GLOBAL STEEL SCENARIO AND INDIAN STEEL INDUSTRY

INTRODUCTION:
Though evidences indicate that iron and steel have been used by for almost 6000 years, the modern form of iron and steel industry came into being only during the 19th century. The growth and development of Iron and Steel Industry in the world until the Second World War was comparatively slower. But the industry has grown very rapidly after the Second War was. World production of steel, which was only 28.3 million tones (MT) in 1900, rose to 695 MT by 1992. The oil crisis of the seventies affected the entire economy of the world including the steel industry. The position started improving after 1983 and peaked at 780 MT in 1989. It starred declining till 1994 (723MT), picked up again to 755.8 in 1995. The World Steel production is around 1132 MT in 2005, registering a growth of 6% over 2004.

HISTORICAL BACKGROUND
The antiquity of mans use of iron attested by references to that metal both in fragmentary writing & inscriptions that survived ancient civilization of Babylon, Mexico, Egypt, China, India, Greece & Rome. However, it is believed that most of the iron used by prehistoric people might have been obtained by fragment of meteorites and it remained a rare metal for many centuries. For many years after man learned how to extract iron from its ores, the product probably was so relatively soft and unpredictable, that bronze continued to be preferred for many tools and weapons. Eventually iron replaced the nonferrous metal for these purposes when man learned how to master the difficult arts of smelting, forging, hardening and tempering iron. Archeological findings in Mesopotamia and Egypt have proved that iron or steel has been in the service o mankind for nearly 6000 years. The origin of the methods used by early man for extracting iron from its ores is unknown. Some have suggested that many learned the method accidentally. Iron, in the beginning was smelted by charcoal made from wood. Later coal was discovered as a great source of heat. Subsequently, it was converted into coke, which was found to be ideal for smelting of iron. Iron kept its dominant place for 200 or more years after the Saugus works that was the first successful Iron Works in America founded in 1646, with the advance of Industrial Revolution, iron formed the rails for newly invented railroad trains. It was also used to amour the

sides of the fighting ships. About the mid 19th century the new age of steel began with the invention of Bessemer process (1856) making steel available in large quantities at reasonable cost.

INDIAN HISTORY
Indian history is also replete with references to the usage of iron and steel. Some of the ancient monuments like the famous iron pillar near New Delhi or the massive beams used in the Sun Temple at Konark bear ample testimony to the technological excellence of the Indian metallurgists. The history of iron in India goes back to the ancient era. Our ancient literary sources like Rig Veda, the Atharva Veda, the Puranas and other Epics are full of references to iron and its uses in peace and war. According to one of the studies, iron has been produced in India for over 3000 years. GLOBAL SCENARIO WORLD STEEL PRODUCTION REPORT ISSB Monthly World I & S Review WORLD STEEL REVIEW, JUNE 2008 Production of crude steel for the 66 countries reporting to the IISI in April was estimated to be 116.4 million tones, an increase of 5.6% over April 2007. The total of the 4 months to date was 457.3 million tones, 5.7% above the January to April period in 2007. Excluding China, which accounted for 37% of world production in the first four months of 2008, the rise in April was only 2.9%, with the four months total only up by 3.7%. Global trade in steel was 440 million tons in 2007 (including internal EU trade), 5% higher than in 2006. China increased its exports by one third to 68 million tones, almost double the Japanese total. In

the European Union 27, crude steel production was flat in April at 18.2 million tones compared to April 2007, and fell by 0.7% in the 4 month to date to 71.6 million tonn4es. Monthly production in Germany decreased by 1.3% in April, and by 1.9% in the January to April period to 16.1 million tones. Steel production in France fared even worse dropping by 9% in the month, and by 7.9% in the four months to date to 6.5 million tones. However, Italian crude steel production increased by 7.2% in April, and by 1.5% in the year to date to 11.2 million tones. Spanish production rose by 1% in April, while the year to date was up 2.5% to 6.4 million tones. In the UK, production fell by 10.3% in April, bringing the 4 months total down 0.8% to 4.8 Million tones. In the rest of Europe Turkish production increased by 2.7% in April and by 8.2% in the four months to 9.2 million tones.

