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English Release 30-July 2014
Date 30 Month July Year 2014
President's Secretariat
The Rashtrapati Bhavan Museum will open for
public viewing from August 1, 2014
Prime Minister's Office
Sikkim Governor calls on PM
Full text of PM's address at 86th ICAR
Foundation Day
Min of Commerce & Industry
Subsidy Given to Agri Exporters
Grant of Infrastructure Status to Hotel Industry
No Increase in Import Duty on Apple
Relaxation of Conditions for FDI in Different
Sectors
Effect of Fall in Prices of Natural Rubber
Jobs Created Through Manufacturing Units
Production of Fine Quality Tea in Uttarakhand
US Opposition to Section 3(D) of the Indian
Patent Act
Min of Earth Science
Doppler Weather Radars
Impact of Abnormal Weather Condition
COMAPS
Min of Labour & Employment
Welfare of Industrial Workers
Interest Rate on EPF
Min of Mines
Geological Survey of India
Development of Mining Areas
Mining of Iron Ore in Maharashtra
Min of Personnel, Public Grievances &
Pensions
ACC Appointments
Min of Petroleum & Natural Gas
Global crude oil price of Indian Basket increased
to US$ 106.34 per bbl on 29.07.2014
Min of Statistics & Programme
Implementation
Provisional Results of Sixth Economic Census
Min of Steel
Iron-Ore Supplied by NMDC
Review of Safety and Security of Steel Plants
Min of Urban Development
Previous Date
Ministry of Steel
Sail Works on Vision 2020 to Achieve 60 Million
Tonnes of Steel Production

Backgrounder


Steel Authority of India Ltd. (SAIL) is a
Maharatna Public Sector Undertaking (PSU) under
the Ministry of Steel and is one of the biggest steel
manufacturers in the country. SAIL is in the process
of implementing unprecedented modernisation &
expansion programme to enhance its annual hot
metal production capacity from present 13.8
million tonnes to about 24 million tonnes by the
year 2012-13. For the first time, the company has
undertaken modernization & expansion plan at this
scale simultaneously at all the plants/units. The
growth plan, besides targeting higher production,
also addresses the need for eliminating
technological obsolescence, achieving higher
energy savings, enriching product-mix, reducing
pollution, developing mines & collieries,
introducing customer centric processes and
developing matching infrastructure facilities.
Orders for over Rs. 52,000 crores have already
been placed under this modernisation & expansion
plan.

SAIL has set the ball rolling for the company to
work on Vision 2020 for the company. Keeping in
line the estimated requirement of steel in the
country and the potential SAIL has, action plan is
underway for achieving 60 million tonnes
production by 2020, which would be approximately
30% of the Indian Steel industry market share.

Towards this direction, SAIL has carried out an
assessment of the ultimate potential of our plants at
the existing locations. The cumulative production of
steel at these locations would range 47- 48 million
tones. The remaining 12-13 million tones would be
in the form of greenfield investments in the new
locations a part of which will be outside India.
While stressing upon SAILs future plans, scaling
up production of steel to such a high level will open
a number of opportunities for business
diversification. SAIL is contemplating to diversify
into areas where synergy exists or which are related
to core strength of the company. This diversified
portfolio will have an added advantage of de-risking
All Ministries
01-February, 2012 14:47
IST
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the business from the fluctuations in steel business
cycle, besides optimizing opportunities in related
business areas.

To improve operational efficiency of steel units
and to achieve synergy, a number of mergers /
acquisitions / strategic alliances / Joint Ventures
have taken place. Details of which are under:




Merger & Acquisition (M&A)s

Merger of Maharashtra Elecktosmelt
Limited (MEL) with Steel Authority of India
Limited (SAIL): Maharashtra Elektrosmelt Ltd
(MEL), the 99.12% subsidiary of Maharatna
Steel Authority of India Limited (SAIL), has
been merged with SAIL. The process of merger
of MEL with SAIL culminated with the receipt
of the final order from the Ministry of
Corporate Affairs in June last year. It has been
renamed as Chandrapur Ferro-Alloys Plant.

Transfer of Salem Refractory Unit of
Burn Standard Company Limited: The Salem
Refractory Unit of Burn Standard Company
Limited (BSCL) has been transferred to the
newly formed subsidiary of SAIL, namely SAIL
Refractory Company Limited (SRCL) in
December last year. The process of transfer
was initiated on 10th June, 2010, when the
Cabinet Committee on Economic Affairs
(CCEA) approved the financial restructuring of
BSCL, and also authorized the Department of
Heavy Industries and Ministry of Steel to work
out operational steps for the transfer.

SAIL has formally acquired 50% of the
shares of Steel Complex Limited (SCL) in
Kozhikode held by the Government of Kerala
(GoK) and taken over the operations of SCL.
SAIL-SCL Limited, the joint venture company
resulting from the acquisition, is working
towards the revival of SCL. The JV is in line
with the governments policy of bringing
together synergies of PSUs and strengthening
them to be competitive in the market.

Strategic Alliances

In order to meet future challenges, SAIL is
working on a long-term strategic plan 'Strategy
2020', "which will steer the company towards
meeting its strategic objectives of achieving
profitability through growth and customer
satisfaction. Scaling up production of steel to such
a high level will open a number of opportunities for
business diversification. SAIL is therefore
contemplating to diversify into areas where synergy
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exists or which are related to core strength of the
company. This diversified portfolio will have an
added advantage of de-risking the business from the
fluctuations in steel business cycle, besides
optimizing opportunities in related business areas.

