PROJECT REPORT

ON

STEEL AUTHORITY OF INDIA LTD. (A MAHARATAN COMPANY)

(Approved by AICTE, &'()*&'(+

ov!. o" I#d$%)

Under the guidance of: PROF.SAUD HUSSAIN

Submitted by: SEE A !U ARI"#$% RI A &HOSH S'ARNPRA(HA SAHOO ANES'E)A DAS DE(ASIS *ENA SECTION-C

DECLARATION

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Date: 26/03/2014

Sign. Of Student

PREFACE

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A0OUT THE INDUSTRY

The global steel industry has been going through major changes since 1970. China has emerged as a major producer and consumer, as has India to a lesser extent. Consolidation has been rapid in urope.

ateria+ for de,e+o-ment and .ar:

The !olume o" steel consumed has been the barometer "or measuring de!elopment and economic progress. #hether it is construction or industrial goods, steel is the basic ra$ material. %ighter metals and stronger alloys ha!e been de!eloped. &lastics and synthetics ha!e replaced steel in many areas. Steel is made "rom ores still "ound in abundance around the $orld. Technological de!elopments ha!e brought do$n the time "or trans"ormation "rom iron ore to steel to $ithin a day. !en a"ter decades o" use, it can be sent bac' to the "urnaces as scrap, melted and remade into ne$ (ualities o" steel. It is the most recycled material in the $orld. In de!eloped countries, recycling accounts "or almost hal" o" the steel produced. )nother major "eature is the continuous impro!ement o" steel grades. *al" o" today+s steel grades $ere not a!ailable ten years ago. ,ust ta'e the example o" the most commonly used steel - rods or bars, used as rein"orcement material $ith cement concrete. It used to be plain bars e!en in the sixties, then came the ribbed bars, "ollo$ed by the cold t$isted de"ormed bars and no$ it is thermo mechanically treated bars. ach de!elopment has added to the strength o" construction. introduced. The process continues.

&ro.th of the indu/try:

.lobal steel production gre$ enormously in the /0th century "rom a mere /0 million tonnes at the beginning o" the century to 701 million tonnes at the end. It is a "ully integrated iron and steel ma'er, producing both basic and special steels "or domestic construction,engineering, po$er, rail$ay, automoti!e and de"ence industries and "or sale in export mar'ets.

'or+d Stee+ Production in the 01th 2entury :

1ethlehem Steel in 1ethlehem, &ennsyl!ania $as one o" the $orld2s largest manu"acturers o" steel be"ore its /003 closure.4!er the course o" the /0th century, production o" crude steel has risen at an astounding rate, no$ "ast approaching a production le!el o" 000 million tons per year. Today, it is di""icult to imagine a $orld $ithout steel. 5uring the /0th century, the consumption o" steel increased at an a!erage annual rate o" 3.36. In 1900, the 7S) $as producing 376 o" the $orld+s steel. #ith post $ar industrial de!elopment in )sia that region no$ 8at the turn o" the /0th century9 accounts "or almost :06, $ith urope 8including the "ormer So!iet 7nion9 producing 3;6 and <orth )merica 1:.=6. Steel consumption increases $hen economies are gro$ing, as go!ernments in!est in in"rastructure and transport, and build ne$ "actories and houses. conomic recession meets $ith a dip in steel production as such in!estments "alter. I" you $ere to o!erlay the abo!e graph $ith a time sheet sho$ing major historical e!ents, the pea's and dips become meaning"ul. <ote "or example the pea's corresponding to the years o" the t$o #orld #ars, "ollo$ed each time by a dip, and soon a"ter by strong climbs as the major economies reco!ered "rom the $ar and entered ne$ periods o" prosperity and gro$th, most notably in the 19=0s and 19;0s. The trend o!er the past three decades can also be seen to be in line $ith cyclical economic trends, $ith alternating periods o" prosperity and recession.9That

$as the period $hen the steel industry de!eloped in #estern urope and the 7S) "ollo$ed by the So!iet 7nion, astern urope and ,apan. *o$e!er, steel consumption in the de!eloped countries has reached a high stable le!el and gro$th has tapered o"".)"ter being in the "ocus in the de!eloped $orld "or more than a century, attention has no$ shi"ted to the de!eloping regions. To$ards the end o" the last century, gro$th o" steel production $as in the de!eloping countries such as China, 1ra>il and India, as $ell as ne$ly de!eloped South ?orea. Steel production and consumption gre$ steadily in China in the initial years but later it pic'ed up momentum and the closing years o" the century sa$ it racing ahead o" the rest o" the $orld.

&ro.th -otentia+ of the indu/try:

)mongst the other ne$ly steel@producing countries, South ?orea has stabilised at around :;@:0 million tonnes, and 1ra>il at around 30 plus million tonnes. This brings the "ocus o" the industry to India. Considering a steel consumption o" 300 'g per man per year to be a "air le!el o" economic de!elopment, India $ill ha!e to come up to some$here around 300 million tonnes, i" it is to "ul"il its ambitions o" being a de!eloped country. That o" course is a long journey "rom the present production le!el o" around =0 million tonnes but one must consider its past be"ore coming to a conclusion about its potential. India $as producing only around a million tonnes o" steel at the time o" its independence in 19:7. 1y 1991, $hen the economy $as opened up steel production gre$ to around 1: million tonnes. Therea"ter, it doubled in the next 10 years, and then it is doubling again, maybe o!er a slightly longer span. Steel &roduction in India is expected to reach 1/: million tons by /01/ and /7= million tons by /0/0 $hich could ma'e it the second largest steel ma'er. In the de!eloped countries, the trend is on consolidation o" industry. Cross@border mergers ha!e been ta'ing place "or se!eral years. The "ocus is on technological impro!ements and ne$ products. .lobally, the steel industry became a billion tonne industry in /00:. *o$ much more it $ill gro$ $ill depend primarily on ho$ much more steel is consumed in the de!eloping countries.

Reduction in .or3force :
Steel is no more the labour@intensi!e industry it used to be. arlier, it $as o"ten associated $ith the image o" huge $or' "orce li!ing in a capti!e to$nship. )ll that has changed dramatically. ) modern steel plant employs !ery "e$ people. In South ?orea, &osco employs 10,000 people to produce /0 million tonnes. )s a rule o" thumb, one can put the direct employment potential at 1,000 per million tonnes. It could be less. *o$e!er, steel being a basic industry, it generates substantial gro$th o" both upstream and do$nstream "acilities. )ccording to some estimates one person@year o" employment in the Considering all these, total employment generation $ill be substantial.

Em-+oyment in the /tee+ indu/try #45%6 #441 and #447"01#$

)hou/and at end of year
Country Au/tria (e+gium Denmar3 Fin+and France 1974 %% 7% 0 #0 #98 1990 0# 07 # #1 %7 1996 #$ 0$ # 5 $4 2010 #0 0# # 5 $8 2011 #0 01 # 8 $8 2012 #0 01 # 5 $8 2013 #0 01 # 8 $4

FR &ermany :#; &reece Ire+and Ita+y <u=embourg Nether+and/ Portuga+ S-ain S.eden United !ingdom Euro-ean Union >ugo/+a,ia :0; 2anada United State/ (ra?i+ South Africa *a-an Re-ub+ic of !orea Au/tra+ia 'or+d Production

0$0 1 # 47 0$ 09 % 84 91 #45 447 %0 55 90# ##8 #11 %94 n@a %0 7%% :$;

#09 $ # 97 4 #5 % $7 07 9# %$% 74 9$ 01% ##9 ##0 $19 75 $1 551

87 0 1 $4 9 #0 0 0% #% $5 $17 #5 9$ #75 54 5# 0%1 77 0# 591

80 0 1 $5 9 #0 0 0$ #% $7 04$ #5 9$ #7$ 5% 51 0$1 7% 01 544

81 0 1 $4 % #0 0 00 #% $% 041 #5 99 #71 7$ 7# 00# 94 01 555

58 0 1 $4 % #0 0 00 #$ $# 081 #9 95 #9$ 94 9% 018 98 0% 584

55 0 1 $4 % #0 0 00 #$ 04 058 #9 97 #9# 7$ 97 #45 95 0# 8%8

HISTORY 0EHIND INDIAN STEEL SECTOR.

)he Indian iron and /tee+ indu/try i/ near+y a century o+d6 .ith )ata Iron A Stee+ 2o :)ataStee+; a/ the fir/t integrated /tee+ -+ant to be /et u- in #415. It .a/ the fir/t core /ector to becom-+ete+y freed from the +icen/ing regime :in #441"4#; and the -ricing and di/tributioncontro+/. )he /tee+ indu/try i/ e=-anding .or+d.ide. For a number of year/ it ha/ beenbenefiting from the e=ce-tiona++y buoyant A/ian economie/ :main+y India and 2hina;. )he economic moderni?ation -roce//e/ in the/e countrie/ are dri,ing the /har- ri/e in demandfor /tee+.

)he Ne. Indu/tria+ -o+icy ado-ted by the &o,ernment of India ha/ o-ened u- the iron and/tee+ /ector for -ri,ate in,e/tment by remo,ing it from the +i/t of indu/trie/ re/er,ed for -ub+ic /ector and e=em-ting it from com-u+/ory +icen/ing. Im-ort/ of foreign techno+ogy a/ .e++ a/ foreign direct in,e/tment are free+y -ermitted u- to certain +imit/ under an automatic route. )hi/6 a+ong .ith the other initiati,e/ ta3en by the &o,ernment ha/ gi,en a definite im-etu/ for entry6 -artici-ation and gro.th of the -ri,ate /ector in the /tee+ indu/try. 'hi+e the e=i/ting unit/ are being moderni?ed@e=-anded6 a +arge number of ne.@greenfie+d /tee+ -+ant/ ha,e a+/o come u- in different -art/ of the country ba/ed on modern6 co/t effecti,e6/tate of"the"art techno+ogie/. Soaring demand by /ector/ +i3e infra/tructure6 rea+ e/tate and automobi+e/6 at home and abroad6 ha/ -ut IndiaB/ /tee+ indu/try on the .or+d ma-. Dominating the Indian hori?on i/ /tee+ giant )ata Stee+6 .ho/e ta3eo,er of the U!"Dutch /tee+ com-any 2oru/ i/ the countryB/ bigge/t buyout. acCuired French /tee+ com-any Arce+or to create the .or+dB/ number one /tee+ com-any6 Arce+or itta+D and !orean /tee+ giant POS2O i/ -um-ing money into mine/ and /tee+ -+ant/ in Ori//a to emerge a/ one of the bigge/t /tee+ -+ant/ in the /tate. )ata Stee+ :(SE: 911%51;6 former+y 3no.n a/ )IS2O and )ata Iron and Stee+ 2om-any <imited6 i/ the .or+dB/ /e,enth +arge/t /tee+ com-any6 .ith an annua+ crude /tee+ ca-acity of $# mi++ion tonne/. It i/ the +arge/t -ri,ate /ector /tee+ com-any in India in term/ of dome/tic -roduction.

Indu/try Structure:
Indian Iron and /tee+ Indu/try can be di,ided into t.o main /ector/ Pub+ic /ector and Pri,ate /ector. Further on the ba/i/ of route/ of -roduction6 the Indian /tee+ indu/try can be di,ided into t.o ty-e/ of -roducer/.

2on/um-tion:

India2s consumption o" stainless steel is much higher at 1:per cent, compared to the global consumption o" six per cent in the last 1= years. 5omestic consumption o" "inished 8carbon9 steel is on the rise, dri!en by a boom in the automobile sector and a nation@$ide thrust on in"rastructure and real estate.