The four months total for Serbia was up 14.1% to 664 thousand tones. Crude steel production in the CIS countries only rose by 0.3% in April, with Russian production down 0.4%, bringing the year to date for the CIS up 3.0% with Russia four month total up 3.6% to 25.3 million tones. Ukrainian steel production increased by 2.7% in April, with the year to date total up 3.3% to 14.7 million tones. Kazakhstan steel production fell by 12.4% in the four months to 1.3 Million tones. In 2007 the Ukraine overtook Russia as the third largest exporter of steel after China and Japan, and it has remained third into 2008. In the first four months of 2008 Ukraine exported to 10.9 million tones of steel, up 6.2% on the same four months in 2007. Exports of semis rose by 13.5% to 4.6 million tones, with hot rolled plate lengths up 20.7% to 1.6 million tones. Exports of hot rolled wide coil fell slightly to 1.1 million tones. The large increase in semis was primarily in semis over 0.25% carbon, with some increase in slabs until 0.25% carbon. The rise in plate exports was mostly in plate over 10mm thick, with some increase in the 4.75 to 10mm range. In terms of markets, the Middle East was the destination for 20% of total Ukrainian exports in the first four months of 2008, up 48% from the previous year. The next largest market was the EU 27 at 17.5%, with Italy by far the largest recipient, although the EU total was down 12% from 2007. The other CIS countries received a further 15% of Ukrainian exports, with the tonnage to the Far East more than doubling to 14% of the total. Turkey remained the largest single market at 1.3 million tones, followed by Russia at one million tones. On the North American continent US steel production increased by 1.1% in April, bringing the year to date total up 6.5% to 33.8 million tones. Canadian steel production rose by 3.7% in April, while the four months total was up 3.0% to 5.6 million tones. Mexican steel production, however, increased by 10.5% in April, with the year to date total up 10.4% to 6.3 million tones. Crude steel production in South America showed an increase with Brazilian production up 7.1% in April and by 7.8% in the year to date to 11.5 million tones. Steel production in Venezuela fell by 2.1% in April, while the four months total was down 13% to just under 1.5 million tones. Argentinean production, however, rose by 5.9% in April, while the year to date total was up 9.9% to 1.9 million tones. In Africa and the Middle East, South African production rose by 0.5% in April, although the year to date total was down 2.6% to 3 million tones. Egypts steel production, however, increased by 1.7% in April, while the four months total was 14.% up at 2.3 million tones. Iranian production increased by 3.1% in the month, although the year to date total was down 1.1% to nearly 3.4 million tones. Turning to the Far East, Chinas steel production increased by 10.2% in April to 44.7 million tones, and by 9.1% in the four months to 1679.8 million tones. Japanese crude steel production was up 4.2% in April, while the January to April total increased by 4.4% to 41 million tones.

South Korean production fell by 0.4% in April with the year to date total at 17.5 million tones, 3.7% up on the same period in 2007. In India, production showed a rise of 12.7% in April, bringing the four months total up by 7.7% to 19 million tones. Crude steel production in Taiwan was up 12.2% in April, while the year to date total was up by 11.2% to 7.6 million tones. Japanese steel exports increased by 15.7% to 13.4 million tones in the first four months of 2008 compared to 2007. Hot rolled coil exports were 3.1 million tones, up 15.4%, semis were 1.8 million tones, up 16.2%, and galvanized steel exports were just below 1.8 million tones, up 10.5%. Some 84% of Japanese exports in 2008 went to other far eastern countries with 3.5 million tones to South Korea, up 19%, 2.3 million tones to China, up 12%, 1.5 million tones to Thailand, up 9%, and 1.3 million tones to Taiwan, up 18.5%. These four countries a counted for 64% of Japanese exports, the same percentage as in the previous year.

OUTLOOK FOR THE INDIAN ECONOMY

After witnessing rapid strides during the years after the liberalization process was set in motion, Indias GDP grew at an average rate of 5.2 % during the period 199899 to 200203. However, there was a break from the trend in 200304, during which the economy is estimated to have grown at more than 8%. The economy of India, measured in USD exchange rate terms, is the twelfth largest in the world, with a GDP of around $1 trillion (2008). It recorded a GDP growth rate of 9.0% for the fiscal year 2007 2008 which makes it the second fastest high emerging economy, after China, in the world. The economy is expected to continue on a high growth path with continued macroeconomic stability. Over the years there has been a downward trend in interest rates accompanied by moderate inflation and adequate liquidity in economy. In April 2003, the Bank Rate was reduced to 6%, which was a 30 years low. Commercial Banks have also resorted to subPLR lending. With sub PLR lending and reduction in maximum spread over PLR, lending rates have effective come down Infrastructure development has been a focus area for the Government in recent years. In the road and highway network, India is witnessing development of multiple lane, safe and well designed interstate highways. Recently the Government has announced a planned outlay for the rural road and highway network development. The Golden Quadrilateral Project is an ambitious project that would connect the four major metros via state of the art highways. The East West and North South corridors would link up the remotest parts of the country. The Government is also planning to facilitate investments in seaports and airports in a major way. STEEL DEMAND SCENARIO

