron and Steel Plant (excluding IISCO) during 2005-06 will be planned as per market requirement. However, based on the initial assessment of sales potential , the production of saleable steel in the four ISP’s is being planned at 10.63 million tonnes and the production of the special steel plants is being planned at 0.3 million tonnes. With this, the total production of saleable steel by SAIL during 2005-06 is being planned at 10.93 million tonnes. SAIL commits an export of 400,000 tonnes of iron and steel during the period.
BJ:PM
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