VSP plans 3.47 MT saleable steel production this fiscal

The Visakhapatnam Steel Plant (VSP) plans a production of 3.47 million tonnes of saleable steel during 2013-14 and is set to cross a turnover of Rs 15,000 crore, a top official has said.

The plant earned a profit of Rs 353 crore last year, VSP Chairman and Managing Director (CMD) AP Choudhary told reporters here last night.

The plant had almost completed its 6.3 million tonnes capacity per annum expansion plan, production from which had started in some of the units.

It would start progressively in other units by the end of the current fiscal, he said.

The modernisation and upgradation of existing assets costing over Rs 5,000 crore are also being taken up, with the production of liquid steel expected to go up to 7.3 million tonnes per annum after its completion, he said.

During 2013-14, VSP is targeting a 20% growth in saleable steel production and was well on course to achieving the same, the CMD said.

As per an MOU entered with Ministry of Steel, a production of 3.47 million tonnes is envisaged in the year against 2.90 million tonnes in 2012-13.

Choudhary said during the first five months of the current fiscal, VSP had recorded a growth of nine% in saleable steel production.

He said with the balance units of expansion lined up for commissioning, the plant is hopeful of achieving the targeted 20% growth in saleable steel output during the year.

During 2012-13, cost savings of Rs 207 crore were achieved in the area of operations, procurement and fund management.

Regarding exports, he said VSP products were well accepted in several countries and Rs 600 crore of iron and steel products were exported during last year, registering a growth of 45% over the earlier year.

VSP also exported huge quantities of pig iron during 2012-13.