Indias steel production is likely to surpass the domestic requirement by 201112, easing pressure on prices of the alloy, which has been adding to the spiraling inflation. We shall achieve 124 million tons of steel capacity by 201112, well exceeding the requirement that would be to the tune of about 110 million tons at that point of time, Steel Minister Paswan said. Steel prices shot up by over 50 percent since January, adding to the woes of the UPA government, which is battling a sevenyear high inflation of 8.75 percent in its last year. The annual demand for steel in India has been rising by about 13 per cent, but production is growing by over 6 percent, according to official sources. Last fiscal, the countrys crude steel production stood at 53.9 million tons, of which about 5 million tons were exported. To bridge the demand supply mismatch, India had to import nearly 7 million tons of steel. Steel Secretary R S Pandey while endorsing India becoming a net steel importer from being a net exporter till a few years ago, said the trend is likely to continue for some time as increase in capacity takes at least three to four years. As per official figures, countrys finished steel import went up by over 300 percent from 1.6 million tons in 200203 to nearly 7 million tons in 200708 (provisional). In view of the growing demand, the government plans to scale up steel production to over 290 million tons by 2020. It has also envisaged that the sector will see an investment of Rs. 8, 70,640crore by that time. Going by an estimate of Rs. 4,000-crore outlay per million tones of additional capacity, an investment of Rs. 2, 76,000crore is likely to take place by 2012 and Rs. 8,70,000crore by 2020. As of now, both domestic and foreign steel players have signed 193 memoranda of understanding with states for setting up new units with a total planned capacity of around 243 million tons and a total proposed investment of over Rs. 5,14,000crore. Private and public sector steel companies have also embarked on capacity expansion, Steel Authority of India Limited plans to take up its hot metal production to 26.13 million tons by 2010 from the present 12.84 million tons. Private steel majors including Tata, JSPL, ISPAT and JSW Steel have also lined up expansion of their existing production strength.

CORPORATE AGENDA FOR THE FUTURE:

One of the key objectives of SAIL is to be a World Class Company and the leader in Indian steel business by leveraging its key competencies. These competencies will enable the company to manufacture products at lower cost and more speedily than competitors. The real source of advantage will be organizations ability to consolidate corporate wide technological knowle dge base and skills into competencies, with sufficient empowerment to adapt quickly to changing opportunities. The thrust is on building a World Class Corporation, which will be able to

maintain its growth and profitability by leveraging its internal strength and outperforming others in the market place irrespective of the vagaries of the market.

Satisfaction Aspiration Improvement Leadership

Vision:

Customer Unlimited Continual Market

To be a respected world class corporation and the leader in Indian Steel Business in quality, productivity, profitability and customer satisfaction.

Credo:
We build lasting relationships with customers based on trust and mutual benefit. We uphold highest ethical standards in conduct of our business. We create and nurture a culture that supports flexibility, learning and proactive to change. We chart a challenging career for employees with opportunities for advancement and rewards. We value the opportunity and responsibility to make a meaningful difference in peoples lives.

Strategic Goals:
To continue in the business of steel and steel related activities. To enhance market share in growth segments. To improve profits by productivity improvements cost reduction, high value added products and customer satisfaction. To achieve excellence in quality across the value chain. To secure availability of key raw materials and alleviate infrastructure bottleneck which may constrain long term growth.

BACKGROUND & HISTORY

A Rich Heritage The Precursor SAIL traces its origin to the formative years of an emerging nation - India. After independence the builders of modern India worked with a vision - to lay the infrastructure for rapid industrialisaton of the country. The steel sector was to propel the economic growth. Hindustan Steel Private Limited was set up on January 19, 1954. The President of India held the shares of the company on behalf of the people of India. Expanding Horizon (1959-1973)

Hindustan Steel (HSL) was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956, and ultimately to Ranchi in December 1959.

A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from .158 MT (1959-60) to 1.6 MT. The second phase of Bhilai

Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.

INTRODUCTION

COMPANY PROFILE
FORMATION OF HINDUSTAN STEEL LIMITED
When the Government of India decided to enter into the field of Iron and Steel production, it broadly envisaged not to run the firm as a departmental undertaking. Although initially steel project administration was directly under a Ministry of the Central Government, Hindustan Steel was formed as a Limited Company, with President of India owning the shares on behalf of the people of India. Thus Hindustan Steel Limited was set up on January 19, 1954.