RO;TH IN STEEL SECTOR

Hi/torica+ e/timate/ of -roducti,ity gro.th in IndiaE/ iron and /tee+ /ector ,ary from indicating anim-ro,ement to a dec+ine in the /ectorE/ -roducti,ity. )he ,ariance may be traced to the time -eriod of /tudy6 /ource of data for ana+y/i/6 and ty-e of indice/ and econometric /-ecification/ u/ed for re-orting -roducti,ity gro.th. 'e deri,e both gro.th accounting and econometric e/timate/ of -roducti,ity gro.th for thi/ /ector. Our re/u+t/ /ho. that o,er the ob/er,ed -eriod from #45$"5% to #44$"4% -roducti,ity dec+ined by #.5#F a/ indicated by the )ran/+og inde=. 2a+cu+ation/ of the !endric3 and So+o. indice/ /u--ort thi/ finding. U/ing a tran/+og /-ecification the econometric ana+y/i/ re,ea+/ that technica+ -rogre// in IndiaE/ iron and /tee+ /ector ha/ been bia/ed to.ard/ the u/e of energy and materia+6 .hi+e it ha/ been ca-ita+ and +abor /a,ing. )he dec+ine in -roducti,ity .a/ cau/ed +arge+y by the -rotecti,e -o+icy regarding -rice and di/tribution of iron and /tee+ a/ .e++ a/ by +arge inefficiencie/ in -ub+ic /ector integrated /tee+ -+ant/. 'i++ the/e trend/ continue into the future6 -articu+ar+y .here energy u/e i/ concernedG o/t +i3e+y they .i++ not. en,ironmenta+ di/cu//ion/. Increa/e/ in -roducti,ity through the ado-tion of more efficient and c+eaner techno+ogie/ in the manufacturing /ector .i++ be effecti,e in merging economic6 en,ironmenta+6 and /ocia+ de,e+o-ment obHecti,e/. A hi/torica+ e=amination of -roducti,ity gro.th in IndiaE/ indu/trie/ embedded into a broader ana+y/i/ of /tructura+ com-o/ition and -o+icy change/ .i++ he+- identify -otentia+ future de,e+o-ment /trategie/ that +ead to.ard/ a more /u/tainab+e de,e+o-ment -ath. I//ue/ of -roducti,ity gro.th and -attern/ of /ub/titution in the iron and /tee+ /ector a/ .e++ a/ in other energy inten/i,e indu/trie/ in India ha,e been di/cu//ed from ,ariou/ -er/-ecti,e/.Hi/torica+ e/timate/ ,ary from indicating an im-ro,ement to a dec+ine in the /ectorE/ -roducti,ity the current change/ in /tructure and energy efficiency undergoing in the /ector. Our ana+y/i/ /ho./ that .ith the +ibera+i?ation of the iron and /tee+ /ector6 the indu/try i/ ra-id+y mo,ing to.ard/ .or+d"be/t techno+ogy6 .hich .i++ re/u+t in fe.er carbon emi//ion/ and moreefficient energy u/e in e=i/ting and future -+ant/. )he ,ariation de-end/ main+y on the time -eriod con/idered6 the /ource of data6 the ty-e of indice/ and econometric /-ecification/ u/ed for re-orting -roducti,ity gro.th. Regarding -attern/ of /ub/titution mo/t ana+y/e/ focu/ on interfue+ /ub/titution -o//ibi+itie/ in the conte=t of ri/ing

energy demand. Not much re/earch ha/ been conducted on -attern/ of /ub/titution among the -rimary and /econdary in-ut factor/: 2a-ita+6 +abor6 energy and materia+/. Ho.e,er6 ana+y?ing the u/e and /ub/titution -o//ibi+itie/ of the/e factor/ a/ .e++ a/ identifying the main dri,er/ of -roducti,ity gro.th among the/e and other factor/ i/ of /-ecia+ im-ortance for under/tanding techno+ogica+ and o,era++ de,e+o-ment of an indu/try. In thi/ -roHect .e contribute to the di/cu//ion on -roducti,ity gro.th and the ro+e of techno+ogica+ change .ithin the conte=t of g+oba+ en,ironmenta+ change. 'e .i++ introduce the iron and /tee+ indu/try in more detai+ ta3ing into account indu/try /-ecific a/-ect/ /uch a/ /tructura+ com-o/ition6 -roduction6 techno+ogie/6 energy con/um-tion .ithin -roce//e/6 en,ironmenta+ im-act/6 /ector /-ecific -o+icie/ etc. )hi/ fo++o.ing .e deri,e both /tati/tica+ and econometric e/timate/ of -roducti,ity gro.th for the iron and /tee+ /ector o,er time. For the /tati/tica+ ana+y/i/ .e ca+cu+ate -artia+ and tota+ -roducti,ity in a gro.th accounting frame.or3 .hi+e for the econometric ana+y/i/ a tran/+og co/t function a--roach i/ em-+oyed to e/timate -roducti,ity gro.th6 technica+ change bia/e/ and /ub/titution e+a/ticitie/. )he re/u+t/ .i++ then be inter-reted .ithin a broader conte=t of /tructura+ and -o+icy change/ in the /ector a/ .e++ a/ other /ector /-ecific a/-ect/. Future energy u/e and carbon emi//ion/ de-end on the +e,e+ of -roduction and the techno+ogie/ em-+oyed. Furthermore6 different economic and -o+icy /etting/ affect /tructure/ and efficiencie/ .ithin the /ector. )he fina+ /ection therefore e=amine/ the ongoing change/ in the iron and /tee+ indu/try /tructure. It .i++ com-are .or+d be/t techno+ogie/ to Indian techno+ogie/ and identify -otentia+/ and barrier/ to the ado-tion of /uch efficiency im-ro,ement/.

)he Iron and Stee+ Indu/try in 2onte=t :

Si= indu/trie/ in India ha,e been identified a/ energy inten/i,e indu/trie/: A+uminum6 cement6 ferti+i?er6 iron and /tee+6 g+a//6 and -a-er. )ogether they account for #7.8F of manufacturing ,a+ue of out-ut :IO; and con/ume $8.8F of a++ fue+/ con/umed in the manufacturing /ector. )he iron and /tee+ /ector ho+d/ a con/iderab+e /hare .ithin the/e energy inten/i,e indu/trie/. In #44$ it accounted for %7.9F of ,a+ue of out-ut .ithin the /i= indu/trie/ and for 5.8F in the manufacturing /ector. Production in the iron and /tee+ /ector ha/ been increa/ing o,er the +a/t 01 year/. O,er the /tudy -eriod #45$"#44$ rea+ IO increa/ed by an a,erage of 5.7F -.a. Fo++o.ing the ferti+i?er and cement indu/try6 iron and /tee+ /ho./ third highe/t gro.th in the grou- of energy inten/i,e indu/trie/. A/ /een in )ab+e 0.# gro.th of rea+ ,a+ue of out-ut .a/ /tab+e at around 5.8F during the -re+ibera+i?ation -eriod :#45$"#489; and decrea/ed /ignificant+y to 7.0F in the fo++o.ing -eriod of economic +ibera+i?ation# :#489"4#; accounting for +o.er than a,erage gro.th in both the grou- of /i= energy inten/i,e indu/trie/ and tota+ manufacturing. In #44#6 the +ibera+i?ation -roce// cu+minated and rea+ ,a+ue of out-ut gro.th increa/ed /ub/tantia++y by #1.0F unti+ #44$. )he iron and /tee+ /ector account/ for #$.0F of tota+ fue+/ con/umed in the manufacturing /ector.'ithin the grou- of energy inten/i,e indu/trie/6 the /hare of fue+/ con/umed -er unit of out-ut:IO; i/ +o.e/t in the iron and /tee+ /ector :##.9F;.

Fue+ co/t/ -er unit of out-ut are 05F +e// than the a,erage for the /i= energy inten/i,e indu/trie/. Ho.e,er6 fue+ co/t/ -er out-ut are /ti++ 51F higher than the a,erage of tota+ manufacturing unit fue+ co/t/. Inten/ity of the iron and /tee+ /ector in rea+ ,a+ue/ o,er time and in com-ari/on to the other /ector/. (e/ide/ ferti+i?er -roduction6 the iron and /tee+ indu/try ha/ been +ea/t energy inten/i,e not on+y in #44$ but a+mo/t o,er the .ho+e time -eriod. On+y in the ear+y year/ of the time -eriod under con/ideration iron and /tee+ -roduction .a/ re+ati,e+y more energy inten/i,e. A -ea3 can be ob/er,ed in #458@54. O,era++6 de/-ite it/ f+uctuating -attern the iron and /tee+ indu/try /ho./ a re+ati,e+y /tab+e trend in energy inten/ity. )he u-.ard trend i/ e=traordinary com-ared to other energy inten/i,e indu/trie/ that genera++y e=-erienced negati,e or ,ery +o. -o/iti,e gro.th during that -eriod.

&RAPHI2A< REPRESEN)A)ION OF &RO')H IN S)EE< SE2)OR.

2hange in Phy/ica+ Energy Inten/ity of Iariou/ Indu/trie/

Iron and Stee+ Proce//:

2urrent+y6 there are t.o main route/ for the -roduction of /tee+: -roduction of -rimary /tee+ u/ing iron ore/ and /cra- and -roduction of /econdary /tee+ u/ing /craa/ the main ra. materia+. A .ide ,ariety of /tee+ -roduct/ are -roduced by the indu/try6 ranging from /+ab/ and ingot/ to thin /heet/6 .hich are u/ed in turn by a +arge number of manufacturing indu/trie/. Stee+ -roduction reCuire/ /e,era+ /te-/ that can be accom-+i/hed .ith different -roce//e/. (oth the in-ut materia+ of each /te- and the -roce// /ub/tantia++y affect the tota+ energy con/umed during -roduction.

Ore 2oncentration and 2o3e Production:

)he fir/t /te- in the iron"ma3ing -roce// i/ the concentration and -retreating of the iron ore/. )he energy con/umed in thi/ fir/t /te- de-end/ not on+y on the -roce// u/ed but a+/o on the Cua+ity of the iron ore.

Ore Reduction:

Ore i/ either -e++eti?ed or /intered a/ -art of the -roduction -roce//. In the b+a/t furnace route6.hich account/ for mo/t of the g+oba+ iron -roduction6 co3e i/ u/ed a/ the reducing agent and -rimary fue+.

Iron

a3ing:

In the iron"ma3ing /te-6 ore i/ reduced to either -ig iron or /-onge iron. Pig iron -roduction occur/ either in b+a/t furnace/ .here co3e i/ the -rimary fue+ or in the mo/t ad,anced core= -roce// u/ing /me+t reductionD /-onge iron i/ -roduced in /ma++" /ca+e -+ant/ by direct reduction :DR; -roce//e/ u/ing /ynga/ from fo//i+ fue+/6 and it i/ reduced at tem-erature/ be+o. the me+ting -oint of iron6 u/ua++y to ambient tem-erature/. )he con,er/ion of ore into -ig iron i/ the mo/t energy"inten/i,e /tage of /tee+ ma3ing. In a con,entiona+ integrated /tee+ -+ant6 -ig iron i/ -roduced in a b+a/t furnace6 u/ing co3e in combination .ith inHected coa+6 oi+6 or ga/ to reduce the /intered or -e++eti?ed iron ore to -ig iron6.hich i/ -rinci-a++y u/ed in it/ mo+ten /tate. <ime/tone i/ added a/ a f+u=ing agent. 2o3e i/ either im-orted or i/ -roduced in co3e o,en/ either on"/ite or off"/ite. Reduction of co3e demand by inHection of coa+ or other fue+/ /uch a/ oi+ or natura+ ga/ i/ beneficia+ becau/e it reduce/ the energy con/umed for co3e ma3ing and the ca-ita+ reCuirement for co3e o,en/. )he amount of coa+ that can be inHected de-end/ on the -roce// condition/ of the b+a/t furnace and the Cua+ity of the inHected fue+. (+a/t furnace/ are o-erated at ,ariou/ /ca+e/6 ranging from the mini b+a/t furnace/ in India .ith an annua+ ca-acity of 59 3t@unit :Singh6 #44#;6 to the +arge/t furnace/ in Ru//ia .ith an annua+ ca-acity of % t@year :U+a3ho,ich6 et a+.6 #44#;. )he furnace/E high tem-erature :about #911J2; and /trong reducing en,ironment :high 2O content; -roduce mo+ten iron .ith a--ro=imate+y %F di//o+,ed carbon and /ome /i+icon6 mangane/e6 /u+fur6 and trace materia+/. (y"-roduct/ of the iron -roduced in b+a/t furnace/ inc+ude b+a/t furnace ga/e/ :.hich can be u/ed for heating -ur-o/e/;6e+ectricity :if to- ga/"-re//ure"reco,ery turbine/ are in/ta++ed;6 and /+ag :u/ed a/ bui+ding materia+;.)he 2OREK -roce// u/ing /me+t reduction -re/ent/ one of the mo/t ad,anced ironma3ing techno+ogie/ a,ai+ab+e in the .or+d. It combine/ coa+ ga/ification .ith reduction of iron o=ide/ to -roduce -ig iron and reu/ab+e ga/ a/ a by" -roduct. )he u/e of co3ing coa+ i/ unnece//ary. 2OREK techno+ogy may be beneficia+ in /a,ing energy and in,e/tment co/t/6 .hi+e reducing en,ironmenta+ -o++ution. A/ of today6 .or+d.ide6 on+y one o-erating 2OREK -+ant e=i/t/.S-onge iron6 -roduced by direct reduction :DR; -roce//e/6 ha/ different -ro-ertie/ from -ig iron.In the DR -roce//6 iron i/ -roduced by reducing the ore/ u/ing /ynga/ from different fo//i+ fue+/ :main+y oi+ or natura+ ga/D in India coa+ or ga/ ba/ed; in /ma++"/ca+e -+ant/. DR iron :or /-onge iron; /er,e/ a/ high Cua+ity a+ternati,e for /cra- in /econdary /tee+ma3ing. )he e=amination of ca-ita+ and +abor in re+ation to gro// ,a+ue added rather than gro// ,a+ue of out-ut confirm/ the re/u+t/ for ca-ita+ and +abor -roducti,ity. On+y in the +a/t /ub-eriod gro.th rate/ for &IA -roducti,itie/ differ /ub/tantia++y from Ia+ue of Out-ut -artia+ -roducti,itie/6 for ca-ita+ direction and magnitude of change .hi+e for +abor -roducti,ity on+y in magnitude.

