The Hindu Business Line : BSP set to post Rs 10,000-cr turnover

DESPITE the coking coal shortage, Bhilai Steel Plant is all set to register a turnover of Rs 10,000 crore and a net profit of more than Rs 3,000 crore for the financial year 2004-05.

The plant, belonging to Steel Authority of India Ltd, has chalked out a Rs 1,000-crore investment plan for the current financial year 2005-06. This is a part of the total SAIL corporate plan for 2011-12. Total investment for BSP under this plan is Rs 9,000 crore.

Addressing a press conference on Saturday, Mr R.P. Singh, Managing Director of BSP, said the unit would have performed even better had it not been affected by coking coal shortage. In fact, BSP's dependence on imported coking coal is 80 per cent, which is the highest among SAIL units.

During 2004-05, BSP's hot metal production dropped to 4.51 mt from 4.93 mt in 2003-04. Crude steel production dropped to 4.58 mt from 4.74 mt. Similarly, saleable steel production dropped to 3.93 mt from 4.09 mt . However, total finished steel production increased marginally to 3.20 mt from 3.01 mt

Against an annual turnover of Rs 8,850 crore in 2003-04, the plant expects a turnover of more than Rs 10,000 crore in 2004-05.

BSP's net profit in 2003-04 was Rs 1,932 crore. "At this point of time I can safely say that our net profit would be well over Rs 3,000 crore," Mr Singh told reporters.

The plant has reduced its dependence on coking coal to the extent of 74 per cent by resorting to coal tar and coal dust injection in its blast furnaces and trial use of sponge iron. Cost of Australian coking coal has more than doubled. From a price of $57 per tonne (f.o.b.) in the beginning of 2004 it has jumped to $127 per tonne (f.o.b) now.

To seek faster clearance for Rowghat mines

BHILAI Steel Plant has convened a meeting on April 5, where its top brass would be meeting several governmental organisations for a faster clearance of the Rowghat mines, which is located in Bastar district of Chhattisgarh.

According to Mr R.P. Singh, Managing Director of BSP, representatives of the Botanical Survey of India, the Zoological Survey of India, the Union Ministry for Environment and Forest, the Indian Bureau of Mines and other bodies would be present in that meeting.

Meanwhile, the Dhanbad-based Central Mining Research Institute has been appointed to chalk out a mining plan for Rowghat. The institute is likely to submit its report within the next three months.

The Chhattisgarh Government is likely to hand over 2,400 hectares in Rowghat to BSP, out of which the plant can mine only up to 1,400 hectares. This mine is likely to produce 12 mt of iron ore every year. At present, BSP's annual iron ore consumption is 9 mt.

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