Earlier, exports consisted mainly of plates, structurals, bars and rods, whereas now apart from semix, hot rolled coils, cold rolled coils, colour coated sheets, GP/ GC sheets, pig iron and sponge iron are also being exported. In future, it is expected that the exports of more value added items will increase.

The Ministry of Steel has set up a Steel Exporters Forum in February 1998 with a view to fulfil the long felt need of the producers and exporters from the iron and steel sector and also to resolve issues, problems and bottlenecks faced by them in exports. The Chairman of the Forum is the Development Commissioner for Iron & Steel and all major steel producers/associations are its members. Representatives of the Ministries of Finance, Railways and Surface Transport are also its members in addition to Ministry of Steel.

Indian steel is exported to China, Japan, USA, Korea, Taiwan, Indonesia, Thailand, Malaysia, Italy, U.K., Germany, Canada, Spain, Australia, etc.

The IXth Plan Working Group for Iron and Steel has estimated that India will have an export potential of 6 million tonnes of steel by 2001-02 and 9 million tonnes by 2006-07. The above projection for export has been made keeping in view the need for projecting export as a distinct market, which need to be developed, of course, after meeting the domestic requirements.

Development Commissioner for Iron & Steel.

After the deregulation of distribution and pricing of iron and steel, the major functions of the Development Commissioner for Iron & Steel are as follows :

Recoverable Reserves of Magnetite (As on 01.04.95)

Production

Production of iron ore (including concentrates) during the year 1998-99 was 70.68 million tonnes as against 73.45 million in the previous year. State-wise production figures indicates that Madhya Pradesh would continue to be the leading iron ore producing State accounting for 23% of the total production during the year, followed by Goa with 22%, Karnataka with 21%, Bihar with 17% and Orissa with16%. The remaining production was from Andhra Pradesh and Maharashtra and Rajasthan.

Despatches

Despatches of iron ore (including concentrates) for 1998-99 was 66.99 million tonnes as against71.41 million tonnes last year. The despatches of iron ore for internal consumption and exports were 38.43 million tonnes and 31.02 million tonnes respectively.

Production and despatches of Iron Ore during the last 5 years was as under:-

Source: IBM (except for exports)

Iron Ore Exports

The exports during the year 1998-99 were at 31.02 (prov.) million tonnes as against 35.26 million tonnes in 1997-98.

Manganese Ore

Reserves

As per the latest inventory the recoverable reserves of manganese ore are estimated at 167 million tonnes . The main reserves found in India are of blast furnace grade. The reserves of ferro manganese grade are very limited i.e. 19.75% of the total reserves only.

Production

Production of manganese ore during 1998-99 is estimated at 1.53 million tonnes as against 1.61 million tonnes in 1997-98. Orissa, Madhya Pradesh, Maharashtra and Karnataka were the principal producing state accounting for 33%, 21%, 21% and 18% respectively in the total production of manganese ore in 1998-99.

Despatches

Despatches of manganese ore during 1998-99 were 1.46 million tonnes of which 1.26 million tonnes were for internal consumption and 0.20 million tonnes for exports.

Production and despatches of manganese ore from 1995-96 to 1998-99 and April,99 to August, 1999 are indicated below :

Exports

Export policy of manganese ore is decided keeping in view the need for conserving high grade ores. Alongwith this, effort is also made to replace the export of ores with export of value added items.

For the year 1999-2000 the maximum ceilings of manganese ore allowed for export are as follows :

Actual export during last two years have been as follows :

 Chromite Ore

Reserve

As per the latest inventory, the total recoverable reserves of chromite are estimated at 86 million tonnes.

Production

Production of Chromite in 1998-99 was 14.04 lakh tonnes as against 15.15 lakh tonnes in 1997-98. Orissa continues to be the chief producing state accounting 99% of the total production.

Despatches

Production and despatches of Chromite during the year 1995-96 to 1999-2000 (April to August,99) are given below :

Exports

Keeping in view the limited reserve of Chromite ore in the country, only certain grades of ore are allowed for export. Emphasis has been laid on export of beneficiated chromite concentrates. From the year 1997-98, a five year Export policy has been decided upon by Government so us to enable the exporters to establish their presence in the international market. The maximum ceilings for export of Chromite ore for 1999-2000 are as follows :

Actual exports during last two years have been as follows :

Ferro Alloys

Introduction

Ferro alloys are essential additives in steel making used for imparting desired properties to steel. The product mix of ferro alloy industry mainly consists of Ferro Manganese (Fe Mn), Ferro Silicon (Fe Si.) and Ferro Chrome (Fe Cr.)- called the Bulk ferro alloys. There is another category of ferro alloys, called Noble ferro alloys, which consists of Ferro Vanadium, Ferro Titanium, Ferro Molybdenum, Ferro Niobium, Ferro Tungsten etc., whose production is negligible.