FUTURE DE<ELOPMENT OF THE IRON AND STEEL SECTOR.

)he ongoing trend of e=-anding and moderni?ing /tee+ -roduction i/ e=-ected to maintain in the future. aHor in,e/tment and e=-an/ion -roHect/ are current+y under.ay that .i++ /ub/tantia++y increa/e the a,ai+abi+ity of /tee+ on dome/tic a/ .e++ a/ internationa+ mar3et/. 'ith the addition of t.o ne.+y /et u- integrated /tee+ -+ant/6

crude /tee+ -roduction ca-acity in the country .i++ reach $1 t by the year 0111 :a/ o--o/ed to 01.55 t a/ of #449;. Future -roduction of crude /tee+ ha/ been e/timated regre//ing crude /tee+ -roduction on a; &DPtota+ and b; &DPindu/try. &DPtota+ i/ a//umed to increa/e at it/ #441"49 trend rate of 9.%F -.a.6 .hi+e &DPindu/try i/ a//umed to gro. at 7.0F -.a. :#441"49 trend rate;. ProHection/ ba/ed on the/e a//um-tion/ a/ .e++ a/ the a,erage of the t.o -roduction e/timate/ are gi,en.Regre//ing crude /tee+ -roduction on &DPironA/tee+ /ho.ed +o.er e=-+anatory -o.er and did not yie+d di,erging -rediction/. )he de,e+o-ment of energy -rice/ i/ of -articu+ar intere/t in an energy inten/i,e indu/try +i3e the iron and /tee+ indu/try. An increa/e in energy -rice/ through -o+icy or .or+d mar3et change/ .ou+d be counterba+anced by the indu/tryE/ techno+ogica+ -rogre// to.ard/ the /a,ing/ of energy. 'ith energy -rice increa/e6 techno+ogica+ change and -roducti,ity gro.th cou+d e,en be further enhanced. )he ana+y/i/ re,ea+/ that +abor and ca-ita+ in-ut/ are com-+ementary to energy u/e. An increa/e in energy -rice/ .ou+d therefore additiona++y reduce demand for +abor and ca-ita+.Ho.e,er6 the inter"in-ut /ub/titution -o//ibi+itie/ are .ea3. )he e/timated +o. ,a+ue/ of e+a/ticitie/ -oint to +itt+e /ub/titution -o//ibi+itie/. Some of the/e mea/ure/ affected the iron and /tee+ indu/try direct+y6 /uch a/ the -romotion of /ma++ /ca+e unit/. Other/ e=erted on+y indirect inf+uence on iron and /tee+ -roduction. )he conce-t of broad banding6 for e=am-+e6 encouraged the di,er/ification of -roduction de-ending on factor/ /uch a/ mar3et demand6 ra. materia+ a,ai+abi+ity etc. Stee+ inten/i,e indu/trie/ /uch a/ the automobi+e indu/try too3 ad,antage of thi/ -o+icy change and increa/ed and di,er/ified -roduction and thu/ their demand for /tee+.

ON OIN

CHAN ES IN THE IRON AND STEEL INDUSTRY.

)he ongoing trend of e=-anding and moderni?ing /tee+ -roduction i/ e=-ected to maintain in the future. aHor in,e/tment and e=-an/ion -roHect/ are current+y under.ay that .i++ /ub/tantia++y increa/e the a,ai+abi+ity of /tee+ on dome/tic a/ .e++ a/ internationa+ mar3et/. 'ith the addition of t.o ne.+y /et u- integrated /tee+ -+ant/6

crude /tee+ -roduction ca-acity in the country .i++ reach $1 t by the year 0111 :a/ o--o/ed to 01.55 t a/ of #449;. Future -roduction of crude /tee+ ha/ been e/timated regre//ing crude /tee+ -roduction on a; &DPtota+ and b; &DPindu/try. &DPtota+ i/ a//umed to increa/e at it/ #441"49 trend rate of 9.%F -.a.6 .hi+e &DPindu/try i/ a//umed to gro. at 7.0F -.a. :#441"49 trend rate;. ProHection/ ba/ed on the/e a//um-tion/ a/ .e++ a/ the a,erage of the t.o -roduction e/timate/ are gi,en. Regre//ing crude /tee+ -roduction on &DPironA/tee+ /ho.ed +o.er e=-+anatory -o.er and did not yie+d di,erging -rediction/. )hough current+y the iron and /tee+ /ector /eem/ to be on an u-.ard -ath in a .or+d of free mar3et com-etition and -rice/6 there are /e,era+ dra.bac3/ threatening the Indian indu/try. For e=am-+e6 the /tate of techno+ogy6 de/-ite the effort/ to.ard/ moderni?ation and u-gradation6 i/ /ti++ inferior to that in other countrie/. <o. co/t/ of -rimary in-ut/ ha,e /o far +ed to +o. co/t/ of -roduction and economic ,iabi+ity of Indian /tee+. )he/e ad,antage/6 ho.e,er6 may be eroded in the near future ma3ing Indian /tee+ +e// com-etiti,e.

Pro4e2!ed Prod/2!$o# o" Iro# = S!ee3

Crude Steel Production (Mt/annum) based on

Year 2001 2005 2013

GDPtotal 28.71 35.38 45.95

GDPindustry 29.53 36.93 49.07

Average 29.12 36.15 47.51

POTENTIALS FOR ENER Y EFFICIENCY IMPRO<EMENTS.

Potentia+/ for energy efficiency im-ro,ement/ bui+d to a +arge e=tent on ongoing change/ in the iron and /tee+ /ector. )hey ari/e from im-ro,ement in in-ut factor/6 from techno+ogy con,er/ion and retrofitting a/ .e++ a/ from recyc+ing and .a/te heat reco,ery. )he -otentia+ in .a/te heat reco,ery6 for e=am-+e6 i/ immen/e. 2urrent+y6 o,er 91F of the energy u/ed in integrated /tee+ -+ant/ in India i/ +o/t. <o//e/ occur a/

e=hau/t and by -roduct ga/e/ that cou+d be u/ed for e+ectricity generation or +o. heat /team -roduction.Further -re/ent/ co/t effecti,e energy /a,ing/ mea/ure/ that ha,e e=-+icit+y been ana+y?ed for the Indian iron and /tee+ indu/try. Paybac3 -eriod/ for the in,e/tment/ that are main+y re+ated to ga/ and heat reco,ery and im-ro,ement of in-ut Cua+ity range bet.een # and #$year/. For eight out of ten mea/ure/ -aybac3 -eriod/ are +e// than 7 year/6 for fi,e in,e/tment o-tion/ e,en +e// than $.9 year/. A+though mo/t of the mea/ure/ for energy efficiency im-ro,ement are co/t effecti,e and -ro,ide net benefit/ .ithin a certain time -eriod6 on+y fe. mea/ure/ ha,e been or are current+y being im-+emented in the Indian iron and /tee+ /ector. In a ca-ita+ /carce country +i3e India ca-ita+ inten/i,e indu/trie/ genera++y focu/ on reducing ca-ita+ co/t/ rather than being concerned about energy in-ut/ that ho+d +o. /hare/ in o,era++ in-ut co/t/. In #44$"4%6 energy co/t/ in re+ation to tota+ in-ut co/t/ .ere a/ +o. a/ 7.9F. In contra/t6energy co/t/ in re+ation to -roduction e=-enditure/ .hich do not ca-ture tota+ ca-ita+ reCuirement/ accounted for $1F in #447 :)ERI6 #447;. <ac3 of di//emination of information on energy efficient techno+ogie/ a/ .e++ a/ /-ecific information on /a,ing/ and benefit/ of energy /a,ing/ -otentia+/ further contribute to the re+uctance to energy efficiency im-ro,ement. 'hi+e in the #451/ and #481/ /trict -o+icy contro+ on -rice/ and di/tribution of iron and /tee+6 a+though not nece//ari+y efficient6 -ro,ided a fi=ed -+anning /chedu+e for in,e/tment deci/ion/6 no.aday/6 in a free mar3et /y/tem return/ to in,e/tment and -rofit/ are much more uncertain. (arrier/ to energy efficiency im-ro,ement are of indian economy.

A BRIEF DESCRIPTION OF STEEL AUTHORITY OF INDIA LIMITED

SAIL STEEL AUTHORITY OF INDIA

SAIL S!ee3 A/!.or$!y o" I#d$% P%re#! Co5p%#y C%!e-ory Se2!or T%-3$#e> S3o-%# SAIL ( ov! o" I#d$%) Iro# = ,!ee3 I#d/,!r$%3 prod/2!, T.ere?, % 3$!!3e b$! o" SAIL $# everybody?, 3$"e Le%d$#- ,!ee3 5%7$#- 2o5p%#y $# I#d$% prod/2$#- b%,$2 = ,pe2$%3 ,!ee3, STP Se-5e#! Iro# = ,!ee3 5%r7e! Co#,!r/2!$o#, e#-$#eer$#-, po6er, r%$36%y, %/!o5o!$ve = de"e#,e $#d/,!r$e, Re,pe2!ed 6or3d 23%,, 2orpor%!$o# = !.e 3e%der $# I#d$%# ,!ee3 b/,$#e,, $# @/%3$!y, prod/2!$v$!y, pro"$!%b$3$!y = 2/,!o5er ,%!$,"%2!$o# S;OT A#%3y,$, (. S!ro#- e5p3oyee 6or7"or2e 6$!. over ()',''' e5p3oyee, &. Te2.#$2%3 = 5%#%-er$%3 e8per!$,e $# !.e $#d/,!ry ). S!ro#- r%6 5%!er$%3 ,/pp3y 2.%$# 5%#%-e5e#! A. S!ro#- "$#%#2$%3 re,o/r2e, o6$#- !o be$#- % ov! e#!erpr$,e +. I! .%, %# %##/%3 prod/2!$o# o" over ()5$33$o# !o##e, S!re#-!. B. P%r!#er,.$p, 6$!. NTPC, 0o7%ro S!ee3 e!2 .%, ,!re#-!.e#ed $!, 5%r7e! po,$!$o#

USP

T%r-e!

ro/p

Po,$!$o#$#-

;e%7#e,,

(. ov! %#d po3$!$2%3 $#!erve#!$o# %""e2!, oper%!$o#%3 e""$2$e#2y &. H$-.er pro"$! 5%r-$#, %re #o! %33o6ed (. E8p%#,$o# = -ro6!. &. 3ob%3$C%!$o# 6$!. !$e*/p, 6$!. $#!er#%!$o#%3 p3%yer, ). Mer-er, = A2@/$,$!$o#, (. C.%#-e $# over#5e#! po3$2$e, = e2o#o5y !re#d &. E5er-$#- = e8$,!$#- pr$v%!e ,e2!or p3%yer, ). Te2.#o3o-$2%3 deve3op5e#!, $# o/!,$de 6or3d Co5pe!$!$o# (. TATA S!ee3 &. JS; S!ee3 ). ISPAT I#d/,!r$e,

Oppor!/#$!y

T.re%!,

Co5pe!$!or,

STEEL AUTHORITY OF INDIA LIMITED.