GROWTH OF HINDUSTAN STEEL LIMITED (1959 1973)

To start with, Hindustan Steel was designed to manage with only plant, that was coming up at Rourkela. For Bhilai & Durgapur plants, the preliminary work was done by officials in Iron & steel Ministry. From April 1957, the supervision and control of the Bhilai & Durgapur Plant were also transferred to Hindustan Steel. The registered office was originally in New Delhi, moved to Calcutta in July 1956 and ultimately shifted to Ranchi in December 1959. Initially Bokaro Project was also under HSL. A new steel company Bokaro Steel Limited was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai & Rourkela Steel Plants were completed by end of December 1961. The 1 MT phase of Durgapur was completed in January 1962 after commissioning of wheel and axle plant. As a result, the crude steel production of HSL went up form 158 thousand tones (in 1959 60) to 1.6 MT (196162).

2.5 MT phase of Bhilai was completed on 2nd September, 1967 after commissioning of Wire Rod Mill. The last unit of 1.8 MT phase of Rourkela was Tandem Mill commissioning on 17th February, 1968 and 1.6 MT phase of Durgapur was completed on

6th August 1969 after commissioning of furnace in SMS. Thus, with the completion of 2.5 MT stage in Bhilai, 1.8 MT in Rourkela and 1.6 MT phase of Durgapur, the total Crude Steel output from HSL was raised to .7 MT in 196869 and 4 MT in 197273. Steel Authority of India limited (SAIL) is the leading steel making company in India. It is fully integrated iron and steel maker, producing both basic and special steel for domestic construction engineering, power, railway automotive and defense industries and for safe in export markets.

Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL manufactured and sells a broad range of steel product, including hot and cold rolled sheets and coils, galvanized sheets, electrical sheets, structural, railways product, plates, bar and rods, stainless steel and other alloy steels. SAIL produces iron and steel at four integrated plants and three special steel plants, located principally in the eastern and central region of India and situated close to domestic sources of raw material, including the companys iron ore, limestone and dolomite mines. SAILs wide ranges of long and flat steel products are much in demand in the domestic as well as international market. This vital responsibility is carried out by SAILs own central marketing organization (CMO) and the international trade division.CMO and the International trade division. CMO and the International Trade Division. CMO encompasses a wide networks of 38 branch office and 47 stockyards located in major cities and towns throughout India.

With technical and managerial expertise and knowhow in steel making gained over four decades, SAILs consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world wide. SAIL has a wellequipped Research and Development for iron and steel (RDCIS) at Ranchi which helps to produce quality steel and develop new technologies for steel industry. Besides, SAIL has its own inhouse centre for engineering and Technology (CET), Management training institute (MTI) and safety organization at Ranchi. Our captive mines are under the control of the raw materials Division in Kolkata. The Environment Management Division and Growth Division of SAIL operate from their headquarter in Kolkata

MAJOR UNITS:

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh Bokaro Steel Plant (BSL) in Jharkhand Durgapur Steel Plant (DSP) in West Bengal Indian Iron and Steel Company (IISCO) in West Bengal Rourkela Steel Plant (RSP) in Orissa.

Special Steel Plants

Alloy steel plant (ASP) in West Bengal Salem Steel Plants (SSP) in Tamilnadu Visvesvaraya iron and Steel Plant (VISL) in Karnataka

Subsidiaries
Maharashtra Elektrosmelt Limited (MEL) in Maharashtra Bhilai oxygen limited (BOL) in New Delhi

BHILAI STEEL PLANT (BSP)

An agreement was signed in New Delhi on February 2, 1955 between the Government of India and Soviet Union to set up an integrated steel plant at Bhilai with a capacity of 1 MT of ingot steel. The plant began its operation on January 31, 1959 when Coke Oven Battery No. 1 was commissioned. Production of Pig Iron at Bhilai began on February 4, 1959 when Blast Furnace No. 1 was commissioned. Situated in Chhattisgarh, this was one of the three 1 MT capacity crude steel plant set up in the Public Sector in the late fifties. Subsequently it was expanded to 2.5 MT ingot capacities, and currently expanded to 4.0 Mt. With this, the Saleable Steel Capacity increased from 1,965 MT (2.5MT) stage) to 3,153 MT (4.0 MT stage).

