Implement time-bound E038;M plan or face action: Verma to SAIL

I am very clear that we will reach 19 MTPA capacity from the current 14 MTPA by this fiscal and this too is an achievement, the Chairman said,pointing out that his organisations turnover is likely to touch Rs 51,000 crore this fiscal.

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Steel Minister Beni Prasad Verma warned of administrative action against SAIL if the utility fails to implement its expansion and modernisation Eamp;M programme in a time-bound manner. In its defence,the state-owned steel major said it would be premature to ascertain cost overruns till the entire expansion exercise is complete and financial details are computed.

Emerging from a meeting convened to review the performance of Steel Authority of India Limited SAIL,Verma told The Indian Express that he was surprised when told that the PSU has sustained considerable time and cost overruns,primarily due to its own faults. We all want SAIL to perform better. But delays are not acceptable,especially when they could have been prevented. According to the ministrys estimate,SAIL has sustained delay in executing its expansion exercise by more than two years which includes cost overruns. I have asked SAIL to put its house in order to execute its expansion and modernisation programme in a time bound manner. If the situation arises then we may opt for administrative action the minister said.

The countrys biggest steelmaker has embarked on a Rs 72,000 crore expansion plan to take its capacity from 14 million tonnes per annum MTPA to 24 MTPA. SAIL hopes to complete all pending expansion schemes by June 2013. However,SAIL Chairman C S Verma refuted the allegations of delays said that until the entire expansion and modernisation exercise is completed,the PSU would not be in a position to compute cost overruns. Out of Rs 72,000 crore to be invested for the programme,we have spent about Rs 56,000 crore,which is huge by any standards. Which other PSU has done so? I agree that there has been delay in our IISCO plant in Burnpur West Bengal,but please appreciate that we are commissioning three blast furnaces8211;two in Rourkela and one in Burnpur before the end of this fiscal, C S Verma said.

On the ministers observation that the damaged coke oven batteries could have been repaired in time,Verma agreed that it could have been done well in tome,but it occurred before he took over as Chairman SAIL. I am very clear that we will reach 19 MTPA capacity from the current 14 MTPA by this fiscal and this too is an achievement, the Chairman said,pointing out that his organisations turnover is likely to touch Rs 51,000 crore this fiscal.