Stee+ Authority of India <imited " A aharatna
Stee+ Authority of India <imited :SAI<; i/ the +eading /tee+"ma3ing com-any in India. It i/ a fu++y integrated iron and /tee+ ma3er6 -roducing both ba/ic and /-ecia+ /tee+/ for dome/tic con/truction6 engineering6 -o.er6 rai+.ay6 automoti,e and defence indu/trie/

and for /a+e in e=-ort mar3et/. SAI< i/ a+/o among the fi,e 2entra+ Pub+ic Sector Enter-ri/e/.

aharatna/ of the countryB/

SAI< manufacture/ and /e++/ a broad range of /tee+ -roduct/6 inc+uding hot and co+d ro++ed /heet/ and coi+/6 ga+,ani/ed /heet/6 e+ectrica+ /heet/6 /tructura+/6 rai+.ay -roduct/6 -+ate/6 bar/ and rod/6 /tain+e// /tee+ and other a++oy /tee+/. SAI< -roduce/ iron and /tee+ at fi,e integrated -+ant/ and three /-ecia+ /tee+ -+ant/6 +ocated -rinci-a++y in the ea/tern and centra+ region/ of India and /ituated c+o/e to dome/tic /ource/ of ra. materia+/6 inc+uding the 2om-anyB/ iron ore6 +ime/tone and do+omite mine/. )he com-any ha/ the di/tinction of being IndiaE/ /econd +arge/t -roducer of iron ore and of ha,ing the countryE/ /econd +arge/t mine/ net.or3. )hi/ gi,e/ SAI< a com-etiti,e edge in term/ of ca-ti,e a,ai+abi+ity of iron ore6 +ime/tone6 and do+omite .hich are in-ut/ for /tee+ ma3ing. SAI<B/ .ide range of +ong and f+at /tee+ -roduct/ are much in demand in the dome/tic a/ .e++ a/ the internationa+ mar3et. )hi/ ,ita+ re/-on/ibi+ity i/ carried out by SAI<B/ o.n 2entra+ ar3eting Organi/ation :2 O; that tran/act/ bu/ine// through it/ net.or3 of $5 (ranch Sa+e/ Office/ /-read acro// the four region/6 09 De-artmenta+ 'arehou/e/6 %0 2on/ignment Agent/ and 05 2u/tomer 2ontact Office/. 2 OE/ dome/tic mar3eting effort i/ /u--+emented by it/ e,er .idening net.or3 of rura+ dea+er/ .ho meet the demand/ of the /ma++e/t cu/tomer/ in the remote/t corner/ of the country. 'ith the tota+ number of dea+er/ o,er 0111 6 SAI<B/ .ide mar3eting /-read en/ure/ a,ai+abi+ity of Cua+ity /tee+ in ,irtua++y a++ the di/trict/ of the country. SAI<B/ Internationa+ )rade Di,i/ion : I)D;6 in Ne. De+hi" an ISO 411#:0111 accredited unit of 2 O6 underta3e/ e=-ort/ of i+d Stee+ -roduct/ and Pig Iron from SAI<E/ fi,e integrated /tee+ -+ant/. 'ith technica+ and manageria+ e=-erti/e and 3no."ho. in /tee+ ma3ing gained o,er four decade/6 SAI<B/ 2on/u+tancy Di,i/ion :SAI<2ON; at Ne. De+hi offer/ /er,ice/ and con/u+tancy to c+ient/ .or+d".ide. SAI< ha/ a .e++"eCui--ed R and D 2entre for Iron and Stee+ :RD2IS; at Ranchi .hich he+-/ to -roduce Cua+ity /tee+ and de,e+o- ne. techno+ogie/ for the /tee+ indu/try. (e/ide/6 SAI< ha/ it/ o.n in"hou/e 2entre for Engineering and )echno+ogy :2E);6 anagement )raining In/titute : )I; and Safety Organi/ation at Ranchi. Our ca-ti,e mine/ are under the contro+ of the Ra. ateria+/ Di,i/ion in !o+3ata.)he En,ironment anagement Di,i/ion and &ro.th Di,i/ion of SAI< o-erate from their headCuarter/ in !o+3ata.A+mo/t a++ our -+ant/ and maHor unit/ are ISO 2ertified.

aHor Unit/: Integrated Stee+ P+ant/:

(hi+ai Stee+ P+ant :(SP; in 2hhatti/garh Durga-ur Stee+ P+ant :DSP; in 'e/t (enga+ Rour3e+a Stee+ P+ant :RSP; in Ori//a (o3aro Stee+ P+ant :(S<; in *har3hand IIS2O Stee+ P+ant :ISP; in 'e/t (enga+

S-ecia+ Stee+ P+ant/:

A++oy Stee+/ P+ant/ :ASP; in 'e/t (enga+ Sa+em Stee+ P+ant :SSP; in )ami+ Nadu Ii/,e/,araya Iron and Stee+ P+ant :IIS<; in !arnata3a

Sub/idiary:

ahara/htr E+e3tro/me+t <imited : E<; in ahara/htra

*oint Ienture/:

N)P2 SAI< Po.er 2om-any P,t. <imited :NSP2<; : ) =0A=0 joint

!enture bet$een Steel )uthority o" India %td 8S)I%9 and <ational Thermal &o$er Corporation %td 8<T&C %td9B manages S)I%+s capti!e po$er plants at Cour'ela, 5urgapur and 1hilai $ith a combined capacity o" 01: mega$atts 8D#9. (o3aro Po.er Su--+y 2om-any P,t. <imited :(PS2<; : This =0A=0 joint !enture bet$een S)I% and the 5amodar Ealley Corporation 85EC9 is managing the 30/@D# po$er generating station and ;;0 tonnes per hour steam generation "acilities at 1o'aro Steel &lant. Hunction Ser,ice/ <imited: ) =0A=0 joint !enture bet$een S)I% and Tata SteelB promotes e@commerce acti!ities in steel and related areas. Its ne$ly added ser!ices include e@assets sales, e!ents F con"erences, coal sales F logistics, publications, etc. SAI<"(an/a+ Ser,ice 2entre <imited: A joint !enture $ith 1D# Industries %td. on :0A;0 basis "or a ser!ice centre at 1o'aro $ith the objecti!e o" adding !alue to steel. (hi+ai *P 2ement <imited: ) joint !enture company $ith ,aipra'ash )ssociates %td on /;A7: basis to set up a /./ million tonne 8DT9 slag@based cement plant at 1hilai. (o3aro *P 2ement <imited: )nother joint !enture company $ith ,aipra'ash )ssociates %td on /;A7: basis to set up a /.1 DT slag@based cement plant at 1o'aro. SAI< A OI< Ferro A++oy/ :P,t.; <imited : ) joint !enture company $ith Danganese 4re 8India9 %td on =0A=0 basis to produce "erro@manganese and silico@ manganese re(uired in production o" steel. S A ) ining 2om-any P,t. <imited: A =0A=0 joint !enture company $ith Tata Steel "or joint ac(uisition F de!elopment o" mineral depositsB carrying out mining o" minerals including exploration, de!elopment, mining and bene"iciation o" identi"ied co'ing coal bloc's. Internationa+ 2oa+ Ienture/ Pri,ate <imited: ) joint !enture companyGS&E promoted by "i!e central &S7s, !i>. S)I%, CI%, CI<%, <D5C and <T&C 8$ith respecti!ely /0.76, /0.76, 1:.36, 1:.36 and 1:.36 shareholding9 aiming to ac(uire sta'e in coal minesGbloc'sGcompanies o!erseas "or securing co'ing and thermal coal supplies. SAI< S2I Shi--ing P,t. <imitedA ) =0A=0 joint !enture $ith Shipping Corporation o" India "or pro!ision o" !arious shipping and related ser!ices to S)I% "or importing o" co'ing coal. SAI< RI)ES (enga+ 'agon Indu/try P,t. <imitedA ) =0A=0 joint !enture

$ith CIT S to manu"acture, sell, mar'et, distribute and export rail$ay $agons, including high@end specialised $agons, $agon prototypes, "abricated componentsGparts o" rail$ay !ehicles, rehabilitation o" industrial locomoti!es. SAI< S2< <imited: ) =0A=0 ,E $ith .o!ernment o" ?erala $here S)I% has management control to re!i!e the existing "acilities at Steel Complex %td, Calicut and also to set up, de!elop and manage a TDT rolling mill o" ;=,000 DT capacity.

O.ner/hi-

and

anagement:

The .o!ernment o" India o$ns about 0;6 o" S)I%2s e(uity and retains !oting control o" the Company. *o$e!er, S)I%, by !irtue o" its HDaharatna+ status, enjoys signi"icant operational and "inancial autonomy.

)he Precur/or:
S)I% traces its origin to the "ormati!e years o" an emerging nation @ India. )"ter independence the builders o" modern India $or'ed $ith a !ision @ to lay the in"rastructure "or rapid industrialisaton o" the country. The steel sector $as to propel the economic gro$th. *industan Steel &ri!ate %imited $as set up on ,anuary 19, 19=:.

E=-andingHori?on:#494"#45$;:
*industan Steel 8*S%9 $as initially designed to manage only one plant that $as coming up at Cour'ela. Ior 1hilai and 5urgapur Steel &lants, the preliminary $or' $as done by the Iron and Steel Dinistry. Irom )pril 19=7, the super!ision and control o" these t$o steel plants $ere also trans"erred to *industan Steel. The registered o""ice $as originally in <e$ 5elhi. It mo!ed to Calcutta in ,uly 19=;, and ultimately to Canchi in 5ecember 19=9. The 1 DT phases o" 1hilai and Cour'ela Steel &lants $ere completed by the end o" 5ecember 19;1. The 1 DT phase o" 5urgapur Steel &lant $as completed in ,anuary 19;/ a"ter commissioning o" the #heel and )xle plant. The crude steel production o" *S% $ent up "rom .1=0 DT 819=9@;09 to 1.; DT. ) ne$ steel company, 1o'aro Steel %imited, $as incorporated in ,anuary 19;: to construct and operate the steel plant at 1o'aro.The second phase o" 1hilai Steel &lant $as completed in September 19;7 a"ter commissioning o" the #ire Cod Dill. The last unit o" the 1.0 DT phase o" Cour'ela @ the Tandem Dill @ $as commissioned in Iebruary 19;0, and the 1.; DT stage o" 5urgapur Steel &lant $as completed in )ugust 19;9 a"ter commissioning o" the Iurnace in SDS. Thus, $ith the completion o" the /.= DT stage at 1hilai, 1.0 DT at Cour'ela and 1.; DT at 5urgapur, the total crude steel production capacity o" *S% $as raised to 3.7 DT in 19;0@;9 and subse(uently to :Dtin 197/@73. It concei!ed in 19=9. #ith the collaboration $ith 7SSC on /=.1.;= a 1.7 DT capacity steel plant at 1o'aro $as started. Its construction started on ;.:.;0.