PRODUCT MIX OF BSP

Product Mix Semis Tones / Annum 553,000

Rails

500,000

Heavy Structurals

250,000

Merchant product

500,000

Wire roads

400,000 950,000

Plates Total Saleable Steel

3,153,000

ROURKELA STEEL PLANT (RSP)

RSP was the first of the three steel plants taken up in the Public Sector. On December 31, 1953, an agreement was made between the Government of India and a Consortium consisting of Thyssen & Demag, Aktiengesselischaft, Duisburg to set up steel plant of initial capacity of 0.5 MT subsequently a supplementary agreement was signed in July 1955 to set up a 1 MT plant. The Coke Oven Battery No. 1 was commissioned on 3rd December, 1958 and the first of the three Blast Furnaces was commissioned on 3 rd February, 1959.

PRODUCT MIX OF RSP

Product Mix Plate Mill Plates HR Plates HR Coils

Tones/ Annum 325,000 130,000 746,000

ERW Pipes SW Pipes Galvanized Sheets (GP & GC) Electrolytic Tin Plates Silicon Steel Sheets (CRNO) Special Steel Plates Total Saleable Steel

45,000 55,000 180,000

60,000 75,000

3,000 1,839,000

DURGAPUR STEEL PLANT (DSP)

Set up with an initial annual capacity of 1 million tones of ingot steel, DSP was later expanded to 1.6 million tones and further expanded to 1.876 MT. Among the various products rolled out are medium structurals, merchant products, scalp and continuously cast billets. Anew product-extra high strength thermo mechanically treated (TMT) bar has been successfully developed and marketed. Besides these, it is a major producer of railway products like forged wheels and axles, sleepers and fish plates.

PRODUCT MIX OF DSP

Product Mix Merchant product Structurals Scalp Wheels and Axles Semis

Tones / Annum 325,000 180,000 220,000 30,000 1000,000

Total Saleable Steel

1,755,000

BOKARO STEEL PLANT (BSP)

Bokaro Steel Plant brings out before ones eyes the vision of a massive giant in the making. As the fourth steel plant in the Public Sector, conceived in 1959, it actually started taking shape in 1965 with the signing of an agreement with the Government of USSR on 25th January 1965. Envisaging a capacity of 1.7 MT in 1st stage and 4.0 MT in 2nd stage, its construction started on 6th April, 1968.

PRODUCT MIX OF BSP

Product Mix

Tones/Annum

HR Coils, HR Plates & HR Sheets

2,120,000

CR Coils and Sheets

1,390,000

GP / GC Sheets

170,000

Tin Mill Black Plates

100,000

Total Saleable Steel

3,780,000

IISCO STEEL PLANT (ISP), BURNPUR

The erstwhile India Iron and Steel Company (IISCO), one of the oldest steel plants of the country has been amalgamated with Indias largest steel maker, Steel Authority of India Limited (SAIL) with effect from 16th February 2006. Following merger, IISCO has been now renamed as IISCO Steel Plant (ISP). The plant is all set to achieve new milestones implementing its growth plan in tune with SAILs Corporate Plan 2011-12 Plans are already approved to invest around Rs. 8,000crore for technological up gradation of the IISCO Steel Plant and its collieries. ISPs annual hot metal production capacity is envisaged to go up to 2.5 million tons (MT) by 2011-12 from a level of 0.35 MT in 200405. The appointed date of amalgamation is 1st April 2005. The spotlight is now on ISP, the fifth integrated steel plant of SAIL.

PRODUCT MIX OF ISP

Product Mix Structurals & rails Bars & Rods Special Section Semis for sale Saleable Steel Conversion Total Saleable Steel

Tones /Annum 1,60,000 1,12,000 11,000 14,000 2,97,000 54,000 3,780,000

Pig Iron

3,32,000

Alloy Steel Plant (ASP)

The pioneer in the production of ally and special steels, Alloy Steel Plant (ASP), Durgapur was commissioned with an initial capacity of 1,00,000 tones of ingot steel and 60,00 tones of saleable steel. Through two phases of expansion and modernization, the capacity has been revised to 2, 46 lakh tones liquid steel and 1.78 lakh tones of saleable steel from SMS-1.