Besides, SAIL is making continual efforts for
ensuring raw material security and forging alliances
with global entities for tapping new markets. In this
direction, SAIL-led consortium AFISCO (Afghan
Iron & Steel Consortium), which had submitted its
bid for mining exploration rights at Hajigak, has
won the status of 'Preferred Bidder' for blocks B, C
and D of the mines with an estimated reserve of
1.28 billion tonnes of high-grade magnetite iron ore
(with 62-64% Fe content). For facilitating
acquisition of coking coal assets and companies in
the mineral-rich countries, International Coal
Ventures Private Limited (ICVL) is in the process
of identification of coking coal assets and mines
which could become a sustainable source of coking
coal for the promoter companies.

New strategic initiatives have been taken to
augment technological interventions, among which
is the newly-launched R&D 'master plan' of SAIL
aimed at facilitating "acquisition and development
of appropriate technologies for sustainable growth".
The other initiatives, related to SAIL's MoUs with
global players such as Kobe Steel of Japan and
POSCO of Korea are under progress.

Initiatives in this direction are mentioned below:

1. SAIL has signed term sheet for JV
agreement with Kobe Steel Limited [KSL], a
renowned Japanese Steel maker, for setting up a
JV company for preparation of DPR for setting
up a 0.5 MTPA ITmK3 technology [Iron Making
Technology Mark Three] based plant at Durgapur
for producing premium grade iron nuggets using
iron ore fines and non-coking coal.

2. Sindri Project: Cabinet Committee on
Economic Affairs (CCEA) in its meeting held
on 4th August, 2011 have approved the proposal
for revival of the closed units of FCIL / HFCL
with the stipulation that the BIFR proceedings
be expedited and thereafter, the matter including
changes, if any, required in bid parameters, be
placed before the Committee for a final
decision. As per the Cabinet approval, the
consortium of SAIL and NFL has been
nominated for revival of the Sindri Unit of FCIL.
A new SPV company SAIL-Sindri Projects Ltd
has already been incorporated on November 8,
2011.

3. The SAIL-led consortium AFISCO (Afghan
Iron & Steel Consortium), which had submitted
its bid for mining exploration rights at Hajigak,
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has won the status of 'Preferred Bidder' for
blocks B, C and D of the mines with an
estimated reserve of 1.28 billion tonnes of high-
grade magnetite iron ore (with 62-64% Fe
content). The consortium will now have the
opportunity to enter into a Hajigak Project
Contract with the Ministry of Mines of the
Islamic Republic of Afghanistan after formal
negotiations, and to receive a license to further
explore, develop and exploit the Hajigak iron
ore deposits.

4. On 16
th
June2011, SAIL signed MOU with
M/s Mishra Dhatu Nigam Limited
(MIDHANI) for exploring synergetic business
opportunities in production of value-added
products, enhanced research & development
activities, exchange of technical know-how and
joint investment between the two companies. A
joint task force team (TFT) has been constituted
to identify special steel products which can be
jointly developed by utilizing the R&D facilities
of both companies based on assessment of
market demand and subject to techno-economic
viability and commercial prudence.
5. On 23rd May 2011, SAIL and Burn
Standard Co. Ltd. (BSCL), a PSU under the
Ministry of Railways, entered into an MOU, for
setting up a Wagon Components Manufacturing
Facility (WCMF) as a 50:50 Joint Venture (JV)
for the manufacture of Cast Steel Bogies,
Couplers and related products for use on the
Wagons running on Indian Railways. The project
is planned to be set up on leasehold land under
the possession of M/s Burn Standard Co. Ltd.
(BSCL) at Jellingham, West Bengal. The Techno
Economic Feasibility Report (TEFR) has been
prepared by M/s RITES (Consultant).

6. On November 30, 2011, SAIL signed Term
Sheet with Hindustan Prefab Limited (HPL),
a PSU under the Ministry of Housing & Urban
Poverty Alleviation, to engage in the business of
prefab structures in steel and cement projects in
India. Both the companies intend to produce
Prefab steel products (PEB) and Prefab
concrete products (hollow core slabs), subject
to finalization of the location and layout of the
project.

7. Expansion of Captive Power Plants of
SAIL: SAIL is planning to expand the captive
power generating capacity at BSP and RSP
through its Joint Venture with NTPC by
installing 2x250 MW Units and BSP and 1x250
MW unit at RSP. NSPCL is conducting
feasibility studies for these power projects and
has applied for various statutory clearances like
Environment Clearance and allocation of coal
and water.
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8. Installation of Renewable Energy Based
Power Plants : In line with policy framework
provided by Electricity Act, 2003 and National
Electricity Policy, Electricity regulatory
Commissions of various states which mandates
all users of captive power generation to either
purchase / generate a specified minimum
percentage of captive power generated from
renewable energy sources (Solar, Bio Mass,
Wind , Small Hydro etc). A long term strategy
to meet renewable energy purchase Obligation
has been worked out and options are being
evaluated for installing Captive Power
generation based on renewable energy sources.


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