SAIL: Expansion drive

STOCKS IN THE NEWS

State-run steel major Steel Authority of India Ltd (SAIL) surged 15 per cent last week to close an all-time high level of Rs 111.70. The trigger came from the steel minister's statement about massive expansion at the company.

Steel minister Ram Vilas Paswan said SAIL will invest Rs 1,00,000 crore on raising its capacity from 14.6 million tonne to 40 million tonne by 2020. SAIL achieved record production of 3.318 million tonne of saleable steel and the highest-ever sale of 3.014 million tonne in December 2006 quarter.

The company registered 6 per cent growth in saleable steel production and an 8 per cent increase in sales in December 2006 quarter compared with the same period last year.

Last month, SAIL said it has been exploring several opportunities for acquisition of ownership interest in coal mines abroad for establishing long-term security in supplies of coking coal. The company is also on the hunt for coal properties to reduce its dependence on imported coal.