Salem Steel Plant (SSP)

Salem Steel Plant (SSP) is a premier in the producer of international quality stainless steel in India. Commissioned in 1981, the Plant has a capacity to roll 1,86,000 tones of hot rolled carbon and stainless steel flat products and 70,000 tones of cold rolled stainless steels and coils per annum. The Plant has gone beyond its designed capacity and successfully cold rolled value-added 0.13 mm thick stainless steel. SSP can also supply hot rolled carbon steel in 1.5, 1.4 and 1.25 mm thickness range. Its products have become a household name Salem Stainless in the domestic market and are widely exported, besides meting the requirements of 100 percent export oriented units and free-trade zones in India. In hot rolled special grade carbon steels, SSP has been recognized as a well known manufacturer of boiler quality steel. The Plant is also supplying LPG grade IS 6240 steel in sheet form. The entire Plant is certified for the ISO 9001 Quality Assurance and the ISO 14001 Environmental Management System.

Viswesvaraya Iron & Steel Plant (VISP)

Viswesyaraya Iron & Steel Plant (VISP) is a pioneer in the production of high quality alloy and special steels and pig iron. Steel is produced through BF-BOF-LRF-VD route. The facilities include vacuum degassing, vacuum oxygen-decarburization, ladle refining furnaces, continuous casting machine, 1600 tones-hydraulic-high-speed forging press, a fully automatic horizontal long forging machine with numerical control system for a semi-automatic and automatic mode of operation. VISP has an installed capacity of 77,000 tones of alloy and special steels and 205, 000 tones of hot metal.

Raw Materials Division (RMD)

SAIL has the second largest mining outfit in the country after Coal India Ltd. Spread over the mineral rich states of Jharkhand, Orissa and Chhatisgarh, the mines of SAIL, started their operations as captive sources of raw materials of its integrated steel plants. By virtue of their locations and also having developed under the different steel plants for more than 2 to decades, they present a picture of fascinating diversity, not only in the nature of their reserves / deposits but in their legacies as well, with each one of them being remarkably distinct from the other. In 1989 SAIL launched Raw Materials Division (RMD) as a separate unit and by June 1990 had brought all its mines that were captive to its steel plants in the eastern sector RSP, DSP, BSP and ISP (then a subsidiary) under its umbrella. The mines attached to Bhilai Steel Plant continued to work separately and were kept out of the RMD ambit.

Maharashtra Elektrosmelt Limited (MEL)

Maharashtra Elektrosmelt Limited (MEL) besides being the largest producer of manganese based Ferro-alloys in the country with a capacity to produce 100,000 tones of Ferro-alloys, has emerged as a leader and trend-setter in technology development. A fast changeover from High Carbon Ferro Manganese to Silicon Manganese and vice-versa in the submerged Arc Furnaces, production of Medium Carbon and Low Carbon Ferro Manganese through Electric Arch Furnaces, Sintering of manganese one fines through Conventional and High Pressure Sintering Process, Generation of 4.2 MW electric power by gainfully utilizing Ferro-alloys furnace gases and production of building bricks from Ferro-alloy slogs are some of MELs major technological achievements. Its Ferro-alloys route has received ISO 9001:2000 Certification.

Central Coal Supply Organization (CCSO)

Situated at Dhanbad in Jharkhand, the Central Coal Supply Organization (CCSO) of the Operations Directorate, SAIL is entrusted with the crucial task of arranging around 14,000 tones each of indigenous coking coal and power grade coal daily for steel plants.

Central Marketing Organization (CMO)

Central Marketing Organization (CMO), one of the largest marketing networks in the country, markets mild steel products from the four integrated steel plants of SAIL. The CMO headquarters is at Kolkata and the Commercial Directorate is located at New Delhi. A nation-wide network of regional offices, sales offices and several strategically placed warehouses is further supplemented

by consignment agents and authorized dealers to meet the demands of the smallest customers in the remotest corners of the country.

SAIL Consultancy Division (SAILCON)

SAIL, during its existence of over four decades, has acquired a level of expertise and vast experience in building, operating and maintaining a chain of integrated and mini steel plants and associated facilities encompassing diverse technologies, equipment and product-mix. The knowledge thus gained led to formation of a constancy an services marketing division SAIL. Consultancy Division (SAILCON), based in New Delhi, to provide a wide range of service to the iron & steel and other industries in India and abroad.

Research & Development Centre for Iron & Steel (RDCIS)

The Research & Development Centre for Iron & Steel (RDCIS) at Ranchi is the corporate R & D unit of SAIL, set up in 1972, the Centre has ISO 9001 certification to its credit. It undertakes R & D projects in diverse realms of Iron & Steel Technology under the categories of Basic Scientific research, Plant Performance Improvement, investigation & Consultancy Assignments, Equipment & Instrument Design and major Technology Development.