The production of ferro alloys in India started in early fifties with the industry growing manifold during growing manifold during these four decades. The industry is mainly concentrated in four states viz. Orissa, Maharashtra, Andhra Pradesh and Karnataka for their being rich in the basic raw materials for the production of the ferro alloys.

Capacity and performance of the Industry

There are over 80 large, medium and small sized units including 100% EOUs with export capacity of over 1.4 million tonnes. The Industry has broad banding capacity and this allows the producers enough flexibility to shift from one product to another with relevant ease. It has already made an investment of over Rs. 30,000 million on capital equipments, giving employment to thousands of people directly and indirectly.

Ferro Alloy Industry is a highly power intensive industry and power plays a major role in the production of ferro alloys, constituting 40 to 70% of the cost of production depending on the ferro alloys produced. Average consumption of power per tonne of different bulk ferro alloys ranges from 3100 to 11,000 KWH. Capacity utilisation of the industry is hardly 50 to 55% including export production for the last couple of years. Production of ferro alloys is directly related to the plan of production and growth of the steel industry.

Production of major bulk and noble ferro alloys during last five years is given hereunder :

* Source : Indian Ferro Alloys Producers’ Association, Mumbai.

Export of Ferro Alloys

Industry has been exporting ferro alloys and after initiation of the liberalisation programme, there has been a spurt in export of bulk ferro alloys and showing upward trend. Details of export of ferro alloys for last five years and the percentage of exports over production are given hereunder :

* Source : Indian Ferro Alloys Producers’ Association, Mumbai.

India is already established as a regular exporter of Silico Manganese, Ferro Chrome and Charge Chrome. The industry exports mostly to Indonesia, Korea, Japan, US and Europe. The industry has potential to increase its exports substantially from the present level, as raw materials like ore and reductants are abundantly available in the country.

Coal

Coal is a major raw material for the Iron & Steel Industry which consumes both Coking & Non-Coking coal.

Consumption of Coking Coal

During 1998-99 the consumption of coking coal in SAIL Steel Plants (including IISCO), TISCO and VSP was as under :

 Consumption of Non-Coking Coal

During the year 1998-99, SAIL Steel Plants (including IISCO) consumed 4.197 million tonnes of non-coking coal and TISCO consumed 1.47 million tonnes of coking coal. During 1998-99, VSP consumed 1.72 million tonnes of non-coking coal.

Refractories

Refractories are heat and corrosion resistant materials used in the construction and operation of furnaces in the steel industry. These include the blast furnace, basic oxygen furnace, steel ladles, ladle furnaces and electric arc furnaces, including vacuum degassing units.

In India there are over one hundred refractory manufacturing units accounting for a capital investment of about Rs. 750 crores, annual sales of about Rs. 1200 crores and a work force of approximately 35,000. Many of the refractory units however are in the small-scale sector spread out practically all over India but predominating in Bihar, Gujarat and elsewhere. the large units are mainly concentrated in Bihar, Orissa, Madhya Pradesh, Maharashtra and Tamil Nadu.

The production in the last three year was as follows:

Practically all the units have their testing laborites while the larger units have set up sophisticated R&D facilities. Thus with indigenous R&D as well as technical collaboration with overseas parties the Indian refractory industry is producing the full range of Refractories from the blast furnace and electric arc furnace to the BOF, ladle and tundish including slidegate plates and auxiliaries, continuous casting Refractories and gas purging elements, etc. It is estimated that about 75% of the indigenous production of Refractories are consumed in the steel industry. The balance is used in the cement, non-ferrous metals, glass, petrochemical and such other industries.

Being a feeder industry for the steel sector, the indigenous refractory industry has received a set back in production, sales and profits over the last couple of years or so because the steel industry itself is going through a slump. Progress has been made in exports, which has reached about Rs. 40 crores in 1998-99. The import of refractory items in 1998-99 (April-Nov.,98) was 32460 tonnes at a value of Rs. 15.28 crores.

The industry is engaged in cost control through energy conservation, waste management and development of sophisticated high performance refractories in keeping with the technological changes in the steel and other industries.

Steel Authority of India Limited (Excluding Subsidiaries)

General

Steel Authority of India Ltd. (SAIL) is a Company registered under the Indian Companies Act, 1956 and is an enterprise of the Government of India. It operates and manages five integrated steel plants at Bhilai (Madhya Pradesh), Bokaro (Bihar), Durgapur (West Bengal), Rourkela (Orissa) and Burnpur (West Bengal), a plant of the Indian Iron and Steel Co. Ltd., which is wholly owned subsidiary of SAIL.

