SAIL Sets Higher Production, Sales Targets

Maharatna Steel Authority of India Limited (SAIL) has laid highest thrust upon modernisation and expansion projects, including training of project personnel, in the memorandum of understanding (MoU) signed with the Ministry of Steel for the year 2011-12. Secretary (Steel) P.K. Misra and SAIL Chairman C.S. Verma signed the annual MoU at Udyog Bhawan here yesterday. SAIL has also incorporated new key thrust areas, including corporate governance, green supply chain and international alliances in the MoU for FY ’12.
 
As per the MoU for FY ’12, SAIL plans to achieve higher saleable steel production than planned for 2010-11 by utilising more than 114 per cent of capacity. The company has maintained its thrust on production of special/value-added steels and also plans to produce higher volumes than planned for the previous year. The gross sales projections are over 4% higher than planned for FY ’11. For modernisation and expansion projects, the weightage on achievement of milestones continues to be 10%, the highest weightage amongst dynamic parameters.
 
While fixing 1.1 per cent of gross margin as R&D expenditure for 2011-12, SAIL has identified seven key projects in this area and targeted 27 new patents. In relation to corporate governance, which is a mandatory parameter as per DPE guidelines, SAIL has stated in the MoU that it will comply with all the 30 requirements. In the area of sustainability, which is another mandatory parameter, the company has decided upon ‘greening’ of its supply chain by targeting achievement of ISO: 14001 certification for some of its warehouses during 2011-12. Other thrust areas identified under sustainability are reduction in specific energy consumption.

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