Steel Authority of India

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Steel Authority of India Limited
Type State-owned enterprise
public company
Traded as NSESAIL
LSESAUD
Industry Steel
Founded January 19, 1954
Headquarters New Delhi, India[1]
Key people Chandra Shekhar Verma (Chairman)
Products Steel, flat steel products, long steel products, wire products, plates
Revenue INR486.81 billion (US$8.2 billion) (2012)[2]
Net income INR35.42 billion (US$600 million) (2012)[2]
Total assets INR204.25 billion (US$3.4 billion) (2011)
Employees 99360 (2013)
Website www.sail.co.in

Steel Authority of India Limited (SAIL) (Hindi: स्टील अथॉरिटी ऑफ इण्डियालिमिटेड(Steel Authority of India Limited)) is one of the largest state-owned steel making company based in New Delhi, India and one of the top steel makers in World. With an annual turnover of around Rs.49,350 crores (FY 12-13). It is a public sector undertaking which trades publicly in the market is largely owned by Government of India and acts like an operating company. Incorporated on 24 January 1973, SAIL has more than 100,000 employees. During 2010–11, the manpower of SAIL reached a level of 110794 (as on 31 March 2011) from 116950 (as on 1.4.2010) The company's current chairman is C.S Verma. With an annual production of 13.5 million metric tons, SAIL is the 24th largest steel producer in the world.

SAIL It operates and owns 5 integrated steel plants at Rourkela, Bhilai, Durgapur, Bokaro and Burnpur and 3 special steel plants at Salem[disambiguation needed], Durgapur and Bhadravati[disambiguation needed]. As part of its global ambition the Company is implementing a massive expansion plan involving project work of building/adding new facilites with emphasis on state of the art green technology.SAIL is investing Rs 210 billion in West Bengal, to set up a wagon factory.[3] SAIL is a public sector company, owned and operated by the Government of India. According to a recent survey, SAIL is one of India's fastest growing Public Sector Units.Besides, it has R&D centre for Iron & Steel (RDCIS), Centre for Engineering and Technology (CET), Management Training Institute (MTI) and SAIL Safety Organization (SSO) located at Ranchi capital of Jharkhand.

History[edit]

1959–1973[edit]

SAIL traces its origin to the Hindustan Steel Limited (HSL) which was set up on 19 January 1954. HSL was initially designed to manage only one plant that was coming up at Rourkela.

For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956, and ultimately to Ranchi in December 1959.

A new steel company, Bokaro Steel Limited (Bokaro Steel Plant), was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from 1.58 MT (1959–60) to 1.6 MT. The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela – the Tandem Mill – was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968–69 and subsequently to 4MT in 1972–73.[citation needed] IISCO was taken over as a subsidiary in 1978 and later merged in 2006.

Holding Company[edit]

The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the Parliament on 2 December 1972. On this basis the concept of creating a holding company to manage inputs and outputs under one umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company, incorporated on 24 January 1973 with an authorised capital of Rs. 20 billion, was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an operating company.

Major Units[edit]

Sail integrated Plants

Durgapur Steel plant
  1. Rourkela Steel Plant (RSP) in Odisha set up with German collaboration (The first integrated steel plant in the Public Sector in India, 1959)
  2. Bhilai Steel Plant (BSP) in Chhattisgarh set up with Soviet collaboration (1959)
  3. Durgapur Steel Plant (DSP) at Durgapur, West Bengal set up with British collaboration (1965)
  4. Bokaro Steel Plant (BSL) in Jharkhand (1965) set up with Soviet collaboration (The Plant is hailed as the country’s first Swadeshi steel plant, built with maximum indigenous content in terms of equipment, material and know-how)
  5. IISCO Steel Plant (ISP) at Burnpur (near Asansol), West Bengal

Special Steel Plants

  1. Alloy Steels Plants (ASP), Durgapur, West Bengal
  2. Salem Steel Plant (SSP), Tamil Nadu
  3. Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi, Karnataka

Ferro Alloy Plant

  1. Chandrapur Ferro Alloy Plant (CFP) in Maharashtra

Central Units[edit]