SAIL has also four Special and Alloy Steels and Ferro-alloys units at Durgapur (West Bengal), Salem (Tamil Nadu), Chandrapur (Maharashtra) and Bhadravati (Karnataka). The plant at Chandrapur belongs to the Maharashtra Elektrosmelt Limited which is a subsidiary of SAIL. The IISCO-Ujjain Pipe and Foundry Company Ltd., a subsidiary of IISCO, was manufacturing Cast Iron Spun Pipes at its works at Ujjain (Madhya Pradesh), is under liquidation. Besides, SAIL has seven central units viz. the Research and Development Centre for Iron and Steel (RDCIS), the Centre for Engineering and Technology (CET), the Management Training Institute (MTI) all located at Ranchi, Central Coal Supply Organisation located at Dhanbad, Raw Materials Division, Growth Division and Environment Management Division all located at Calcutta. SAIL Consultancy Division (SAILCON) functions from New Delhi. The marketing of products of SAIL plants is done through the Central Marketing Organisation (CMO), Calcutta which has a countrywide distribution network.

Finance

The authorised capital of SAIL is Rs.5000 crores. The paid-up capital of the Company was Rs.4,130.40 crores as on 30th September, 1999 which was held to the extent of 85.82% by the Government of India and the balance 14.18% by the financial institutions / GDR-holders / banks /employees / individuals etc.

Turnover and Profit

The Company recorded the sales turnover of Rs.14993.85 crores in 1998-99. The post-tax net loss for the year 1998-99 was Rs.1573.66 crores. Due to loss, the Company had not declared a dividend for the year ended 31st March, 1999.

The Gross margin (profit before depreciation and interest) and net loss for the half year ended 30th September, 1999 was Rs.371.04 crores and Rs.1347.97 crores respectively. The company recorded a sales turnover of Rs.7145.49 crores during the period. Domestic supplies led to sharp drop in the Net Sales Realisation. This coupled with higher burden of depreciation and interest on the commissioning of major modernisation schemes at Rourkela Steel Plant (RSP) and Bokaro Steel Plant (BSL) affected the bottom line of the Company. The benefits of the modernisation would, however, materialise in phases over a period of time.

With a view to overcome the adverse situation, the Company has undertaken massive cost control and revenue maximisation measures resulting in a saving of about Rs. 902 crores during 1998-99. The cost reduction drive has resulted in increased operational efficiencies, improvements in techno-economic parameters, reduction in arising etc. and lower administrative expenses.

Capital Expenditure

The Company incurred capital expenditure of Rs.1174 crores on Fixed Assets and Capital Work-in-progress in the year 1998-99 and Rs.237 crores during the period April-September, 1999 which have been primarily financed through borrowings from external sources. Capital investment is being restricted to only on-going capital schemes and schemes relating to statutory requirements viz. safety, environment, etc.

Pursuant to order No. 1124 (E) dated 29th December, 1998 issued by Ministry of Law, Justice & Company Affairs, Visvesvaraya Iron & Steel Limited (VISL), a wholly owned subsidiary of SAIL has been dissolved and amalgamated with the Company. The entire business and undertakings of VISL on "as is where is basis" was transferred to and vested in SAIL on and from the appointed date i.e. 29th December, 1998. For accounting purposes, the amalgamation has been given effect with reference to the audited accounts and Balance Sheet of VISL as on 31st March, 1998. This also adversely affected the financial results of the Company for the year 1998-99.

Financial and Business Restructuring

To overcome the adverse business scenario, Company has formulated a Turnaround Plan and identified the areas of intervention and the actions required for ensuring both the long term and short term viability of the Company. A four pronged strategy consisting of Financial Restructuring, Assets Restructuring, Operational improvements and Organisational Improvements has been identified. Based on the IDBI's recommendations and the Turnaround Plan, a proposal prepared by M/s McKinsey for financial and business restructuring has been submitted by the company to the Government of India has been considered and approved. The proposed restructuring will help in mitigation of financial risk by reducing debt/equity ratio and improvement in debt servicing capability and help improve profitability.

Production Performance

The four integrated steel plants of SAIL at Bhilai, Bokaro, Durgapur and Rourkela ended the year 1998-99 with an output of 11.18 million tonnes of hot metal, 9.86 million tonnes of crude steel and 8.33 million tonnes of saleable steel. Alloy and Special Steels Plant produced saleable steel of 275 thousand tonnes.