Ho+ding2om-any:
The Dinistry o" Steel and Dines dra"ted a policy statement to e!ol!e a ne$ model "or managing industry. The policy statement $as presented to the &arliament on 5ecember /, 197/. 4n this basis the concept o" creating a holding company to manage inputs and outputs under one umbrella $as mooted. This led to the "ormation o" Steel )uthority o" India %td. The company, incorporated on ,anuary /:, 1973 $ith an authori>ed capital o" Cs. /000 crore, $as made responsible "or managing "i!e integrated steel plants at 1hilai, 1o'aro, 5urgapur, Cour'ela and 1urnpur, the )lloy Steel &lant and the Salem Steel &lant. In 1970 S)I% $as restructured as an operatingcompany. Since its inception, S)I% has been instrumental in laying a sound in"rastructure "or the industrial de!elopment o" the country. 1esides, it has immensely contributed to the de!elopment o" technical and managerial expertise. It has triggered the secondary and tertiary $a!es o" economic gro$th by continuously pro!iding the inputs

Moder#$,%!$o# = E8p%#,$o# D
S)I%, is in the process o" moderni>ing and expanding its production units, ra$ material resources and other "acilities to maintain its dominant position in the Indian steel mar'et. The objecti!e is to achie!e a production capacity o" /;./ DT&) o" *ot Detal "rom the base le!el production o" 1:.; DT&) 8/00;@07 - )ctual9. A ne. unit coming u- at ISP 4rders "or all major pac'ages o" IS& F SS& and part pac'ages o" 1S%, 1S&, CS& F 5S& xpansion ha!e been placed and these pac'ages are in !arious stages o" implementation

ObHecti,e of E=-an/ion P+an:

1006 production o" steel through 1asic 4xygen Iurnace 814I9 route 1006 processing o" steel through continuous casting Ealue addition by reduction o" semi@"inished steel )uxiliary "uel injection system in all the 1last Iurnaces State@o"@art process control computeri>ation G automation State@o"@art online testing and (uality control nergy sa!ing schemes Secondary re"ining )dherence to en!ironment norms

)ab+e for -roduction target/ :

8Dillion tonne per annum9 Item *ot Detal Crude Steel Saleable Steel 1ase Case 8/00;@079 )"ter xpansion )ctual 1:.; 13.= 1/.; /;./ 8/3.=9 /:.; 8/1.:9 /3.1 8/0./9

Iigures in brac'et indicate capacity a"ter implementation o" ongoing phase o" modernisation and expansion to be completed by /01/@/013.

Oxygen Plant at Durgapur Steel Plant

PRESENT STATUS OF SAIL UNITS

(o3aro Stee+ P+ant6 *har3hand :
It concei!ed in 19=9. #ith the collaboration $ith 7SSC on /=.1.;= a 1.7 DT capacity steel plant at 1o'aro $as started. Its construction started on ;.:.;0. Its Ist 1last Iurnace $as commissioned on /.10.7/. Today, the plant has installed capacity on : DT. The product@ mix are A *C coil, narro$ plates, sheets, CC coils F sheets, .&, .C sheets, Tin mill blac' plates, semis, etc, Its *5.% got IS4 @ 900/ certi"ication.

(hi+ai Stee+ P+ant6 2hatti/garh :

#ith the collaboration $ith 7SSC on /./.== a 1 DT capacity steel plant at 1hilai $as started. The operation started on 31st ,anuary, =9. Today, the plant has installed capacity o" : DT. The product@mix are A Cails, *ea!y structurals, Derchant products, #ire rods, &lates, Semis, etc. Its &late Dills, 1looming F 1illet Dill, Structural Dill, SDS@II, F CC5 got IS4 @ 900/ certi"ication.

Rour3e+a Stee+ P+ant6 Ori//a :

#ith the collaboration $ith .ermany on 31.1/.=3 a 0.= DT capacity steel plant at Cour'ela $as started. The Ist Co'e 4!en 1attery $as commissioned on 3.1/.=0 F 1last Iurnace on 3./.=9. Today, the plant has installed capacity o" 1.0 DT. The product@mix are A &late mill plates, *C plates F coils, CC sheet F coils, C# pipes, S# pipes, .al!anised sheets, lectrolytic Tin &lates, Silicon Steel sheets, semis.

Durga-ur Stee+ P+ant6 'e/t (enga+ :

#ith the collaboration $ith 7nited ?ingdom on 31.10.=; a 1 DT capacity steel plant at 5urgapur $as started. The Ist Co'e 4!en battery $as commissioned on 10.1/.=9. The Ist Ingot Steel $as made on /:.:.=9. The Ist stage o" expansion to 1.; DT $as completed on /:.:.;9. The product@mix are A Derchant products, Structurals, Scalps, Sleepers, #heels F )xels, Iish &lates, Semis, etc. Its Steel ma'ing complex, Derchant mill F #heel F )xel plant got IS4 @ 900/ certi"ication.

Indian Iron A Stee+ 2om-any6 (urn-ur6 'e/t (enga+ :

It $as set up in 1910 as pig iron producing unit. Today it has the installed capacity o" 0.: DT o" ingots. The product@mix are A Structurals F Cails, 1ars F rods, Semis, etc. Its Derchant F Cod mill got IS4 @ 900/ certi"ication.

A++oy Stee+ P+ant6 Durga-ur6 'e/t (enga+ :

)S& $as commissioned in ,anuary, ;= $ith an installed capacity o" 0.1 DT o" li(uid steel F 0.0; DT o" saleable steel. Today its has the installed capacity o" 0./; DT o" li(uid steel, 0./3: DT o" crude steel F 0.103 DT o" saleable steel. It is the largest alloy F special steel

producing unit in the country. The &roduct@mix are A 1looms, 1illets, 1ars, Cound edge "lats, Concast blooms, Concast slabs, &lates, Sheets, etc. The entire plant o" )S& got IS4 @ 900/ certi"ication.

Sa+em Stee+ P+ant6 )ami+ Nadu :

It $as inaugurated in Darch, 190/ Its installed capacity is 70,000 T o" Stainless steel coils F sheets. Its product@mix are A Stainless steel coils, sheets, *C carbon steel, etc. It got IS4 @ 900/ certi"ication.

Ii/,e/,araya Iron A Stee+ 2om-any6

y/ore6 !arnata3a :

It has the installed capacity o" 0.077 DT o" saleable steel o" alloy F special steel, 0.0:0 DT o" mild steel. It produces around /00 !arieties o" sophisticated alloy steel F "erro alloys. Its Derchant F Cod mill got IS4 @ 900/ certi"ication.

ahara/tra E+e3tro/me+t <imited6

ahara/tra :

It is the largest producer o" Ierro Danganese $ith the installed capacity o" 0.0;7 DT. It produces se!eral grades o" special steel, "erro alloys, lo$ carbon pig iron, etc. Its "erro alloys plant got IS4 @ 900/ certi"ication.

Ra.

ateria+ Di,i/ion6 2a+cutta6 'e/t (enga+ :

It plans "or the major ra$ materials, other than coal, "or the steel plants. It also monitors acti!ities o" capti!e mines, pollution control measures in mines, etc. It has 9 Iron 4re mines, = %ime stone mines, 3 Coal mines F dolomite mines $ith the rated capacity o" /3 DT Iron 4re, / DT %ime Stone, 0.= DT dolomite F 1 DT Coal.

Re/earch A De,e+o-ment 2enter for Iron A Stee+6 Ranchi6 (ihar:

It $as set up in 7/ to pro!ide the ne$ technological de!elopment to the S)I% plants. It got IS4 @ 9001 certi"ication.

2enter for Engineering A )echno+ogy6 Ranchi6 *har3hand :

It is an in@house consultancy organisation o" S)I% to pro!ide the technological F engineering support to S)I% plants. It got IS4 @ 9001 certi"ication.

Other Unit/ :
Corporate 4""ice, < 5elhi Central Dar'eting 4rganisation, all o!er India S)I% Consultancy 5i!ision, < 5elhi Danagement Training Institute, Canchi, ,har'hand S)I% Sa"ety 4rganisation n!ironment Danagement 5i!ision, Calcutta .ro$th 5i!ision Central &o$er Training Institute, Cour'ela, 4rissa.

THE ALUMNUS OF SAIL- CORPORATE WORLD

Our 2hairman:
Mr C.%#dr% S.e7.%r <er5% !oo7 2.%r-e o" !.e o""$2e o" C.%$r5%#, SAIL o# (( J/#e &'('. Pr$or !o !.$, %,,$-#5e#!, Mr <er5% 6%, D$re2!or (F$#%#2e) o" 0.%r%! He%vy E3e2!r$2%3, L$5$!ed (0HEL), I#d$%E, 3%r-e,! e#-$#eer$#%#d 5%#/"%2!/r$#- e#!erpr$,e $# !.e e#er-y* re3%!ed>$#"r%,!r/2!/re ,e2!or. H$, pr/de#! "$#%#2$%3 5%#%-e5e#! %#d ,!r%!e-$2 dep3oy5e#! o" ,2%r2e re,o/r2e, .%d ,!re#-!.e#ed !.e 2o5pe!$!$ve po,$!$o# o" 0HEL. A, D$re2!or>F$#%#2e o" 0HEL ,$#2e Sep!e5ber &''+, Mr <er5% %3,o .%d !.e d$,!$#2!$o# o" ,pe%r.e%d$#!.e 4o$#! ve#!/re $#$!$%!$ve, o" !.e 2o5p%#y 6$!. v%r$o/, ,!%!e ENCO,. H$, e""or!, re,/3!ed $# !.e ,$-#$#- o" "o/r ,/2. %-ree5e#!, 6$!. T%5$3 N%d/, F%r#%!%7%, M%d.y% Pr%de,. %#d M%.%r%,.!r% !.%! 6o/3d 3ever%-e !.e ,%3e o" G ,/per2r$!$2%3 !.er5%3 po6er p3%#!, o" 0HEL. A, C.%$r5%#, SAIL, Mr <er5% $, %3,o C.%$r5%# o" I#!er#%!$o#%3 Co%3 <e#!/re, L$5$!ed (IC<L) 1 % Jo$#! <e#!/re o" "$ve 3e%d$#- P/b3$2 Se2!or E#!erpr$,e, v$C. SAIL, CIL, RINL, NMDC = NTPC "or5ed 6$!. ,pe2$%3 %pprov%3 o" ov!. o" I#d$%