  1. Centre for Engineering and Technology
  2. Research and development centre for iron and steel headed by kumaresan
  3. Management Training Institute
  4. SAIL safety organisation
  5. Raw materials division
  6. Central Marketing Organization
  7. SAIL consultancy organisation[4]
  8. Environment Management Division [5]

Joint Ventures[edit]

NTPC SAIL Power Company Limited (NSPCL)[edit]

A 50:50 joint venture between Steel Authority of India Ltd. (SAIL) and National Thermal Power Corporation Ltd. (NTPC Ltd.); manages the captive power plants at Rourkela, Durgapur and Bhilai with a combined capacity of 314 megawatts (MW). It has installed additional capacity by implementation of 500 MW (2 x 250 MW Units) power plant at Bhilai. The commercial generation of 1st Unit has commenced in April’2009 and the 2nd Unit in October 2009

  • NSPCL, Rourkela
  • NSPCL, Durgapur
  • NSPCL, Bhilai

Bokaro Power Supply Company Pvt. Limited (BPSCL)[edit]

This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in January 2002 is managing the 302-MW power generating station and 660 tonnes per hour steam generation facilities at Bokaro Steel Plant. BPSCL has proposed to expand its capacity by installing 2x250 MW coal based thermal unit at Bokaro. In addition, construction activities are underway for installation of 9th Boiler (300T/Hr) & 36 MW Back Pressure Turbo Generator (BPTG) project at Bokaro.

mjunction services limited[edit]

mjunction services limited operating in Information Technology and the Internet, is a 50:50 venture promoted by SAIL and TATA Steel. Founded in February 2001, it is today not only India's largest eCommerce company (having eTransacted worth over Rs. 900 billion till date) but also runs the world's largest eMarketplace for steel.[6]

Bhilai JP Cement Ltd[edit]

SAIL has incorporated a joint venture company with M/s Jaiprakash Associates Ltd to set up a 2.2 MT slag based cement plant at Bhilai. The company shall commence cement production at Bhilai by March'2010, whereas clinker production at Satna shall start within 2009.

Bokaro JP Cement Ltd[edit]

SAIL has incorporated another joint venture company with M/s JaiPrakash Associates Ltd to set up a 2.1 MT cement plant at Bokaro utilising slag from BSL. The project implementation is under progress with commencement of cement production likely by July 2011.Bokaro Jaypee cement plant opening ceremony was held by the chief minister of Jharkhand shri.Arjun munda in 2012.

SAIL&MOIL Ferro Alloys (Pvt.) Limited[edit]

SAIL has incorporated a joint venture company with Manganese Ore (India) Ltd on 50:50 basis to produce ferro-manganese and silico-manganese required for production of steel..

S&T Mining Company Pvt. Ltd[edit]

SAIL has incorporated a joint venture company with TATA Steel for joint acquisition & development of coal blocks/mines. New indigenous opportunities for coking coal development are being explored by the Joint Venture company for securing coking coal supplies.

International Coal Ventures Private Limited[edit]

International Coal Ventures Private Limited is a special purpose vehicle set up to achieve the target of making steel PSUs self-reliant in the area of coking coal, a joint venture company has been incorporated composed of five central PSU companies i.e. SAIL, Rashtriya Ispat Nigam Limited (RINL), Coal India Limited and other target countries.

Development of Hajigak iron ore mines in Afghanistan[edit]

A consortium comprisng state-owned NMDC and RINL and private sector steel players—JSW, JSW Ispat, Jindal Steel and Power, and Monnet Ispat and Energy and led by SAIL, plan to invest $75 million in first phase for the development of Hajigak iron ore mines in Afghanistan. The consortium, in November 2011, had won the mining rights for three iron ore mines which are said to contain 1.28 billion tonnes of rich reserves.[7]

Development of mines through outsourcing[edit]

SAIL has decided to outsource development of two virgin iron ore mines at Rowghat in Chhatisgarh and Chiria in Jharkhand with an annual capacity of 14 and 15 million tonnes, respectively. The development of each mine is likely to cost between Rs. 1,000–12 billion.[8]

Ownership and management[edit]

The Government of India owns about 86% of SAIL's equity and retains voting control of the Company. However, SAIL, by virtue of its Maharatna status, enjoys significant operational and financial autonomy.