The details of production plan and achievement for 4 integrated steel plants during 1998-99 are as follows :

(including Alloy and Special Steel Plants)

Production Performance: 1999-2000 (April-Sept 99)

The details of production plan and achievement during 1999-2000 (April-September 1999) was as follows :-

(including Alloy and Special Steel Plants). Production was regulated to match with sales as a matter of policy.

The plant-wise production performance of saleable steel during April-September, 99 is given hereunder

There was continued thrust during 1998-99 on improvement in techno-economic parameters.

Energy Conservation

The continued emphasis on energy conservation measures helped further in reducing energy consumption per tonne of crude steel for the 12th successive year and reached a level of 8.09 G.Cal/tcs during 1998-99. During the period April-September, 1999 energy consumption was 8.08 G.Cal/tcs.

Captive Power Generation

Captive power generation in SAIL during 1998-99 at an average of 464 MW per month, was 3% higher than previous year. Captive power generation during April-September,1999 stood at an average of about 463 MW as compared to 444 MW during April-Sept.98.

Environment Management

During the year 1998-99, one more Pollution Control Action Plan Scheme was completed, bringing the total number of schemes completed to 110. Implementation of these schemes has led to improved performance in respect of compliance with norms for ambient air quality, effluent discharge quality and stack emissions.

A drive was initiated for implementation of Environment Management System (EMS) linked to ISO-14001 at some of SAIL Plants/Mines. Salem Steel Plant has been awarded ISO-14001 certificate by M/s. TUV, an authorised certification agency.

Several training programmes, aimed to sensitize practising managers to meet the environmental requirements of SAIL have been periodically conducted during 1998-99.

SAIL as a responsible corporate citizen took an early initiative to encourage school children to participate in activities related to environmental conservation through formation of Eco-clubs. Sustained efforts to green the SAIL Plants, Mines and Townships with plantation were continued during the year.

Sales and Marketing Performance

Marketing Strategies

During the year, the steel market exhibited definite signs of stagnant demand mainly due to the lower growth in steel intensive segments like heavy machinery, consumer durables and construction and also poor investment in infrastructure sector. Excess availability of steel in the domestic market coupled with cheap inflow of imports particularly of flat products adversely affected the sales realisation of the Company. SAIL had adopted aggressive marketing strategies which included intensified customer contact and feedback system coupled with a customer friendly order booking system and after sale services. The requirements of specific market segments were met through regular improvement in the quality parameters of the new modernised mills at Durgapur, Rourkela and Bokaro. Steel Industry had also taken up the issue of fixation of a floor price against cheap import of HR Coils and the Government of India issued notification on Reference Prices for HR Coils and other flat products in December 1998.

SAIL had marketed 8.97 million tonnes of saleable steel and 0.66 million tonnes of Pig Iron in the domestic and International markets during the year under review. Consequently the Company was successful in depleting around 5 lakhs tonnes of saleable steel inventory. The continuous decline in international prices and economic slow down in the various countries had affected the export of steel during the year. The financial turmoil in South East Asia had forced SAIL to look for other destinations for exports like Europe, Middle East, South Africa and neighbouring countries, in addition to USA and Nepal. In view of this, the company could export only 0.49 million tonnes of steel and pig iron and earned Foreign Exchange of about Rs. 553 crores through exports and other activities.

During the period April-September,1999, the total sales of saleable steel was 4.38 Million Tonnes. In addition 0.36 Million Tonnes of pig iron was also marketed. Export have increased by 78.57% over last year. Cumulative exports from April to Sept.,1999 reached a level of 4.2 lakh T against 2.57 lakh T during the corresponding period last year.

Capital Schemes

The Modernisation schemes at Durgapur, Rourkela and Bokaro Steel Plants started yielding results during the year. Durgapur Steel Plant after modernisation, has reached 83 per cent of its rated capacity and the techno-economic parameters like energy consumption, coke rate, yield, etc. have shown improvements.

Rourkela Steel Plant Modernisation was completed in August, 1998 except Reheating Furnace No.5 of Hot Strip Mill which is expected to be completed by March, 2000. After completion of the modernisation, improvement in production has been achieved in all the units and the major modernised units have achieved around 70 per cent of the capacity utilisation and at times have exceeded the rated capacity. 100 per cent of the steel produced in the plant is now through Basic Oxygen Furnaces- Continuous Casting route.

At Bokaro Steel Plant, modernisation project, major facilities have been completed except for Reheating Furnace No.3 and fourth Coiler, which are in advanced stage of completion. After the completion of modernisation, there has been a considerable improvement in the quality of the finished products.

The Coal Dust Injection facilities at Bhilai and Bokaro Steel Plants were introduced at Blast Furnace-6 and 4 respectively during the year.