"or %2@/$,$!$o# o" 2o%3 %,,e!, $# over,e%, !err$!or$e,. Sp%##$#- #e%r3y &H ye%r,, Mr <er5%E, 2%reer pro"$3e %3,o 2over, ,!$#!, %, D$re2!or (F$#%#2e) o" ITI L!d., %, ro/p e#er%3 M%#%-er o" I#d$%# R%$36%y F$#%#2e Corpor%!$o#, %#d %, e#er%3 M%#%-er o" De3.$ S!o27 E82.%#-e (DSE), be,$de, e8per$e#2e o" 6or7$#- $# % F$#%#2$%3 I#,!$!/!$o# "or %bo/! #$#e ye%r,. Fe33o6 Me5ber o" !.e I#,!$!/!e o" Co5p%#y Se2re!%r$e, o" I#d$% (FCS) %#d o" !.e I#,!$!/!e o" Co,! = ;or7, A22o/#!%#!, o" I#d$% (FIC;A), Mr <er5% $, % Co55er2e po,!*-r%d/%!e 6$!. % M%,!erE, de-ree $# 0/,$#e,, Ad5$#$,!r%!$o# %#d 0%2.e3orE, de-ree $# L%6 = Le-$,3%!/re,. He .%, re2e$ved 5%#y %6%rd, d/r$#- .$, 2%reer, $#23/d$#- E0e,! CFO A6%rdE o" CN0C*T< (I $# !.e $#"r%,!r/2!/re ,e2!or "or !.e ye%r &''I*'H %#d ETop R%#7er, E82e33e#2e A6%rd "or 0e,! Pro"e,,$o#%3E "or !.e ye%r &''I. D/r$#- .$, !e#/re $# 0HEL, !.e 2o5p%#y re2e$ved !.e "$r,! pr$Ce $# EIC;AI N%!$o#%3 A6%rd "or E82e33e#2e $# 0e,! Co,! M%#%-e5e#! Pr%2!$2e,E. Re2e#!3y, Mr. <er5% .%, bee# %6%rded JI2o# o" !.e Ye%r? A6%rd by IC;AI %#d JTr$%3 03%Cer Le%der o" !.e Ye%r? by ;or3d HRD Co#-re,,. H$, #%5e pro5$#e#!3y "$-/re, %5o#- !.e !op Le%der, o" !.e I#d$%# I#d/,!ry bro/-.! o/! by M$#! %#d E2o#o5$2 T$5e, re2e#!3y. SAIL, 6.$2. .%, bee# re2e#!3y %22orded !.e ,!%!/, o" EM%.%r%!#%E by !.e over#5e#! o" I#d$%, $, 2/rre#!3y prep%r$#"or d$ve,!5e#! o" ('K o" $!, e@/$!y $# !6o !r%#2.e, %#d $, $5p3e5e#!$#- % R,. B','''*2rore 5oder#$,%!$o# = e8p%#,$o# p3%# $# $!, p3%#!, %#d 5$#e,. ;$!. Mr <er5% %! $!, .e35 %#d .$, v%,! 7#o63ed-e %#d e8per$e#2e $# ,/ppor!, SAIL $, po$,ed !o %!!%$# -re%!er .e$-.!,. SAIL, $, $# !.e pro2e,, o" 5oder#$C$#- %#d e8p%#d$#- $!, prod/2!$o# /#$!,, r%6 5%!er$%3 re,o/r2e, %#d o!.er "%2$3$!$e, !o 5%$#!%$# $!, do5$#%#! po,$!$o# $# !.e I#d$%# ,!ee3 5%r7e!. T.e ob4e2!$ve $, !o %2.$eve % prod/2!$o# 2%p%2$!y o" &B.& MTPA o" Ho! Me!%3 "ro5 !.e b%,e 3eve3 prod/2!$o# o" (A.B MTPA (&''B*'G 1 A2!/%3). S$#2e $!, $#2ep!$o#, SAIL .%, bee# $#,!r/5e#!%3 $# 3%y$#- % ,o/#d $#"r%,!r/2!/re "or !.e $#d/,!r$%3 deve3op5e#! o" !.e 2o/#!ry. 0e,$de,, $! .%, $55e#,e3y 2o#!r$b/!ed !o !.e deve3op5e#! o" !e2.#$2%3 %#d 5%#%-er$%3 e8per!$,e. I! .%, !r$--ered !.e ,e2o#d%r y %#d !er!$%ry 6%ve, o" e2o#o5$2 -ro6!. by 2o#!$#/o/,3y prov$d$#- !.e $#p/!, "or !.e 2o#,/5$#- $#d/,!ry.

DIRECTORS

Prof. Dee-a3 Nayyar and Shri A.!. &o/.ami cea/ed to be Director/ ..e.f.#1.10.01#$ :A.N.; Shri A.!. Pandey6 Director :Ra. ..e.f. 08.10.01#$. ateria+ A <ogi/tic/; cea/ed to be Director ateria+ A<ogi/tic/;

Shri !a+yan aity ha/ been a--ointed a/ Director :Ra. ..e.f. 1#.1$.01#$.

Shri E.!. (harat (hu/han6 S-ecia+ Secretary A Financia+ Ad,i/or6 ini/try of Stee+ ha/ re/igned from the Director/hi- of the 2om-any ..e.f. 04.1%.01#$. Shri S. u3herHee6 Director :2ommercia+; cea/ed to be Director ..e.f.1#.19.01#$. Shri Iinod !umar )ha3ra+6 Additiona+ Secretary A Financia+ Ad,i/or6 ini/try of Stee+ ha/ been a--ointed a/ Director ..e.f. 1%.17.01#$. Dr. Atmanand and Shri *. . #8.15.01#$. au/3ar ha,e been a--ointed a/ Director/ ..e.f.

CORPORATE

O<ERNANCE

In terms o" listing agreement $ith the Stoc' xchanges, a compliance report on Corporate .o!ernance is gi!en . ) certi"icate "rom )uditors o" the Company regarding compliance o" conditions o" Corporate .o!ernance. In terms o" %isting )greement, the 1oard has laid do$n a Code o" Conduct "or all 1oard Dembers and Senior Danagement o" the Company.The Code o" Conduct has been posted on the $ebsite o" the Company. )ll the 1oard Dembers and Senior Danagement &ersonnel ha!e a""irmed compliance $ith the Code.

0USINESS RESPONSI0ILITY REPORT

S 1I !ide its Circular CICGCI5G5I%G0G/01/ dated )ugust 13, /01/, has mandated the top l00 listed entities, based on mar'et capitali>ation o" 1S and <S , to include 1usiness Cesponsibility Ceport describing the initiati!es ta'en by the companies "rom n!ironmental, Social and .o!ernance perspecti!e.

<$,$o#
To be a respected $orld class corporation and the leader in Indian steel business in (uality, producti!ity, pro"itability and customer satis"action.

CREDO

#e build lasting relationships $ith customers based on trust and mutual bene"it. #e uphold highest ethical standards in conduct o" our business.

#e create and nurture a culture that supports "lexibility, learning and is proacti!e to change. #e chart a challenging career "or employees $ith opportunities "or ad!ancement and re$ards. #e !alue the opportunity and responsibility to ma'e a meaning"ul di""erence in people2s li!es.

RIEF !EO!RAPHICAL INFORMATION OF #

O"ARO STEEL CITY

LOCATION

Along the south bank of Damodar river on Dhanbad-Ranchi High a! at a distance of "# km from Dhanbad and $## km from Calcutta% ($# ()* ,-# )* (.# meter /average0 var!ing from .)"m to ((1m% Average 3 ."4 cm 5a6imum 3 .)" cm

LATIT&D' LON+IT&D' ALTIT&D' RAIN2ALL T'57'RAT&R' CLI5AT' ;IND DIR'CTION <OIL COLO&R O2 <OIL HILLOC= 2OR'<T +RA<<LAND TOTAL LAND AR'A 7LANT /><L0 +AR+A R'<'R@OIR RAIL;AB< +R''N >'LT 7O7&LATION <O&RC'<

5a6 3 14# C 5in 3 .(# C Hot 8 dr!9 i%e% Tro:ical <outh-;est to North-'ast Loam! u:to . to ( meters and then sand! Red9 !ello and light gra!

<aral 7ahar /()-m high9 "%" =m <outh of >okaro0 >andgora /<al forest0 About $ - " #?# of total land $$9#1"%"$ Acres .49(#,%#. Acres $9,,-%,4 Acres /<torage Ca:acit! A .4%" million m $ .9,$"%)1 Acres .9#..%41 Hectares About $%" lakhs ;ater - +arga river 8 Tenu Canal 7o er - Chandra:ura T77 /D@C09 >okaro T77 8 C77

Turnover 8 7rofit

)### :lus Crores9 $.## Crores for #1-#"

OR ANISATIONAL CHART OF SAIL

STATISTICS OF SAIL

STATISTICS OF SAIL $

SL #

'6ecutives ;orks Non-;orks Total (14# .#)# $"-#

Non-'6ecutives -(.,#$ -4$" (,"$,

Total (1(4$ 4,(" $(#),

<C 1.1-

<T $.1#

2'5AL' .$,-

'C-AR5B 4#"

7H 1(1

D7 <C .#,)

D7 <T .11#

D7 +en 4"($

$.%$%.( Turnover <AIL /in Crores0 <AIL 7rofit /in Crores0 Turnover ><L /in Crores0 ><L 7rofit /in Crores0 'm:lo!ment Cost?5an?Br Labour Cost ? T of <teel Labour 7roductivit! 5an:o er $#$44 $($() 1)$"# "#$1,

$.%$%.. $.### 1"4( )### $()#

$.%$%.# ("### (".( 4"#( ..(#

$.%$%#) .)### /-0 $#1 -(". $.. $9..94,4 $."$

.".%$1 $$,)4

.1.%$ $-#),

.$(%.$4-4,

<e:arations

(#")

(..4

.441

(11)

HUMAN RESOURCE IN SAIL (B.S.L)

HUMAN RESOURCES IN SAIL #

Developing countries of the third world have been struggling hard for their respective Industrial Development. Big and small Industrial concerns are being set up to increase production for meeting domestic demand as well as for earning foreign exchange. The bigger the Industry and the workforce the bigger is the organisational structure and pressure on the top management. It is here that personnel management renders its services by assisting the higher echelons in the administrative set up in more than one way as well as by interacting with the workforce to inculcate in there a sense of commitment to the cause of production. The study of personnel management has thus assumed unprecedented importance in the current and burning context of development administration in third world. An effective, specialised and dedicated personnel management has a vital role to play in increasing to productivity of a given Industrial concerned and thereby in contributing towards the Nations economic prosperity. Ours is a developing country with a substantial portion of her successive plan allocations earmarked for Industrialisation. Given its huge workforce, stupendous investment and sprawling network of shops and installations, Bokaro Steel Plant occupies a place of pride on the Industrial map of India. The organisational structure is geared to achieving the set targets of production. The Steel Authority of India Limited and its predecessor corporate executives have been increasingly aware that long range success in the public sector steel production hinges on the caliber of the managerial personnel. The increasing contribution of behavioural science to our understanding of human motivation and behaviour has convinced our countrys Steel Executives (both in private and public sector) that the largest single resource of increased productivity and profits is the release and direction of creative abilities and energy of the

workforce towards company goals. This is true to every organisation. If the organisation is to survive, it must design programmes to develop its human resources to their fullest capabilities and to maintain on going worker commitment.

TECHNICAL SPECIFICATIONS A0OUT SAIL

Market Size (approx.) 000T(*) Market Share ( ) (!0""#"!)

Products

Key Segments

Cold Reducing, Tube Making, LPG, $% &oi' Cold Forming, Cycle, Hamilton Poles, Automobiles etc 707 !!"#

Automobiles, Construction, Trans$ort $% P'ates % &torage o' (il)Gas)*ater etc" Automobiles, Hose Hold A$$liances, $% Sheets Construction, LPG Cylinder M'g", *agon /uilders etc" +0# .."# !+,#.".

Automobile, Cycle, Tube Making, House &% &oi' ( Sheet Forming, Hold A$$liances, Cold Hea1y + 00 !#" Fabrication,

Mac2inery, *agon)Coac2)Loco, Aril 34ui$ment, Packaging 5Petroleum6, Packaging 57on8$et6, Coated &2eets etc" Automobile, Constructions, Coated &2eets Trans$ort % &torage o' oil and 9ater, House Hold A$$liances,

)P()&

# 00

#0"#

Fabrication etc"

T*T+,

"-"./

!0

Product

Key &ompetitors
T:&C( 3ssar ;<&L);:&C(

Market Share ( )
"7 ." -"0 #"0"! S+0, 1"...

