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Bhilai Steel Plant bags PM’s Trophy again

New Delhi, September 23, 2005 

Bhilai Steel Plant of the Steel Authority of India Ltd (SAIL) has been adjudged the best performing integrated steel plant in the country during the year 2003-04. The Ministry of Steel informed SAIL this morning that the Government has decided to award the prestigious Prime Minister’s Trophy and a cash reward of Rs. 1 crore to the plant for this achievement. This is the sixth time that BSP has bagged the PM’s Trophy since the award’s inception.

The announcement boosted the cheerful mood of the company’s shareholders attending the 33rd Annual General Meeting of the company at the Talkatora Stadium here today. SAIL Chairman Mr. V.S. Jain, while sharing the news of the recognition with the shareholders, stated: "SAIL is well set on the fast track of growth. It has developed the strength to withstand the vagaries of the steel business cycle." 

"The performance of SAIL touched a new peak during 2004-05 with net profit zooming by 171% to a record level of Rs. 6,817 crore and turnover touching Rs. 31,800 crore. For the first time the company paid interim dividend of 15% during the year and recommended a final dividend of 18% amounting to a total dividend of 33% on the paid-up equity. The total payout on this account will be to the tune of Rs. 1,363 crore," the SAIL chief added.

Briefing the company’s shareholders further on the strong financial position built up by the company, Mr. Jain said that SAIL has earned the status of a virtual zero debt company during 2004-05. During the last two years, SAIL did not acquire any fresh loans and financed its entire VR scheme for more 1,400 employees during 2004-05 from internal accruals. Mr. G.C. Daga, Director (Finance), SAIL, later elaborated upon the factors that contributed to SAIL’s sterling financial performance during 2004-05. "About 70% of the Rs. 6,737-crore improvement in PBT over the previous year – from Rs 2,628 crore to Rs 9,365 crore – was on account of market factors," he informed. Various management initiatives resulting in improvement in product-mix, techno-economic parameters, etc., as well as better financial management contributed the remaining 30% of the increase in PBT, he stated. 

A public shareholder of the company, Mr. Yashpal Chopra, enthusiastically appreciated the steady improvement in shareholder value as a result of the consistent improvement in performance by SAIL.

While drawing attention to the emerging constraints relating to raw materials, especially coking coal, Mr. Jain said the company is contemplating equity participation in certain coal mines and discussions were on to forge joint ventures/alliances for development and upgradation of mines. A major area of concern has been obtaining new mining leases and renewal of old leases, Mr. Jain added. 

Later, Mr. S.K. Roongta, Director (Personnel), SAIL who also heads the company’s Raw Materials Division, provided information on the status of development of new sources of raw materials, particularly iron ore: "SAIL has planned to develop large capacity mine of 7 MTPA with state-of-art technology and beneficiation facilities at Chiria with high investment." Organisations like MECON, NEERI and the Indian Bureau of Mines are engaged in preparing studies for the project, he added. SAIL was intensely pursuing the issue of renewal of mining leases relating to Chiria and was seeking help from the Central and State governments for providing required linkages of iron ore so as to ensure availability for meeting the company’s long-term growth plan, he said.

While updating the shareholders on SAIL’s future expansion plan which aims at enhancement of hot metal production capacity of the company by 8 million tonnes by 2011-12, the SAIL Chairman also disclosed that capital schemes valued at over Rs. 3,500 crore were under various stages of implementation. Mr. Jain further pointed out that SAIL was confident of maintaining its market leadership by volume in the years to come despite the entry of new players in the market.

The Navratna steel giant has been making significant efforts towards meeting its corporate social responsibilities. These includes contribution to develop sports facilities, efforts to preserve national heritage and monuments, and activities to enrich social and cultural life, said Mr. Jain.

Replying to a question from a shareholder on the availability and quality of coking coal required for fulfillment of SAIL’s growth plan, Mr. K.K. Khanna, Director (Technical) who also has additional charge of the company’s commercial functions, said that around 20 million tonnes of coking coal would be required by the SAIL plants, including IISCO, to produce 22.5 million tonnes of hot metal. Steps are being taken to support BCCL/CIL to enhance indigenous production, he disclosed. "We are also exploring strategic alliances/JVs for coking coal mines abroad," he said.

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