The Installation of Sinter Plant-3 at Bhilai Steel Plant is in advanced stage of construction and is likely to be completed by July 2000.

• Technology upgradation for production of Cold Rolled Non- grain Oriented (CRNO) steel grades at RSP through Continuos Casting route.
• Introduction of slag splashing technology in converters at BSL, DSP and RSP have resulted in substantial increase in lining life.
• Development and introduction of innovative burner designs and heating systems at BSP, RSP and VISL.

The Centre has filed 3 foreign and 42 Indian patents in 1998-99. During the year 2 Patents which were filed earlier have been sealed by the Patent Office. The centre also filed 15 copyright proposals. In addition, RDCIS undertook contract research work, provided significant consultancy services and know-how to organisations outside SAIL yielding external earning of Rs. 116 lakhs.

During the year 8 prestigious national awards were bagged by the employees of RDCIS.

Raw Materials

The Company met entire requirement of its iron ore and half of fluxes requirements from captive sources. SAIL Captive Mines produced 20.01 Million Tonnes of Iron Ore Lumps and Fines during 1998-99 and 8.82 Tonnes during the period April - September 99. Fluxes production was 2.75 Million Tonnes in 1998-99 and 1.17 Million Tonnes during the period April-September 1999.

In-House Engineering

Centre for Engineering & Technology (CET) has been providing its services in the areas of modernisation, technological upgradation and additions, modifications and replacement schemes to plants and units within SAIL and clients outside SAIL - both in India and abroad.

Some of the major projects implemented during 1998-99 with in-house consultancy services include Coal Dust Injection System in BF-6 of Bhilai Steel Plant and BF-4 of Bokaro Steel Plant, Installation of Re-heating Furnace No.6 in the Hot Strip Mill, Ladle Furnace and Slab Casting Shop-I at RSP and On-line Ultrasonic Testing of Rails at BSP.

Besides the above, Sinter Plant No.3 (raw materials handling package) of BSP, Rebuilding of Coke Oven Battery No.3 of BSL and Rebuilding of Coke Oven Battery No.5 at RSP are some of the major projects under implementation with in-house service.

Human Resources Management Review

SAIL continued its efforts to maximise the contribution of the human resources in attainment of organisational goals. The thrust was on effective utilisation through concerted team working.

Manpower Utilisation

The manpower strength as on 31.3.99 and 30.9.99 was 1,74,736 (comprising 18,249 executives and 1,56,487 non-executives) and 1,70,972 (comprising of 18428 executives and 152544 non-executives) respectively. The manpower productivity was 95 tonnes crude steel per man year during 1998-99 and 90 tonnes during April-September,1999. As a consequence to the Government's decision, the retirement age for employees has been increased from 58 to 60 years with effect from 29th May, 1998. As a result no natural separations occurred during the period. A Voluntary Retirement Scheme based on a system of deferred payment was introduced by the company. About 6000 persons separated under the scheme.

Training

Training for developing the competencies of employees based on organisational requirements continued. During 1998-99, 77,228 employees were trained under on-going company-wide schemes. During April-September,1999, 39138 employees were trained.

Employees' Welfare

Various welfare measures for the benefits of the employees, like free medical services (including extending medi-claim schemes to retired employees), housing, education for children, facilities of co-operative societies as well as providing avenues for socio-cultural activities were undertaken. On this account, the Company spent an amount of Rs.439.29 crores during 1998-99 and Rs.220.25 crores during April-September,1999.

Sports

In line with sports policy of the Company efforts and investments in youth sports were intensified further during the year. "Catch them young" particularly at SAIL Plants through top coaches was the main theme. Indian Handball youth team from Bhilai reached Finals of the tournaments. Under-14 Subroto Cup was lifted by SAIL Bokaro Academy and SAIL Hockey team was declared most promising team of Jawahar Lal Nehru Hockey during the year. SAIL sponsored sports persons rose to remarkable performance levels. Subroto Cup soccer was sponsored and won by SAIL during the year. More than two dozens of SAIL youths from its townships were amongst National Medal winners in different disciplines of Sports. Pursuit of excellence in youth sports is now a way of life at SAIL.

Industrial Relations

A conducive and congenial work environment was maintained through the support and co-operation of the trade unions and officers association.

Safety

Preventive measures for averting accidents at work sites received top most priority in the Safety Management Programme of the Company. Steps initiated to enhance safety performance in Steel Plants included system of internal benchmarking, guidelines to line Managers for their responsibilities towards safety, spread of 5-Star Safety & Health Management System, development of Standards on Safety Procedures for hazardous jobs, inclusion of safety measures in Standard Operating Practices (SOPs) & Standard Maintenance Practices (SMPs) with a view to integrate safety with work processes and realistic assessment of cost of accident. Award for "Best Safety Man of the year" was introduced under Ispat Suraksha Puraskar in addition to existing awards under various competitions organized for motivating employees towards safety.