$% P'ate

:s$at :ndustries Lloyds

Product

Key &ompetitors
T:&C( :s$at :ndustries ;:&C(

Market Share ( )
!0" 0 #"# 0"7 S+0, !..2

&% Lloyds

Product

Key &ompetitors
T:&C( ;<&L);:&C( :s$at :ndustries

Market Share ( )
#+"7 "+"7 +", 0 S+0, "/

)P()& Lloyds 3ssar

A;ARDS = ACCOLADES ;ON DURIN YEAR

THE

" Jour company has been con"erred $ith xcellent Cating "or the year /011@1/ "or the 10th consecuti!e year. @ S)I% bagged SC4& )$ard "or 1est &ractices in *uman Cesource Danagement "or the year /011@1/ presented by the *on22ble &resident o" India on &ublic Sector 5ay "unction held on /;th )pril2213. @ S)I% $on 13 out o" /0 Eis$a'arma )$ards declared in the country,$hich is the highest "or any organi>ation amongst both pri!ate and public sector. @ S)I% employees $ere a$arded 11 out o" 3/ &rime Dinister22s Shram )$ards declared in the country. This is also the highest number "or any organi>ation amongst both pri!ate and public sector. @ T$o out o" the "i!e 4lympics medal $inners o" the country $ere supported by S)I% 8Sushil ?umar andJogesh$ar 5utt9. In recognition o" S)I%22s initiati!es, Cashtriya ?hel &rotsahan &uras'ar @ /01/ $as con"erred to the Company by *on22ble &resident o" India. @ Indira .andhi Cajbhasha )$ard "or the best implementation o" o""icial language in 22)22 8*indi@spea'ing9 region $as con"erred to S)I%. @S)I%22s *indi maga>ine 22Ispat 1hasha 1harti22 $as also adjudged Iirst pri>e $inner amongst the in@house journals published in 22)22 region in the country.These a$ards $ere con"erred by *on22ble &resident o" India on *indi 5i$as i.e. 1:th Sept221/. @ In the International Con!ention on Kuality Circle /01/ held at ?uala %umpur, Dalaysia during 1:th@17th 4ctober, /01/, all the six participating teams "rom S)I% $on the highest honour 83@star a$ards9 in their respecti!e categories. @ S)I% $as a$arded CII @ Sustainability )$ard /01/ LCerti"icate o" CommendationM, $hich $as gi!en by *on22ble &resident o" India on 1:th ,anuary, /013. @ )djudged as most e""icient and largest Daharatna employer at the 5alal Street In!estment ,ournal &S7 )$ards@/01/.

@ S?4C* Iinancial Inclusion )$ard "or /013 "or initiati!es in corporate social responsibility. @ Institution o" ngineers 8India9@ Industry xcellence )$ard @/01/ under the a$ard category )@Danu"acturing F &rocessing. @ Indira .andhi )$ard 8Iirst pri>e9 "or excellence in implementation o" Cajbhasha. @ 22Ispat 1hasha 1harti22@ in@house Cajbhasha journal, $on the "irst pri>e under the *ome Dinistry22s )ll India *ouse ,ournal )$ard Scheme. @ 22Sahasrabdi Cajbhasha Shield22 "rom Cashtriya *indi )cademy, Cupambara, ?ol'ata. @ It is also note$orthy to mention that Chairman, S)I% $as con"erred SC4& )$ard "or xcellence and 4utstanding contribution to the &ublic Sector Danagement@Indi!idual %eadership Category@I 8DaharatnaG<a!ratna &S s9 "or /010@11.

0.$3%$ S!ee3 P3%#! (0SP)

" &rime Dinister22s Trophy "or the tenth time "or emerging as the best per"orming steel plant in the country. @ Steel Dinister22s Trophy "or the year /010@11 and /000@09. @ CII@ITC Sustainability )$ards@/01/ @ Certi"icate o" commendation "or signi"icant achie!ement in its category.

0o7%ro S!ee3 P3%#! (0SL)

@ .reentech *C )$ards /013 8.old9 under the Category o" Training xcellence. @ .olden &eacoc' <ational Training )$ard /01/ in steel sector "or excellence in training practices. @ ,har'hand CSC )$ard in the category o" Cegulation o" Corporate Social and n!ironment 1eha!iour. @ 22.olden &eacoc' *C xcellence )$ard22 "or the year /01/.

D/r-%p/r S!ee3 P3%#! (DSP )

" Certi"icate o" Strong Commitment to xcel "rom CII@ NID 1an' under 1usiness xcellence )$ard. @ Caji! .andhi <ational Kuality )$ard /011 @ Certi"icate o" Commendation. @ .reentech Sa"ety )$ard /01/ 8.old9 and .reentech CSC )$ard /01/ 8Sil!er9 in Detal F Dining Sector. @ .reentech *C )$ard /013 8Sil!er Trophy9.

Ro/r7e3% S!ee3 P3%#! (RSP)

" )$ard "or 1est &ractices in Training and *C5@/01/ "rom IST5, *yderabad Chapter. @ 22.reentech n!ironment .old )$ard22 in the "ield o" eco@"riendly steel ma'ing. @ )$ards under three categories @ 1est CSC &ractices, Concern "or *ealth and #omen mpo$erment in the #orld CSC 5ay .lobal CSC %eadership F xcellence )$ards.

R%6 M%!er$%3, D$v$,$o# (RMD)

" <o Iatal )ccident in Collieries G Dines )$ard by the )nnual ,oint Committee on Sa"ety, *ealth F n!ironment 8,CSSI9. @ <ational Sa"ety )$ards 8Dines9 $on by ?alta Iron Dine "or %o$est Injury Ire(uency Cate and by Tulsidamar F 5alli mines "or %ongest )ccident Iree period.

A33oy S!ee3, P3%#! (ASP)

" Ispat Sura'sha &uras'ar "rom ,CSSI "or no "atalities "or t$o consecuti!e years. @ .reen Tech n!ironment xcellence 8Sil!er9 )$ard /01/.

S%3e5 S!ee3 P3%#! (SSP)

" )$ard "or xcellence in Suggestion Scheme /01/ "rom I<SS)<@ SIC. @ <ational Sustainability )$ard 8Iirst &ri>e9 "or the year /011@1/ "rom IID, ?ol'ata amongst the Secondary Steel &lants G )lloy Steel &lants category.

RDCIS
" .olden &eacoc' Inno!ation Danagement )$ard "or the year /01/.

0%3%#2e S.ee! o" S!ee3 A/!.or$!y o" I#d$%

""""""""""""""""""" in R/. 2r. """""""""""""""""""
Dar 213 Dar 21/ Dar 211 Dar 210 Dar 209

1/ mths

1/ mths

1/ mths

1/ mths 1/ mths

Sources 4" Iunds Total Share Capital (uity Share Capital Share )pplication Doney &re"erence Share Capital Ceser!es Ce!aluation Ceser!es <et$orth Secured %oans 7nsecured %oans Total 5ebt Total %iabilities :,130.=3 :,130.=3 0.00 0.00 :,130.=3 :,130.=3 0.00 0.00 :,130.:0 :,130.:0 0.00 0.00 :,130.:0 :,130.:0 :,130.:0 :,130.:0 0.00 0.00 0.00 0.00

3;,09:.11 3=,;00.79 3/,939.07 /9,10;.30 /3,0=3.70 0.00 0.00 0.00 0.00 0.00

:1,0/:.;: 39,011.3/ 37,0;9.:7 33,31;.70 /7,90:.10 0,7:;.1; 1/,7=:.:1 7,:01.91 11,013.91 0,;1=.30 0,3=1.=0 7,7==.90 1,:73.;0 0,7==.3= ;,0;=.19

/1,=00.=7 1;,097./1 /0,1;=.:9 1;,=11./= 7,=30.79 ;/,=/=./1 ==,900.=3 =7,/3:.9; :9,0/7.9= 3=,=//.09 Dar 213 Dar 21/ Dar 211 Dar 210 Dar 209

1/ mths

1/ mths

1/ mths

1/ mths 1/ mths

)pplication 4" Iunds .ross 1loc' %essA )ccum. 5epreciation <et 1loc' Capital #or' in &rogress In!estments In!entories Sundry 5ebtors Cash and 1an' 1alance Total Current )ssets %oans and )d!ances Iixed 5eposits Total C), %oans F )d!ances 5e""ered Credit Current %iabilities &ro!isions Total C% F &ro!isions <et Current )ssets Discellaneous xpenses Total )ssets :/,:;1.10 :1,3;7.19 30,/;0.;0 3=,30/.:9 3/,7/0.;9 /=,;03.70 /:,/39.01 /3,100.=: /1,700.91 /0,:=9.0; 1;,777.:0 17,1/7.30 1=,000.0; 13,;01.=0 1/,/;0.03 3=,090.0= /0,0:9.1: //,//0.:3 1=,039.03;,=::./: 710.3; ;0:.9: ;0:.1: ;;0.03 ;=/.70 9,0/7.:;10,1/1.:= 3,:93.903,0/:.3; /30.7;3:7.9:

1;,000./1 13,7:/.37 11,30/.79 :,:/:.10 3,0=0.3= :,7;1.3/ ;,:1=.70 :,1;1.30 1:3.99

/:,/0/.7: /:,919.39 1=,;00.00 1/,7=/.1/13,:93.7= ;,=:9.11 0.00 =,==;.17 ;,17=.01 =,1==.3/:,/9/.=0

0.00 17,33:.07 //,/0=.;117,000.=9

30,031.0= 30,:7=.=; 39,110.7; :0,113.0=3=,;;;.0: 0.00 0.00 0.00 0.00 0.00

1:,97;.39 1:,;0;./; 13,99:.33 13,303.;710,/01.=1 ;,71;.0; =,0//./3 =,00/.10 ;,/11.;79,:00./1

/1,;93./= /0,:/0.:9 19,07;.:3 19,=9=.3:19,;09.7/ 9,130.;0 10,0:7.07 19,/:/.33 /0,=17.711;,0=7.1/ 0.00 0.00 0.00 0.00 0.00

;/,=/=./1 ==,900.=3 =7,/3:.9; :9,0/7.9=3=,=//.09

Contingent %iabilities 1oo' Ealue 8Cs9

31,/03.03 31,03;.9/ 30,=19.00 /0,30/.:;3/,193.13 99.3/ 9;.30 09.7= 00.;; ;7.7=

8)9 Shareholding o" &romoter and &romoter .roup

819 Indian Central .o!ernment G State .o!ernment8s9 Sub Total 8/9 Foreign Total shareholding o" &romoter and &romoter .roup 8)9 819 &ublic 1 3,30:,/93,713 3,30:,/93,713 00.01 00.00 @ 1 3,30:,/93,713 3,30:,/93,713 00.01 00.00 @

3,30:,/93,713

3,30:,/93,713

00.01

00.00

Shareholding
/; 7= 13 179 /93 10,3=9,133 1//,70=,/39 /97,39=,77= /;0,773,30/ ;99,313,::9 10,//9,:33 1//,7/1,;;3 /97,393,07= /;0,7//,90/ ;99,0;7,073 0.:: /.97 7./0 ;.31 1;.93 0.:: /.97 7./0 ;.31 1;.93 @ @ @ @ @

819 In/titution/ Dutual Iunds G 7TI Iinancial Institutions G 1an's Insurance Companies Ioreign Institutional In!estors Sub Total 8/9 Non"

In/titution/
1odies Corporate Indi!iduals Indi!idual shareholders holding nominal share capital up to Cs. 1 la'h Indi!idual shareholders holding nominal share capital in excess o" 3,0:/ 1=,;/7,9;9 @ 07,/;0,/01 307,099 1=,===,:/7 @ 01,331,;/3 @ /.11 0.30 @ /.11 0.30 @ @ @

=00

1=,170,/33

1:,90:,003

0.37

0.37

Cs. 1 la'h )ny 4thers 8Speci"y9 <on Cesident Indians Trust F Ioundation Sub Total Total &ublic shareholding 819 Total 8)9O819 8C9 Shares held by Custodians and against $hich 5epository Ceceipts ha!e been issued@m 819 8/9 Sub Total Total 8)9O819O8C9 / 39;,33: :,=97 0,:0=,=39 :,7:7,1:9 3,;=0,390 1/;,:;3,9:/ 0/=,777,391 :,130,071,10: @ 0,10;,/39 :,:=0,;:9 3,;==,=90 119,970,17/ 019,0:;,0:= :,1/3,339,7=0 @ 0./0 0.11 0.09 3.0; 19.99 100.00 @ 0./0 0.11 0.09 3.0; 19.99 99.99 @ @ @ @ @ @ @ @

:,==0 :7 39;,030 39;,331 39;,33/ @

@ @ :=:,10= :,130,=/=,/09

@ @ 303,90= :,1/3,7/3,7:3

@ @ @ @

@ @ 0.01 100.00

@ @ @ @

Co#,o3$d%!ed Pro"$! = Lo,, %22o/#!

