Business Standard

Sail Chalks Out Plans To Cut Raw Material Costs

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BUSINESS STANDARD

The raw materials division (RMD) of the Steel Authority of India (SAIL) has drawn up a three-pronged plan to lower its own cost of production as well as that of liquid iron or hot metal.

Raw material costs account for nearly 30 per cent of the cost of production at SAIL. The bulk of the expenditure is on coking coal, part of which is imported. Indigenous coking coal is purchased from Coal India.

SAIL produces its own iron ore from captive mines and consumes around 18 million tonnes of iron ore valued at around Rs 800 crore. Fluxes consumed cost over Rs. 400 crore.

 

SAIL sources said, first it would be enhancing iron ore despatches to plants by 10 per cent (over that of the present financial year) from its iron ore mines located at Kiriburu, Meghataru, Bolani, Barsua and Kalta.

This would cater to the higher needs of the blast furnaces where a production upswing is expected. The volume of despatches in the second half of the current financial year has increased by around 5 per cent.

The RMD is also working on enhancement in quality of iron ore in order to assist in improvement of blast furnace productivity, as part of SAIL

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First Published: Mar 27 2002 | 12:00 AM IST

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