Official Language Policy

The company continued its efforts in the implementation of Official Language Policy of the Government of India. Emphasis was given to create an environment in which employees voluntarily adopt Hindi in their office work. SAIL's quarterly journal on Official Language "ISPAT BHASHA BHARTI" received wide acclaim from all quarters. Raw Materials Division, Calcutta, Central Marketing Organisation, Chennai and Bokaro Steel Plant were awarded prizes by the Deptt. of Official Language, Ministry of Home Affairs for noteworthy implementation of Hindi.

Scheduled Castes and Scheduled Tribes

The Presidential Directives on Scheduled Castes/Scheduled Tribes continued to be implemented during the year. As on 31.12.98 Scheduled Caste and Scheduled Tribe employees were 15 per cent and 11.13 per cent respectively of the total manpower.

Peripheral Development

SAIL has been playing an active role in undertaking various measures like providing drinking water facilities, health care programmes, educational facilities, recreational activities, etc. for the people living in areas near the steel plants/mines. A sum of Rs. 218 lakhs was spent on peripheral development during 1998-99 and Rs. 61 lakhs (Prov.) during April-September, 1999.

Awards

A team of four employees from BSP was selected for the Prime Minister's Shram Ratna Award during the year. This is the second time since its inception, this highest award has been bagged by a SAIL team. In addition one employee from BSL and one employee from VISL have been selected for Shram Vir and Shram Shree Award respectively during the year.

Total Quality Process

SAIL continued its efforts in implementing ISO 9000 standards in its plants/units. During the year, Blast Furnaces and Hot Strip Mill of RSP, Coke Ovens and Blast Furnaces of BSP, Hot Rolled Coil Finishing Lines (HRCF) and Cold Rolling Mill-1 of Bokaro, Kakinada Port of CMO and SAIL Consultancy Division (SAILCON) have achieved ISO 9002 Certification.

Subsidiaries

The Indian Iron and Steel Company Limited

The Indian Iron and Steel Company Limited(IISCO) owns and operates an integrated steel plant at Burnpur, captive iron ore mines at Gua and Manoharpur, captive collieries at Chasnalla, Jitpur and Ramnagore, a coal washery at Chasnalla and a large foundry complex at Kulti. The management of IISCO was taken over by the Government of India on the 14th July, 1972. Shares held by the private parties were acquired by the Central Government on 17th July, 1976. The shares held by the public financial institutions etc. were also purchased by the Central Government and subsequently all these shares were transferred to SAIL. IISCO became a wholly owned subsidiary of SAIL on 30th March, 1979.

Production Performance

Burnpur Works

During 1998-99 the Steel Plant produced 737.9 thousand tonnes of Hot Metal, 375.1 thousand tonnes of Pig Iron, 301.02 thousand tonnes of Crude Steel and 285.1 thousand tonnes of Saleable Steel.

Production Performance (Burnpur): 1998-99

Production Performance(Burnpur)-April-September, 1999

Total Castings output during 1998-99 and April-September, 1999 was 23.7 thousand tonnes and 9.6 thousand tonnes respectively. Spun Pipes production was 31.9 thousand tonnes and 18.2 thousand tonnes during 1998-99 and April-September, 1999 respectively.

Special emphasis was given for production of items required by Burnpur Works and other units of SAIL.

Collieries

Total coal raisings from three Captive Collieries was 834.9 thousand tonnes during 1998-99

Ores Mines

Iron Ore Lump production was 1029.6 thousand tonnes during 1998-99 from two Captive Ore Mines.

Capital Schemes

Burnpur Works

During the year 1998-99 the Company incurred capital expenditure of Rs. 34.24 crores on fixed assets on various capital schemes including additions, modifications and replacements. Financial constraints have affected the progress of ongoing schemes and no major new schemes were taken-up during the period. A scheme for installation of a new clarifier for the B.O.D. Plant of No.8 Coke Oven Battery has been taken up.

Kulti Works

At Kulti Works Two Gas Cleaning Plants for Cupolas of L.C.D. and S.S.P. -III have been installed during 1998-99. Fifth Spinning machine has been successfully commissioned in S.P.P.-II by shifting one small dia machine from S.P.P.-I.

Financial Performance

During 1998-99 the Company achieved a turnover of Rs.910.64 crores. The net loss for the year after charging depreciation (Rs.25.41 crores) and interest (Rs.193.69 crores) was Rs.357.24 crores. The net realisation has been adversely affected due to continued sluggish market coupled with steep competition for domestic producers and availability of imported materials at cheaper prices.