""""""""""""""""""" in R/. 2r. """""""""""""""""""

Dar 213 Dar 21/ Dar 211 Dar 210 1/ mths Income Sales Turno!er xcise 5uty <et Sales 4ther Income Stoc' )djustments Total Income xpenditure Ca$ Daterials &o$er F Iuel Cost mployee Cost 4ther Danu"acturing xpenses Selling and )dmin xpenses =0,=39.;: =,7/7.1: ::,01/.=0 71=.00 /,/9:.3: :7,0//.;: /:,1=;.=1 3,;;;./0 0,7=7.10 1,003.93 0.00 1/ mths =1,:/7.90 =,1:9.09 :;,/70.09 1,3:/.=0 1,=00.03 :9,1/0.70 /=,9=/.7= 3,30=.90 0,033.0: 1,;77.07 0.00 1/ mths :7,300.01 :,71=.0= :/,;73.7; /,03:.7; 1,=31.10 :;,/39.;/ /;,0:7.:1 3,31:.00 7,7;=.:; 1,37/.:1 @/,:9;.01 1/ mths ::,3/:.1: 3,=0;.1= :0,017.99 /,3;:./: @1,17:.09 :/,007.3: 10,109.37 3,1=0.00 =,=/7./0 900.=/ 1,:3/.07 Dar 209 1/ mths :9,:;/.:3 =,;0:.3/ :3,0=0.11 /,00/.7= 1,917.:; :7,770.3/ /:,0:=.;0 3,0//.00 0,=0/.:; ;9/.=9 @=;1.=/

Discellaneous xpenses &reoperati!e xp Capitalised Total xpenses

3,;:/.73 0.00 :/,0/;.== Dar 213 1/ mths

/,311.37 0.00 :1,3;1.01 Dar 21/ 1/ mths ;,:1;.31 7,7=0.09 770.17 ;,900.7/ 1,;0=.90 0.00 =,/9:.0/ @=.7= =,/09.07 1,;9;.1/ 3,=9/.9= 0.00 @0.1: 3,0;0.0; 1=,:09.0; 0.00 0/;.13 1:3./7 :1,30=./= 0.70 0.00 97.=0

01:./0 0.00 3;,010.3= Dar 211 1/ mths 7,30;.=1 9,:/1./7 =01.;: 0,039.;3 1,;0/.9: 0.00 7,/3;.;9 190.73 7,:3=.:/ /,:10.13 =,017./9 0.10 @0.07 :,010.:= 10,770.9: 0.00 991.30 170.:9 :1,30:.01 1/.1= 0.00 91.0:

0=0.00 @;3./3 /9,9/3.;9 Dar 210 1/ mths 9,719.:1 1/,003.;= :73.9= 11,;09.70 1,:/9.;/ 0.00 10,100.00 191.// 10,371.30 3,=/:.0: ;,0:;.:; 0.3/ 0.0/ ;,;=:.90 11,01:.3/ 0.00 1,3;3.11 /31.0: :1,30:.01 1;.=0 0.00 01.;0

1,010.;0 0.00 3;,711.97 Dar 209 1/ mths 9,0;3.;0 11,0;;.3= /=7.=; 10,000.79 1,331.== =9.;1 9,:17.;3 103.37 9,;01.00 3,3:7.00 ;,/=3.1/ 0./7 @0.0; ;,0;9.=: 1/,;;;./9 0.00 1,073.97 103.:; :1,30:.01 1=.1: 0.00 ;0.:0

4perating &ro"it &15IT Interest &15T 5epreciation 4ther #ritten 4"" &ro"it 1e"ore Tax xtra@ordinary items &1T 8&ost xtra@ord Items9 Tax Ceported <et &ro"it Dinority Interest Share 4" &G% 4" )ssociates <et &G% )"ter Dinority Interest F Share Total Ealue )ddition &re"erence 5i!idend (uity 5i!idend Corporate 5i!idend Tax &er share data 8annualised9 Shares in issue 8la'hs9 arning &er Share 8Cs9 (uity 5i!idend 869 1oo' Ealue 8Cs9

=,000./9 =,79;.09 0:;.=3 :,9:9.=; 1,=/9.;0 0.00 3,:19.00 :3.:3 3,:;3.31 1,133.91 /,3/9.:0 0.00 0.00 /,=1=.30 17,070.0: 0.00 0/;.10 1:9.:: :1,30=./= =.;: 0.00 100.0/

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CORPORATE SOCIAL RESPONSI0ILITY = SUSTAINA0LE DE<ELOPMENT

Com:an!FFs focus on social res:onsibilit! remains un avering% The :ivotal role of education9 health9 income generation and sustainable develo:ment /<D0 is the cornerstone of our Cor:orate <ocial Res:onsibilit! and <D initiatives% On the health front9 the Com:an! has established "$ 7rimar! Health Centres9 ($ Hos:itals9 4 Re:roductive 8 Child Health Centres and 4 <u:er<:ecialt! Hos:itals to :rovide s:ecialiGed and basic healthcare to more than $1 million :eo:le living in the vicinit! of its 7lants and &nits% In order to reach out to the under:rivileged9 over 1$## cam:s have been organiGed across the countr! benefitting more than ( lakh :eo:le b! :roviding free health check-u:9 :ath lab treatment9 medicine9immuniGation9 etc% in financial !ear (#.(-.$% )# numbers of 5obile 5edical &nits /55&s0? Ambulances are being run or have been :rovided to various N+Os since (##4-#,% <even Health Centres /=al!an Chikitsala!a0 are being run at :lants e6clusivel! for :roviding free medical care including medicines to :oor and need! families% In the 2inancial Bear (#.(-.$9 healthcare as :rovided to more than ,49### :eo:le through these e6clusive health centres% 'ducation has al a!s been a :riorit! area for <AIL% Com:an! o ns and maintains over .1, schools in its steel to nshi:s to :rovide modern education to over ""9### children and is :roviding assistance to over 1)( schools% <even <:ecial <chools for >7L /=al!an @id!ala!a0 at five steel :lants ith facilities of free education9 midda! meals9 uniform including shoes9 te6t books9 stationer! items9 school bag9 ater bottles and trans:ortation in some cases are running under C<R% Thestrength of students in these schools is more than ."## students%<cholarshi:s to deserving undergraduate 8 :ostgraduate engineering students9 ado:tion of na6al affected tribal children9 nearl! e6tinct >irhore tribes9 s:onsoring !ouths for Industrial Training 8 Nursing course9 etc% are the maHor ste:s taken for u:lifting :oor9 O>C9 <C9 <T9 etc% <AIL is :roviding 5id-Da! 5eal to more than ((### students in different schools of >hilai ever!da! through Aksh!a 7atra 2oundation% This scheme is being re:licated at >okaro and Rourkela in 2inancial Bear (#.$-.1% <AIL has :rovided access to over 4"%"- lakh :eo:le across 1$" villages since ince:tion b! constructing and re:airing of roads% It has :rovided access to ater infrastructure to :eo:le living in far-flung areas b! installing over 4$,. ater sources9 thereb! :roviding drinking ater access to around over 1.%$, lakh :eo:le% In order to bridge the dis:arit! bet een rural and urban areas as also to :rovide com:rehensive develo:ment of both :h!sical and social infrastructure94) villages have been identified 8 develo:ed as 5odel <teel @illages across the countr! /in eight states0% The develo:mental activities undertaken in these villages include medical 8 health services9 education9 roads 8 connectivit!9 sanitation9 communit! centres9 livelihood generation9 s:orts facilities9 etc% To :romote rene able sources of energ!9 <olar street lights ere installed and <olar Lanterns and smokeless chullahs have been distributed among the :oor and need! in different :arts of countr!% In an effort to bring the marginaliGed masses of the remote forest areas to the mainstream of develo:ment9 <AIL in association ith +ovt% of Iharkhand and

5inistr! of Rural Develo:ment9 +oI activel! :artici:ated in the develo:ment :rocess of <aranda forest9 Iharkhand% <AIL :rovided ambulances9 bic!cles9 transistors9 solar lanterns and set u: an Integrated Develo:ment Centre at Digha village in <aranda forest% @ocational training has been :rovided in areas such as Im:roved agriculture9 5ushroom cultivation9 +oater!9 7oultr!9 2isher!9 7igger!9Achar ? 7a::ad? Agarbati making9 ;elder9 2itter 8 'lectricianTraining9<e ing 8 embroider!9 <mokeless chullah making etc% as a means to livelihood in a dignified manner% @ocational Training centre for rural and unem:lo!ed !ouths - FF>hilai Is:at =aushal =utirFF 8 < a!amsiddha at >hilai9 <kill Develo:ment and <elf 'm:lo!ment Training Institute /<D<'TI0 at Durga:ur9 +arment Technician Training at <alem9 IHARCRA2T centre at >okaro and <elf 'm:lo!ment centre =IRAN at =iriburu Ore 5ines are benefitting common masses b! a! of financial inclusion?<H+?training for income generation and then em:o ering them to be :art of main stream% The <ustainable Develo:ment 7erformance Re:ort /<D7R0 for the !ear (#..-.( has been adHudged to have met the criteria of A::lication Level A b! the +lobal Re:orting Initiative /+RI09 Amsterdam% As :er the D7' +uidelines on <ustainable Develo:ment /<D09 <AIL took u: <ustainable Develo:ment /<D0 :roHects under the 5o& ith +OI for the !ear% These <D :roHects include carbon and ater foot :rinting at <AIL :lants9 biodiversit! conservation at >olani Iron Ore 5ine9 rain ater harvesting and sustainabilit! training% <AILFFs efforts as a res:onsible cor:orate citiGen in Nation building have been recogniGed b! various organiGations in the form of a ards and accolades% In the !ear9 <AIL as a arded ith <koch 2inancial Inclusion A ard-(#.$ b! <koch foundation for C<R9 +olden 7eacock National A ard -(#.( to >hilai <teel 7lant9 +reentech A ard for C<R - (#.. 8 (#.( to Durga:ur <teel 7lant9 Iharkhand <ustainabilit! A ard in October9 (#.( to ><L and +lobal C<R '6cellence 8 Leadershi: A ard in categories3 >est C<R :ractices9 ;omen 'm:o erment 8 Concern for health to Rourkela <teel 7lant% In com:liance of D7' guidelines on C<R 8 <ustainabilit!- (#.$9 the Com:an! has identified +onda district in &ttar 7radesh as FF>ack ard DistrictFF for taking u: C<R :roHects during (#.$-.1%

EN<IRONMENT MANA EMENT

<AIL along ith :roduction and :rofitabilit! gives em:hasis on environment :rotection and considers clean environment :ractices a must for its ever! activit!% <AIL Cor:orate 'nvironmental 7olic! em:hasiGes FFconducting our o:erations in an environmentall! res:onsible manner to com:l! ith a::licable regulations and striving to go be!ondFF%A number of :roactive environmental initiatives ere taken b! <AIL during the !ear9 !ielding note orth! im:rovements% The highlights are3 - Notable im:rovements in res:ect of the follo ing 'nvironmental Indices3 - 75 emission load has reduced to #%,, kg?tcs from .%- kg?tcs in (##,-#) hich is a reduction of 1"E in the last " !ears% - <:ecific ;ater Consum:tion has reduced to $%4$ m$?tcs from $%)" m$?tcs in (##,-#) hich is a reduction of more than "E in the last " !ears% - <:ecific effluent discharge from <AIL 7lants has reduced to (%((m$?tfs from (%"m$?tfs in (##,-#) hich is a reduction of more than .$E over the last " !ears% - &tilisation of >last 2urnace />20 <lag enhanced to )-E in the financial !ear (#.(-.$9 an enhancement of .-E utilisation of the >2 slag achieved over the last " !ears% - As a :art of +reening of ;arehouses Initiative9 H!derabad ;arehouse and >T<O9 @iGag ere taken u: for im:lementation of I<O .1##. 'nvironment 5anagement <!stem during the !ear and have been a arded the '5< Certification% - The 5o'29 <AIL and &NIDO have Hoined hands to im:lement a 7ol!chlorinated >i:hen!ls /7C>0 management and dis:osal :roHect at >hilai% 7C>s are highl! to6ic chemicals% &nder this :roHect9 the 7C> in electric transformers ill be treated using a::ro:riate technolog! to be brought in b! &NIDO%

0I0LIO RAPHY
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