SAIL: AN OVERVIEW
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 one 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 Plants 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.
Formation of Steel Authority of India Limited (SAIL)
The Committee of Public Undertaking of the Fifth Lok Sabha was the first Parliamentary Committee to undertake a significant review of the question of setting up a Holding Company for steel.
In this context, it was recognized that the Public Sector had to be made more efficient in order that it might be able to contribute far more than it had to the common pool of investible surplus in the economy. Further, such a holding company could perform a number of other important functions like coordination and control of constituent units, planning long term programmes, introduction of necessary technological changes, setting up of an R & D organisation and training of managerial personnel for the Public Sector as a whole. Based on the above considerations, the proposal to set up a holding company for Steel and associated input industries was approved by the Government in January 1972. Accordingly, the formation of Steel Authority of India Limited was approved by the Government in December, 1972. The company was incorporated on January 24, 1973 with an authorised capital of Rs.2,000 crores. In 1978 SAIL was restructured as an operating company.
Present Status of SAIL
Steel Authority of India Limited (SAIL) through its five integrated steel plants at Bhilai, Bokaro, Burnpur, Durgapur and Rourkela accounts for major steel production capacity of India. Three special steel plants at Bhadravati, Durgapur and Salem produce a wide range of special steels, special alloy steels and stainless steel. MEL, Chandrapur, a subsidiary company, is one of the largest producers of bulk Ferro Alloys in the country. There is a proposal to merge it with SAIL. Today, SAIL is one of the largest corporate entities. Its innate strength lies in its technologists and professionals and a trained manpower of over 1.34 Lakh including subsidiary. It had a sales turnover of over Rs. 45,555 cores during 2008-09.
Steel Authority of India Limited – the largest steel producer in India, owns and operates eight plants – five integrated steel units and three alloy/special steel & stainless steel plants. It also owns and operates the second largest iron ore mines network in the country, for its captive use. With a turnover of US $ 10 billion, it directly employs 120,000 employees.
There are five Integrated Steel Plants: -
Bhilai Steel Plant at Bhilai (BSP) (Chhattisgarh)
Bokaro Steel Plant at Bokaro (BSL) (Jharkhand)
Rourkela Steel Plant at Rourkela (RSP) (Orissa)
Durgapur Steel Plant at Durgapur (DSP) (W.B)
IISCO Steel Plant at Burnpur (ISP) (W.B)
There are three Special Steel Plants:-
Alloy Steel Plant at Durgapur (ASP) (W.B)
Salem Steel Plant at Salem (SSP) (Tamil Nadu)
Visveswaraiya Iron & Steel plant at Bhadravati (VISP) (Karnataka)
Maharashtra Elektrosmelt Ltd. At Chandrapur (MEL) (Maharashtra)
a. SAIL Consultancy Division (SAILCON),New Delhi
b. Research & Development Centre for Iron and Steel ,Ranchi
c. Management Training Institute (MTI),Ranchi
d. Centre for Engineering and Technology (CET) Ranchi
e. SAIL Safety Organization (SSO),Ranchi
f. Central Coal Supply Organization (CCSO),Dhanbad
g. Raw Material Division (RMD),Kolkata
h. Environment Management Division (EMD),Kolkata
PRODUCT MIX OF SAIL PLANTS:- (‘000 TONNES)
Hot metal steel
Crude liquid steel
i)Semi for sale
Wide heavy plates
Electronic tin plates
Galvanised steel coils
Spiral welded pipes
2) NON FLAT PRODUCTS
Wheels and axles
Table: product mix of SAIL