Govt looking to merge all steel PSUs: Paswan

Govt optimistic about achieving its Vision 2020 target of 100 mt.

Union Steel Minister Ram Vilas Paswan today said the government was examining a proposal to merge all state-owned steel manufacturers into one behemoth and iron ore producers into another.

"All pros and cons of a merger of steel producing and mining PSUs are being debated and the discussion is in the preliminary stages," he said at a press conference, expressing hope that the Cabinet would approve the proposed merger of Steel Authority of India Ltd and Indian Iron & Steel Company by June 20.

The minister expressed optimism that the government would be able to achieve its Vision 2020 target of 100 million tonnes and the required finances should not be a problem.

He also said a memorandum of understanding between South Korean steel major Posco and the Orissa government for a plant in the state would be signed by the end of this month.

The minister announced that except for Hindustan Steel Construction Ltd (HSCL) and Bharat Refractory Ltd (BRL), all PSUs under the steel ministry had a very good year.

The net profit of Sail increased by 171 per cent to reach Rs 6,817 crore and that of Rashtriya Ispat Nigam Limited (RINL) by 30 per cent to reach Rs 2,006 crore.

Among the PSUs engaged in mining, National Mineral Development Corporation (NMDC) recorded a profit of Rs 1,223.65 crore, an increase of 215 per cent, while Kudremukh Iron ore Company Ltd (KIOCL) registered a profit of Rs 650 crore, an increase of 116 per cent.

Manganese Ore India Ltd (MOIL) had a net profit of Rs 117.47 crore, an increase of 312 per cent. Metallurgical & Engineering Consultants India Ltd (MECON) also saw a turnaround and registered a net profit in 2004-05.

Steel PSUs have paid a dividend of Rs. 715 crore to the central government for the year 2004-05.

Paswan maintained that the decline in exports was primarily because of the rise in domestic demand.

The steel ministry is also reviewing availability of coal for steel making and a committee headed by former Sail chief Arvind Pandey has been set up. The committee will oversee the pricing of coking coal and also look into the subsidies issue.

Also, an expert committee under RK Dang is being set up to look into issues related to iron, manganese and chrome ores, and particularly for preparing guidelines for allotment of mining leases by state governments.