SAIL Safety Organization (SSO)

SAIL Safety Organization (SSO), a Corporate Unit set up in 1988 at Ranchi, monitors and guides the Safety Promotional, Fire and Occupational Health Services activities undertaken at different Steel Plants / Units / Mines / Stockyards. To accomplish the above mentioned functions, SSO formulates and prepares appropriate safety policies, procedures, systems, action plans, guidelines etc. and follows up for their implementation and thereby helps in providing accident free work environment. Consistent efforts are also being made by SSO for competence building in the area of safety management through HRD interventions covering heads of shops, line managers, safety personnel & trade union leaders.

Centre for Engineering & Technology (CET)

Centre for Engineering & Technology (CET), an ISO 9001 certified organization, is the design, engineering & consultancy unit of SAIL. It has its Head Office at Ranchi, Sub Centers at Bhilai, Durgapur, Rourkela, Bokaro and an IPSS Secretariat at New Delhi for formulation of Interplant Standards for Steel Industry. As a solution provider for all project needs, CET has been rendering complete range of services not only to the steel plants under SAIL but also to various clients other than SAIL both within and outside the country. Some of the important clients other than SAIL include EGITALEC (Egypt). Ashok Steel (Nepal), Chittagong Steel Mills (Bangladesh), Birla Copper, Mukand Ltd. CET is also the nodal agency for acquisition and lateral transfer of technologies within SAIL plants.

Management Training Institute (MTI)

This apex training institute for management training in SAIL was set up in 1962 in Ranchi to fulfill the managerial development needs of senior executives of the first management training centers to be set up in the corporate sector in India.

Environment Management Division (EMD)

The Environment Management Division (EMD) is a corporate unit monitoring and facilitating the environment management and pollution control activities in the SAIL plants and units. This division, set up in 1988, has its headquarters in Kolkata. This unit is certified with QMS-ISO 9001-2000. in was set up in 1962 in Ranchi to fulfill the managerial development needs of senior executives of the first management training centers to be set up in the corporate sector in India.

Growth Division (GD)

Growth Division (GD) function as a nodal agency for manufacture and supply of various spare parts and equipment of the SAIL Plants by utilizing available in house facilities and vendor base. GD

functions focus on effective utilization of the engineering shops in the plants. Main objectives of GD are:

Effective utilization of captive engineering facilities of each steel plant.

Providing technical help to manufacture specialized equipment to cater to present requirement as well as long-term expansion and modernization. Undertake projects within SAIL plants or outside.

The Bokaro Steel Plant

Initially the Bokaro Steel Plant was located in the suburban area of Dhanbad District of Bihar and on the bank of Damodar river. Now after formation of Jharkhand State, it is in it and the District is Bokaro. Its foundation was laid down in the year 1964 and was built with the assistance of Soviets. All the Steel Plants at time were under one name Hindustan Steel Ltd. But in 1973 after merging few other Steel Plant, the name changed to Steel Authority of India Ltd. (SAIL). Bokaro Steel Plant is situated in coal belt of eastern India. At that time it was established with the aim to increase the Steel production in India as well as to curb the unemployment status of the country. and the district is Bokaro.

Holding Company

The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the Parliament on December 2, 1972. On this basis the concept of creating a holding company to manage inputs and outputs under one umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company, incorporated on January 24, 1973 with an authorized capital of Rs. 2000 crore, was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an operating company. Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial development of the country. Besides, it has immensely contributed to the development of technical and managerial expertise. It has triggered the secondary and tertiary waves of economic growth by continuously providing the inputs for the consuming industry.

JOINT VENTURES SAIL has promoted joint ventures in different areas ranging from power plant to e-commerce. The important joint ventures of the company, among others, are:

COMPANY NTPC-SAIL Power Company Pvt. Ltd

LOCATION NEW DELHI

JV PARTNER NTPC

EQUITY 50:50

PROFILE Operates & manages the captive power plants of durgapur, Rourkela & Bhilai

Bokaro Power supply company Pvt. Ltd M- Junction services Ltd. SAIL & MOIL Ferro Alloys Pvt. Ltd. Bhilai jaypee cement limited

BOLARO

DVC

50:50

Manages 302MW power generation 660tonnes per hour steam generation facilities at Bokaro steel plant.

KOLKATA

TATA Steel

50:50

Promotes e-commerce activities in steel and related areas.

