SteelMin pulls up SAIL, RINL for unsatisfactory performance

Steel minister Beni Prasad Verma on Monday pulled up the two steel PSUs — Steel Authority of India (SAIL) and Rashtriya Ispat Nigam Limited (RINL) — for their poor performances.

"Though the RINL is better than SAIL, I am not satisfied with the performances of both companies. Their modernisation and expansion plans are delayed. They would have been able to fare better had they completed their expansion on time," the minister said .

RINL is planning to expand its production capacity to 6.3 million tonne per annum (mtpa) from 3 mtpa this year. The plan got delayed after a blast at its plant in June in which around 19 people were killed. RINL chairman A P Choudhary said, "We will complete it (expansion) plan by the end of this year. After the incident (blast), we are going little slow but most of the work is complete."

RINL posted growth in hot metal, liquid steel and value added steel production during April-September but it registered a ''marginal shortfall in the saleable steel production'' due to acute power crisis and heavy rainfall in AP.

The company is expecting to get an iron ore mine in Rajasthan's Bhilwara, having reserves of 320 MT, in next few days. It was also planning an initial public offer (IPO), which, Verma said, had been deferred indefinitely. ''The Book Running Lead Managers' proposed price was below the book value of RINL. So it (IPO) has been deferred indefinitely," he said.

The steel ministry is shortly going to review SAIL's performance as well. SAIL too is undergoing an expansion plan worth R72,000 crore to increase its capacity to 24 mtpa. Though, the company hopes to complete all schemes by the first half of next year, the minister said, "I do not agree that their plans are on right track. Their modernisation plans are very much delayed."

ALSO READ

Soon, you can click and switch your LPG dealer

TV viewing to be ad-free

Job seekers throng employment exchanges as economy sputters

Oil companies under-recovery from diesel dips to lowest in 2 yrs