Mr. Chandra Shekar Verma is the current chairman of SAIL, taking charge of the office on 11 June 2010. Prior to this, he was the director of Bharat Heavy electricals Limited (BHEL). Mr. Verma is a fellow member of the Institute of Company Secretaries of India (FCS) and of the Institute of Cost & Works Accountants of India (FICWA). He is a Commerce post-graduate with a Master's degree in Business Administration and Bachelor's degree in Law & Legislatures. Awards received by him during his career are plenty, some of which include 'Best CFO Award' of CNBC-TV 18 in the infrastructure sector for the year 2008–09 and 'Top Rankers Excellence Award for Best Professional' for the year 2008.

Other Board members include Shri Vinod Kumar Thakral,Shri Upendra Prasad Singh, Shri Anil Kumar Chaudhary,Dr. Isher Judge Ahluwalia, Shri Sujit Banerjee, Shri Arun Kumar Srivastava,Shri SS Mohanty, Shri HS Pati, Shri TS Suresh, Shri Kalyan Maity, Dr. Atmanand, Shri J.M.Mauskar, Shri Binod Kumar, Shri R.S.Sharma, Shri N.C.Jha, Shri D.K.Mittal and Mrs. Parminder Hira Mathur(as on March 2014).

Achievements[9][edit]

  • "Best of all" Rajiv Gandhi National Quality Award in 1993, 2006, and 2007 for their Bhilai and Bokaro plants[10]
  • Quality Summit New York Gold Trophy 2007 (International Award for Excellence & Business Prestige) and Award of Excellence Maintenance for Sumitomo Heavy Industry & TSUBKIMOTO-KOGIO, Japan won by Alloy Steel Plant, Durgapur.
  • SAIL was featured in the 2008 list of Forbes Global 2000 companies at position 647.[11]
  • Golden Peacock Award for Combating Climate Change – 2008 for BSP, Occupational Health and Safety- 2008 for BSL
  • National Safety Award to Bhilai Steel Plant announced by the Ministry of Labour & Employment, Government of India – 2008
  • Durgapur Steel Plant won the 2nd Prize in the Association of Business Communicators of India Awards – 2008.
  • Ispat Bhasha Bharati. the Rajbhasha Journal of SAIL has been awarded with the first prize under the All India House Journal Award Scheme – 2008–09
  • Salem Steel Plant received the prestigious Greentech Gold Award in Metal and Mining Sector – 2008–09.
  • Golden Peacock Award for Corporate Social Responsibility won by Bhilai Steel Plant (BSP) for the third year in a row – 2009.
  • Rourkela Steel Plant bagged the prestigious Srishti Good Green Governance (G-Cube) Award – 2009.
  • Greentech HR Excellence Award bagged by Durgapur Steel Plant – 2009
  • The steel township of Rourkela Steel Plant (RSP) has been ranked 14th in sanitation and cleanliness by Union Urban Development Ministry – 2009–10
  • Greentech Safety Gold Award was bagged by Bhilai Steel Plant – 2010
  • The HR Excellence Award by the Greentech Foundation won by Bhilai Steel Plant – 2010
  • SSP has won the prestigious Greentech Silver Award in Training Category of Greentech HR Excellence Awards – 2010.
  • Award for financial and operational strength by Indian Institute of Industrial Engineering (IIIE)- 2009–10
  • Golden Peacock Environment Management Award – 2011
  • Randstad Award for HR Practices and Employer Branding under 'Manufacturing Industries' category – 2011
  • Maiden Wockhardt Shining Star CSR Award in the Iron & Steel Sector category – 2011.
  • Salem Steel Plant (SSP) has won the prestigious National Sustainability Award for the 6th time in succession and 13th time since inception of the award from Indian Institute of Metals (IIM)- 2011