Company achieved sales turnover of Rs. 442.05 crores during April-September, 1999. During this period Company incurred net loss of Rs. 183.60 crores.

The Company is in arrears in repayment of loans (including interest) to Financial Institutions amounting to Rs.75.29 crores as on 31.3.99. The repayment of loan to OECF SAIL and Govt. of India were also due as on 31.3.99 pending outcome of the revival package pending with Govt. of India/BIFR.

As on 31st March, 1999, the Authorised Share Capital and Paid-up Equity Capital of the Company remained at Rs.550 Crores and Rs.387.67 Crores respectively.

Sales & Marketing Performance Domestic Sales

Despite adverse market situation, during 1998-99 sales of 290.7 thousand tonnes of Steel (previous year 293.1 thousand tonnes) was achieved. Sales of Pig Iron were 294.5 thousand tonnes (previous year 298.0 thousand tonnes).

During April-September,1999 105.6 thousand tonnes of saleable steel and 197.3 thousand tonnes of pig iron were sold.

Exports

Export of steel materials during 1998-99 was 2795 MT to Nepal and export of Pig Iron of 1058 MT tonnes was to Bangladesh.

Environment Management

Environment Management and Pollution Control continues to be the priority areas in the activities of the Company. Environment Awareness Campaign through observance of World Environment Day and Environment Month was organised.

About 8800 sapling of different plants were planted in Burnpur Township and Works area.

Water consumption per tonne of crude steel was further reduced from 13.06 m3/t in 1997-98 to 12.72 m3/t in 1998-99. All the Gas Cleaning Plants are working efficiently.

Dust extraction systems at LC Department and Supn Pipe Plant No.3 at Kulti Works have been commissioned, Consent for air emission and effluent discharge has been received from West Bengal Pollution Control Board. Blast Furnace Slag has been used for road construction as per waste utilisation programme.

Human Resources Development

The Company continued to give great importance to the development of its human resources to improve efficiency and productivity.

The manpower strength as on 31st March, 1999 and 30th September 1999, was 26,068 (comprising 1255 executives and 24,813 non-executives) and 25,467 (comprising 1233 executives and 24,234 non-executives) respectively.

During 1998-99 a sum of Rs. 10 crores was received from National Renewal Fund for implementation of Voluntary Retirement Scheme and 237 employees were allowed voluntary retirement. A scheme of Voluntary Separation was also introduced for contract labourers w.e.f. 18.3.99. 96 contract labourers are separated through voluntary separation scheme funded by the Company upto 31.3.99.

Industrial relations remained normal and peaceful during the year 1999-2000

The thrust towards Safety and Occupational Health continued. 195 bi-partite meeting on safety were held. About 6876 employees and 2176 contract labourers were trained on various safety aspects during 1998-99.

Scheduled Caste and Scheduled Tribe employees were 11.63 per cent and 2.90 per cent respectively of the total manpower as on 31.3.1999.

Welfare Measures

Company undertook various welfare measure like maintenance of houses, education for children, medical facilities, socio-cultural activities and other facilities and spent Rs.40.87 crores during the year.

Official Language Policy

The Company continued to pursue vigorously implementation of the Official Language Policy of the Government. Employees are encouraged to carry out their official work in Hindi and liberal incentives for such work are given. Official Language Fortnight Celebrations and workshops & Seminars on technical writing in Hindi were organised during the year. Rajbhasha Shields, cash prizes and certificates were awarded in the various competitions to encourage the employees. Regular inspections were carried out and departmental competition and workshops were also organised.

IISCO Ujjain Pipe & Foundary Co. Ltd.

IISCO-Ujjain Pipe & Foundary Company Limited, a wholly owned subsidiary of IISCO, is a sick company and its production has been suspended since 27th January, 1993. The Hon'ble High Court of Calcutta at its hearing on 10th July, 1997, directed that the company be wound up. The Official Liquidator has taken over the possession of the assets of the Company. However, the Hon'ble High Court vide order dated 29th April, 1999, recalled its earlier order of winding up and BIFR has been directed to consider a fresh Scheme of Rehabilitation of IISCO-Ujjain. IISCO has filed an appeal before the Divisional Bench of Calcutta High Court against the order dated 29th April, 1999 for revival of the Company. Present status is that IISCO Ujjain is still under the Official Liquidator. This is as per subsequent order of Hon'ble Calcutta High Court order dated 15.6.1999.

Maharashtra Elektrosmelt Ltd.