BHILAI

MANGANESE ORE (INDIA) LIMITED

50:50

Production of ferro -manganese and silicon Manganese at Bhilai with furnace operation at Nandini/ Bhalai

SANTNA & BHILAI

Jaiparkash Associates Ltd.

26:74

To set up and operate a cement plant of 2.2 million tones per annum capacity at split location at satna & Bhilai , using slag generated during blast furnace .

Bokaro jaypee cement Ltd.

BOKARO

Jaiparkash Associates Ltd.

26:74

To set up and operate a cement plant of 2.1 million tones per annum capacity, utilizing generated slag during Blast furnace operation at BSL.

MEMORANDUM OF UNDERSTANDINGS to set up, develop, manage and own captive/independent power plant (s) at suitable location/s to meet future power requirements of SAIL. The scope of agreement also includes exploration of opportunities to own captive thermal coal blocks to cater to the power plant requirements. to promote a Joint Venture Company, which shall primarily provide shipping related services to SAIL for imported coking coal and also participate in world wide dry bulk shipping trade. to increase production from the existing facilities at Steel Complex Limited (SCL), Calicut and also set up, develop & manage a 50,000 TMT Rolling Mill

Larsen & Toubro Ltd.

Shipping corporation of India.

Government of Kerala

along with its balancing facilities and auxiliaries at SCL, Calicut.

POSCO

to collaborate in a wide range of strategic business and commercial areas of mutual interest. to jointly explore and develop low silica limestone mines in the Sultanate of Oman. for exploration by MECL at all SAIL mines for assessing the reserves and quality of ore available. It has already started exploratory work in Gua and Chiria mines. for equipment/spares required for modernization/expansion.

Rashtriya Ispat Nigam Ltd. (RINL) Mineral Exploration Corporation Ltd. (MECL)

Heavy Engineering Corporation (HEC) Bharat Earth Movers Limited (BEML) Rajasthan State Mines & Minerals Limited (RSMML)

for supply of crucial equipment.

for long-term supply of low-silica limestone.

IIM, Ahmedabad and knowledge sharing. Management Development Institute (MDI), Gurgaon for procurement of high power locomotives Indian Railways

BOKARO STEEL PLANT - PRODUCT BASKET Mill Capabilities

Shop Products Facility Annual Capacity Thickness range (mm) Width range Length (metre)

(,000 Tonnes)

(mm)

HSM

HR Coils/ Sheets/ Plates

Continuous Mill Shearing Line-I Shearing Line-II Slitting Line

3955 -

1.6 -16 5-10 1.6-4

900-1850 1800 1500 2.5-12 1.5-4.5

HRCF HR Sheets/ Plates HR Sheets/ Plates HR Coil CRM CR Coils/ Sheets CR Coils/ Sheets CR Coils/ Sheets, TMBP GP Coils & Sheets GC Sheets

1660 CRM-I complex CRM-II complex DCR Mill HDGL 100 170 0.63-2.5 0.63-1.6 0.22-0.8 0.3-1.6 700-1850 650-1250 650-1040 650-1250

By-products Nitration-grade Benzene Nitration-grade Toluene Light Solvent Naphtha Still Bottom Oil Hot Pressed Naphthalene Anthracene Oil Pitch Creosote Mixture Extra-hard Pitch BF Granulated Slag Hard-medium Pitch (solid/ liquid) Liquid Nitrogen Ammonium Sulphate Phenol Fraction

Special Grades of Steel Special Steel Grades Application

SAE 1541 MC 11 SPC 370/390 C 15 API X-42, X-46, X-52, X-56, X-60 (SAILAPI)

Automobile Industry Cycle Industry Cycle Industry Cycle Industry Pipe Line

SAILCOR (corrosion resistant) SAILMEDSi (Medium Silicon Steel) SAILPROP Strapping Steel (for internal use only) Full-hard Galvanised Coil Cold Rolled Medium Electrical Steel Extra-low Carbon Extra Deep Drawing (HR & CR) DMR 249A Grade Steel

Railways Heavy Electrical Winding Propeller Shaft Strapping Finished Products Extra hard roof of houses Transformer core White goods Defence Research Development Organisation (DRDO) for fabrication of Submarine parts (import substitution)

E460/E500/E550

Floating bridges for Defence. For M/S BEML; for making. (import substitution)

IS8500 Fe 540B high strength low alloy steel with UTS value in excess of 540 Mpa Low Carbon, Low Manganese, High Strength Structural Steel without microalloying (Carbon 0.10%)

Kolkata fly-over

Structural purposes. Thermo-mechanically Controlled Processing.