[12] Of the 33 Prime Minister's Shram Awards announced for 2010 by the Ministry of Labour, Government of India,17 of which went to PSUs, SAIL employees bagged 11 awards. Of the total number of 76 awardees for the year, 45 belong to SAIL – a remarkable distinction for any organisation. Maharatna SAIL has received the prestigious Golden Peacock Environment Management Award for the year 2011. The award, in recognition of SAIL's initiatives and achievements in the field of environment management, was presented by Union Minister for Home Affairs Shri P. Chidambaram on 24 June 2011

74 of a total of 128 awardees who have won the prestigious Vishwakarma Rashtriya Puraskar (VRP) are from SAIL. The 15 out of 28 awards won by SAIL went to our 74 employees for the performance year 2008. Bhilai Steel Plant won 7 such awards involving 36 employees, Bokaro Steel Plant won 6 awards involving 29 employees. Durgapur Steel Plant and Salem Steel Plant both won 1 award each involving five and four employees respectively. SAIL employees have bagged 4 out of 5 awards of Class A, which is the highest number of A Class awards won by any PSU in India.

The India’s union minister of steel, Mr Beni Prasad Verma has said that the Steel Industry in India which contributes over 2% to the GDP is expected to become the 2nd largest producer of crude steel in the world by 2015.

Future Plans[edit]

SAIL, is in the process of modernising and expanding its production units, raw material resources and other facilities to maintain its dominant position in the Indian steel market. The aim is to increase the production capacity from the base level production of 14.6 MTPA (2006–07) to 26.2 MTPA of Hot Metal.

The following table shows the increased production of various items prior to and post expansion.

Item Actual Production Capacity Production Capacity after Expansion
Hot Metal 14.6 Mtpa 26.2 Mtpa
Crude Steel 13.5 Mtpa 24.6 Mtpa
Saleable Steel 12.6 Mtpa 23.1 Mtpa

[13]

On 25 May 2012, Steel Authority of India entered into a Memorandum of Understanding with the West Bengal government and Burn Standard Company Ltd for setting up of a railway Wagon factory of approximately Rs. 21 billion. This project will create an approximate of 75300 jobs. [14]

Competitors[edit]

Competitors of Steel Authority of India are Tata Steel, Essar Steel, JSW Steel.

See also[edit]

References[edit]

  1. ^ "Steel Authority of India – Corporate Office Report". sail.co.in. Retrieved 29 May 2012. 
  2. ^ a b "Consolidated Result". bseindia.com. Retrieved 29 May 2012. 
  3. ^ "SAIL to invest Rs 21,000 crore in West Bengal". The Times of India. Retrieved 25 May 2012. 
  4. ^ "Steel Authority of India". SAIL. Retrieved 23 August 2010. 
  5. ^ others_unit_environment. Sail.co.in (28 May 2013). Retrieved on 29 July 2013.
  6. ^ "mjunction – About Us". mjunction.in. Retrieved 29 May 2012. 
  7. ^ "SAIL-led consortium to invest $75mn on Afghan mines in Phase-I". The Times of India. 7 August 2012. 
  8. ^ "SAIL to outsource development of 2 virgin mines". 9 August 2012. 
  9. ^ Awards & Accolades. Sail.co.in (28 May 2013). Retrieved on 29 July 2013.
  10. ^ SHRAWAN (2013-05-29). "ANNEX IV: LIST OF AWARD WINNERS OF RAJIV GANDHI NATIONAL QUALITY AWARDS". http://www.bis.org.in. New Delhi: Bureau of Indian Standards. Retrieved 2014-05-15. 
  11. ^ "The Forbes 2000". Forbes.com. 2 April 2008. Retrieved 23 August 2010. 
  12. ^ "Awards & Accolades". sail.co.in. Retrieved 23 August 2010. 
  13. ^ "SAIL- Into the Future". Retrieved 29 May 2012. 
  14. ^ "Sail to invest 2100 crore in West Bengal". economic.indiatimes.com. 25 May 2012. Retrieved 29 May 2012. 

External links[edit]