Maharashtra Elektrosmelt Limited is a subsidiary of SAIL situated in Chandrapur, Maharashtra and is a major producer of Ferro Manganese and Silico Manganese. It is also diversifying into other ferro alloys.

Financial Performance

During 1998-99, the Company achieved turnover of Rs.157.95 crores. Due to increase in power tariff, raw material cost and sluggish market conditions, the company could not be able to sell its products at a remunerative prices. As such company ended with a net loss of Rs. 11.07 crores. The turnover and Net loss of the Company during April-September, 1999 was Rs. 83.18 crores and Rs. 16.79 crores respectively.

The Authorised Share Capital of the Company is Rs.20 crores and Subscribed and Paid-up Capital is Rs.10 crores. SAIL's holding is approx. 98 percent of the paid-up capital.

Production Performance

The production of all grades of Ferro Alloys during 1998-99 was as under:

Production performance: 1999-2000 (April-September)

Research & Development

Studies were carried out for reduction in energy consumption by installation of Split Burner in SP-I, optimisation of Mn ore/flux sizes for improved performance of SAF for SiMn production and introduction of SAF gas fired combustion system for heating of tamping paste.

For improvement in charging system in SP-I to improve the sinter yield, studies are being carried out.

Environment

Environment Management and pollution control continued to get top priority in Company's activities during the year. To keep environment clean for ecological protection, thrust was given in the areas of green belt development in and around the plant premises, solid waste management, monitoring of liquid and air effluent for various environmental parameters. In and around the Plant 1000 teak and other saplings were planted in addition to the regular maintenance of existing 13000 teak plants.

To comply with environmental standards set up by Maharashtra Pollution Control Board (MPCB), Gas Cleaning Plant for SAF-II costing around Rs. 1.6 crores has been installed. This would also enhance the availability of clean gas for gainful utilisation as a fuel to Sintering Plant, Lime-Kiln and Gas based Captive Power Plant of 4.2 MW capacity.

Continuous steps were taken towards gainful utilisation of High MnO Slag in SiMn Production, Lumpy SiMn Slag as rail ballast and Granulated Slag as stowing material in WCL mines and Sale of SiMn Slag for road construction and repairs, dedusting system in Sintering Plant and Pelletization of GCP of sludge.

Sales & Marketing Performance

In order to meet the challenges arising out of the new economic policies and further liberalisation in import, measures were taken by the Company to find markets outside SAIL under the policy framed "Strategy for Managing Change".

The sale of different grades of Ferro Alloys during the year was 83236 tonnes as compared to 91423 tonnes in the previous year.

Though there was severe competition and excess supply in the Ferro Alloys market, continuous efforts were made by the Company to sell its products to various customers and also finding new customers for disposal of its products.

Human Resources Management Review

The manpower strength as on 31.3.99 and 30.9.99 were 1028 (152 executives and 876 non-executives) and 1024 ( 152 executives and 872 non-executives), respectively.

The number of Scheduled Castes and Scheduled Tribes employees as on 31.3.99 were 137 and 49 respectively.

The industrial relations throughout the year remained normal.

A total of 538 employees were trained during 1998-99.

Total Quality and Industrial Safety

After achieving ISO-9002 Certificate way back in August, 1996, MEL has successfully maintained Quality Assurance System in the Organisation during the last three years. This has been verified by the Certifying Body M/s. LRQA, Mumbai, through five surveillance Audit and also by SAIL Plants Auditors through periodical Interplant Audits. The revised documental system has been implemented and functions are being performed for achieving better results for further Organisational development. The Quality System of MEL is now due for re-certification in August'99

During the year under review in Industrial Safety the Company was bestowed with National Safety Award from British Safety Council, London, Steel Minister's Trophy for Best Safety performance for the year 1997, SAIL Chairman's Silver Plaque for No Fatal Accident during the year 1997.

 Rashtriya Ispat Nigam Ltd. (Visakhapatnam Steel Plant)

Introduction:

Visakhapatnam Steel Plant (VSP) is the newest Plant in the Public Sector and has the most modern technology amongst all. This is the 6^th Integrated Steel Plant in the Public Sector and has a reputation for quality of its products. Being based on shore, it has a locational advantage and an excellent work force. It is also the first Steel Plant amongst the PSUs which has 100% Continuous Casting. It has attained high levels of growth in production and superior technological norms within a short period of time. It has a record of high labour productivity, efficiency and positive work culture. VSP has emerged as a good corporate citizen and has contributed its mite for the development of the region. VSP has established its presence in domestic and international markets due to superior quality of its products. All its major units have received ISO 9002 certification. It hopes to get total certification within the first half year of 2000.

Production Performance:

The production for the year 1998-99 and 1999-2000(Apr-Sept99) is given below: