22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in...

74
A PROJECT REPORT ON Comparative analysis of Indian private and Public sectors with special reference to TATA Steel and SAIL IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF BACHELOR OF MANAGEMENT STUDIES OF UNIVERSITY OF MUMBAI BY SUPRIYA KIRATKAR GUIDED BY PROF.KHUSHBOO BHATIA SUBMITTED TO K.M. AGRAWAL COLLEGE

Transcript of 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in...

Page 1: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

A

PROJECT REPORT

ON

ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo

IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF

BACHELOR OF MANAGEMENT STUDIES

OF UNIVERSITY OF MUMBAI

BY

SUPRIYA KIRATKAR

GUIDED BY

PROFKHUSHBOO BHATIA

SUBMITTED TO

KM AGRAWAL COLLEGE

A

PROJECT REPORT

ON

ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo

IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF

BACHELOR OF MANAGEMENT STUDIES

OF UNIVERSITY OF MUMBAI

BY

SUPRIYA KIRATKAR

GUIDED BY

PROFKHUSHBOO BHATIA

SUBMITTED TO

KM AGRAWAL COLLEGE

KM AGRAWAL COLLEGE OF ARTS SCIENCE amp COMMERCE KALYAN

BACHELOR OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that MS SUPRIYA S KIRATKAR Roll No 40 has satisfactorily carried out the

project work on the topic ldquoComparative analysis of Indian private and Public sectors with

special reference to TATA Steel and SAILrdquo of TYBMS in the academic year 2012-2013

Place-Kalyan

Date-________

________________ _______________

Signature of Examiner BMS Coordinator

CERTIFICATE

I PROF Khushboo Bhatia hereby certify that Ms SUPRIYA S KIRATKAR of TYBMS

ROLL NO 40 has completed project on ldquordquo in the academic year 2012-2013 ldquoComparative analysis of

Indian private and Public sectors with special reference to TATA Steel and SAIL

The information submitted is true and original to the best of my knowledge

Place Kalyan

Date

___________________

Signature of Project Guide

DECLARATION

I hereby declare that the project entitled ldquoComparative analysis of Private and Public sector steel

companies with special reference to TATA Steel and SAILrdquo submitted to KMAGRAWAL college of

Management in partial fulfillment for the Award of Master of Management Studies of University of Mumbai

is my Original work and does not form any part of previously conducted projects

This information has been used purely for academic purpose

SUPRIYA KIRATKAR

BMS (Marketing Management)

Date

Place Mumbai

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my guide PROF Khushboo Bhatia for his exemplary guidance monitoring and constant encouragement throughout the course of this thesis The blessing help and guidance given by him time to time shall carry me a long way in the journey of life on which I am about to embark

I also take this opportunity to express a deep sense of gratitude to TATA STEEL for their her cordial support valuable information and guidance which helped me in completing this task through various stages

I am obliged to staff members of TATA STEEL for the valuable information provided by them in their respective fields I am grateful for their cooperation during the period of my assignment

Lastly I thank almighty my parents brother sisters and friends for their constant encouragement without which this assignment would not be possible

Name

SUPRIYA KIRATKAR

CONTENTS

1) SUMMARY

2) INTRODUCTION

a) What is Private limited and Public limitedb) Indian steel Industry c) World Steel Industry An Overviewd) Private sector companies in Indiae) Public sector companies in India

3) OBJECTIVES

4) RESEARCH METHODOLOGY

a) Research designb) Data collection method

5) DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of Indiaa) Productionb) Financialsc) Research and Developmentd) Environmente) Workforce and Welfare of Societyf) Technologyg) Safety measures

Measures taken by Indian government to improve the industryNational Steel Policy 2005

6) FINDINGS

7) CONCLUSION

8) BIBLIOGRAPHY

EXECUTIVE SUMMARY

The research ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics of a

particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

1 However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

2 Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

3 Public sector has increased its profit over the year particularly in 2006-07

4 Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

5 Public sector has undergone retrenchment for the employees and improved has its labor

productivity but it is still lacking behind as compared to private sector

6 SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

7 Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

INTRODUCTION

World Steel industry An overview

Steel the recycled material is one of the top products in the manufacturing sector of the world

The Asian countries have their respective dominance in the production of the steel all over the world

India being one among the fastest growing economies of the world has been considered as one of the

potential global steel hub internationally Over the years particularly after the adoption of the liberalization

policies all over the world the World steel industry is growing very fast

Steel Industry is a booming industry in the whole world The increasing demand for it was mainly

generated by the development projects that have been going on along the world especially the infrastructural

works and real estate projects that has been on the boom around the developing countries Steel Industry was

till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with

the Indian steel companies on an acquisition spree In the last one year the world has seen two big Mergers

amp Acquisitions deals to take place-

The Mittal Steel listed in Holland has acquired the worlds largest steel company called Arcelor

Steel to become the worlds largest producer of Steel named Arcelor-Mittal

Tata Steel of India or TISCO (as listed in BSE) has acquired the worlds fifth largest steel company

Corus with the highest ever stock price

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with

a strong financial condition The increasing needs of steel by the developing countries for its infrastructural

projects have pushed the companies in this industry near their operative capacity

The most significant growth that can be seen in the Steel Industry has been observed during the period

1960 to 1974 when the consumption of steel around the whole world doubled Between these years the rate

at which the Steel Industry grew has been recorded to be 55 This roaring market saw a phase of

deceleration from the year 1975 which continued till 1982 After this period the continuous fall slowed

down and again started its upward movement from the early 1990s

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 2: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

A

PROJECT REPORT

ON

ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo

IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF

BACHELOR OF MANAGEMENT STUDIES

OF UNIVERSITY OF MUMBAI

BY

SUPRIYA KIRATKAR

GUIDED BY

PROFKHUSHBOO BHATIA

SUBMITTED TO

KM AGRAWAL COLLEGE

KM AGRAWAL COLLEGE OF ARTS SCIENCE amp COMMERCE KALYAN

BACHELOR OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that MS SUPRIYA S KIRATKAR Roll No 40 has satisfactorily carried out the

project work on the topic ldquoComparative analysis of Indian private and Public sectors with

special reference to TATA Steel and SAILrdquo of TYBMS in the academic year 2012-2013

Place-Kalyan

Date-________

________________ _______________

Signature of Examiner BMS Coordinator

CERTIFICATE

I PROF Khushboo Bhatia hereby certify that Ms SUPRIYA S KIRATKAR of TYBMS

ROLL NO 40 has completed project on ldquordquo in the academic year 2012-2013 ldquoComparative analysis of

Indian private and Public sectors with special reference to TATA Steel and SAIL

The information submitted is true and original to the best of my knowledge

Place Kalyan

Date

___________________

Signature of Project Guide

DECLARATION

I hereby declare that the project entitled ldquoComparative analysis of Private and Public sector steel

companies with special reference to TATA Steel and SAILrdquo submitted to KMAGRAWAL college of

Management in partial fulfillment for the Award of Master of Management Studies of University of Mumbai

is my Original work and does not form any part of previously conducted projects

This information has been used purely for academic purpose

SUPRIYA KIRATKAR

BMS (Marketing Management)

Date

Place Mumbai

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my guide PROF Khushboo Bhatia for his exemplary guidance monitoring and constant encouragement throughout the course of this thesis The blessing help and guidance given by him time to time shall carry me a long way in the journey of life on which I am about to embark

I also take this opportunity to express a deep sense of gratitude to TATA STEEL for their her cordial support valuable information and guidance which helped me in completing this task through various stages

I am obliged to staff members of TATA STEEL for the valuable information provided by them in their respective fields I am grateful for their cooperation during the period of my assignment

Lastly I thank almighty my parents brother sisters and friends for their constant encouragement without which this assignment would not be possible

Name

SUPRIYA KIRATKAR

CONTENTS

1) SUMMARY

2) INTRODUCTION

a) What is Private limited and Public limitedb) Indian steel Industry c) World Steel Industry An Overviewd) Private sector companies in Indiae) Public sector companies in India

3) OBJECTIVES

4) RESEARCH METHODOLOGY

a) Research designb) Data collection method

5) DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of Indiaa) Productionb) Financialsc) Research and Developmentd) Environmente) Workforce and Welfare of Societyf) Technologyg) Safety measures

Measures taken by Indian government to improve the industryNational Steel Policy 2005

6) FINDINGS

7) CONCLUSION

8) BIBLIOGRAPHY

EXECUTIVE SUMMARY

The research ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics of a

particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

1 However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

2 Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

3 Public sector has increased its profit over the year particularly in 2006-07

4 Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

5 Public sector has undergone retrenchment for the employees and improved has its labor

productivity but it is still lacking behind as compared to private sector

6 SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

7 Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

INTRODUCTION

World Steel industry An overview

Steel the recycled material is one of the top products in the manufacturing sector of the world

The Asian countries have their respective dominance in the production of the steel all over the world

India being one among the fastest growing economies of the world has been considered as one of the

potential global steel hub internationally Over the years particularly after the adoption of the liberalization

policies all over the world the World steel industry is growing very fast

Steel Industry is a booming industry in the whole world The increasing demand for it was mainly

generated by the development projects that have been going on along the world especially the infrastructural

works and real estate projects that has been on the boom around the developing countries Steel Industry was

till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with

the Indian steel companies on an acquisition spree In the last one year the world has seen two big Mergers

amp Acquisitions deals to take place-

The Mittal Steel listed in Holland has acquired the worlds largest steel company called Arcelor

Steel to become the worlds largest producer of Steel named Arcelor-Mittal

Tata Steel of India or TISCO (as listed in BSE) has acquired the worlds fifth largest steel company

Corus with the highest ever stock price

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with

a strong financial condition The increasing needs of steel by the developing countries for its infrastructural

projects have pushed the companies in this industry near their operative capacity

The most significant growth that can be seen in the Steel Industry has been observed during the period

1960 to 1974 when the consumption of steel around the whole world doubled Between these years the rate

at which the Steel Industry grew has been recorded to be 55 This roaring market saw a phase of

deceleration from the year 1975 which continued till 1982 After this period the continuous fall slowed

down and again started its upward movement from the early 1990s

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 3: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

KM AGRAWAL COLLEGE OF ARTS SCIENCE amp COMMERCE KALYAN

BACHELOR OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that MS SUPRIYA S KIRATKAR Roll No 40 has satisfactorily carried out the

project work on the topic ldquoComparative analysis of Indian private and Public sectors with

special reference to TATA Steel and SAILrdquo of TYBMS in the academic year 2012-2013

Place-Kalyan

Date-________

________________ _______________

Signature of Examiner BMS Coordinator

CERTIFICATE

I PROF Khushboo Bhatia hereby certify that Ms SUPRIYA S KIRATKAR of TYBMS

ROLL NO 40 has completed project on ldquordquo in the academic year 2012-2013 ldquoComparative analysis of

Indian private and Public sectors with special reference to TATA Steel and SAIL

The information submitted is true and original to the best of my knowledge

Place Kalyan

Date

___________________

Signature of Project Guide

DECLARATION

I hereby declare that the project entitled ldquoComparative analysis of Private and Public sector steel

companies with special reference to TATA Steel and SAILrdquo submitted to KMAGRAWAL college of

Management in partial fulfillment for the Award of Master of Management Studies of University of Mumbai

is my Original work and does not form any part of previously conducted projects

This information has been used purely for academic purpose

SUPRIYA KIRATKAR

BMS (Marketing Management)

Date

Place Mumbai

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my guide PROF Khushboo Bhatia for his exemplary guidance monitoring and constant encouragement throughout the course of this thesis The blessing help and guidance given by him time to time shall carry me a long way in the journey of life on which I am about to embark

I also take this opportunity to express a deep sense of gratitude to TATA STEEL for their her cordial support valuable information and guidance which helped me in completing this task through various stages

I am obliged to staff members of TATA STEEL for the valuable information provided by them in their respective fields I am grateful for their cooperation during the period of my assignment

Lastly I thank almighty my parents brother sisters and friends for their constant encouragement without which this assignment would not be possible

Name

SUPRIYA KIRATKAR

CONTENTS

1) SUMMARY

2) INTRODUCTION

a) What is Private limited and Public limitedb) Indian steel Industry c) World Steel Industry An Overviewd) Private sector companies in Indiae) Public sector companies in India

3) OBJECTIVES

4) RESEARCH METHODOLOGY

a) Research designb) Data collection method

5) DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of Indiaa) Productionb) Financialsc) Research and Developmentd) Environmente) Workforce and Welfare of Societyf) Technologyg) Safety measures

Measures taken by Indian government to improve the industryNational Steel Policy 2005

6) FINDINGS

7) CONCLUSION

8) BIBLIOGRAPHY

EXECUTIVE SUMMARY

The research ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics of a

particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

1 However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

2 Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

3 Public sector has increased its profit over the year particularly in 2006-07

4 Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

5 Public sector has undergone retrenchment for the employees and improved has its labor

productivity but it is still lacking behind as compared to private sector

6 SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

7 Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

INTRODUCTION

World Steel industry An overview

Steel the recycled material is one of the top products in the manufacturing sector of the world

The Asian countries have their respective dominance in the production of the steel all over the world

India being one among the fastest growing economies of the world has been considered as one of the

potential global steel hub internationally Over the years particularly after the adoption of the liberalization

policies all over the world the World steel industry is growing very fast

Steel Industry is a booming industry in the whole world The increasing demand for it was mainly

generated by the development projects that have been going on along the world especially the infrastructural

works and real estate projects that has been on the boom around the developing countries Steel Industry was

till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with

the Indian steel companies on an acquisition spree In the last one year the world has seen two big Mergers

amp Acquisitions deals to take place-

The Mittal Steel listed in Holland has acquired the worlds largest steel company called Arcelor

Steel to become the worlds largest producer of Steel named Arcelor-Mittal

Tata Steel of India or TISCO (as listed in BSE) has acquired the worlds fifth largest steel company

Corus with the highest ever stock price

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with

a strong financial condition The increasing needs of steel by the developing countries for its infrastructural

projects have pushed the companies in this industry near their operative capacity

The most significant growth that can be seen in the Steel Industry has been observed during the period

1960 to 1974 when the consumption of steel around the whole world doubled Between these years the rate

at which the Steel Industry grew has been recorded to be 55 This roaring market saw a phase of

deceleration from the year 1975 which continued till 1982 After this period the continuous fall slowed

down and again started its upward movement from the early 1990s

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 4: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

CERTIFICATE

I PROF Khushboo Bhatia hereby certify that Ms SUPRIYA S KIRATKAR of TYBMS

ROLL NO 40 has completed project on ldquordquo in the academic year 2012-2013 ldquoComparative analysis of

Indian private and Public sectors with special reference to TATA Steel and SAIL

The information submitted is true and original to the best of my knowledge

Place Kalyan

Date

___________________

Signature of Project Guide

DECLARATION

I hereby declare that the project entitled ldquoComparative analysis of Private and Public sector steel

companies with special reference to TATA Steel and SAILrdquo submitted to KMAGRAWAL college of

Management in partial fulfillment for the Award of Master of Management Studies of University of Mumbai

is my Original work and does not form any part of previously conducted projects

This information has been used purely for academic purpose

SUPRIYA KIRATKAR

BMS (Marketing Management)

Date

Place Mumbai

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my guide PROF Khushboo Bhatia for his exemplary guidance monitoring and constant encouragement throughout the course of this thesis The blessing help and guidance given by him time to time shall carry me a long way in the journey of life on which I am about to embark

I also take this opportunity to express a deep sense of gratitude to TATA STEEL for their her cordial support valuable information and guidance which helped me in completing this task through various stages

I am obliged to staff members of TATA STEEL for the valuable information provided by them in their respective fields I am grateful for their cooperation during the period of my assignment

Lastly I thank almighty my parents brother sisters and friends for their constant encouragement without which this assignment would not be possible

Name

SUPRIYA KIRATKAR

CONTENTS

1) SUMMARY

2) INTRODUCTION

a) What is Private limited and Public limitedb) Indian steel Industry c) World Steel Industry An Overviewd) Private sector companies in Indiae) Public sector companies in India

3) OBJECTIVES

4) RESEARCH METHODOLOGY

a) Research designb) Data collection method

5) DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of Indiaa) Productionb) Financialsc) Research and Developmentd) Environmente) Workforce and Welfare of Societyf) Technologyg) Safety measures

Measures taken by Indian government to improve the industryNational Steel Policy 2005

6) FINDINGS

7) CONCLUSION

8) BIBLIOGRAPHY

EXECUTIVE SUMMARY

The research ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics of a

particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

1 However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

2 Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

3 Public sector has increased its profit over the year particularly in 2006-07

4 Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

5 Public sector has undergone retrenchment for the employees and improved has its labor

productivity but it is still lacking behind as compared to private sector

6 SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

7 Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

INTRODUCTION

World Steel industry An overview

Steel the recycled material is one of the top products in the manufacturing sector of the world

The Asian countries have their respective dominance in the production of the steel all over the world

India being one among the fastest growing economies of the world has been considered as one of the

potential global steel hub internationally Over the years particularly after the adoption of the liberalization

policies all over the world the World steel industry is growing very fast

Steel Industry is a booming industry in the whole world The increasing demand for it was mainly

generated by the development projects that have been going on along the world especially the infrastructural

works and real estate projects that has been on the boom around the developing countries Steel Industry was

till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with

the Indian steel companies on an acquisition spree In the last one year the world has seen two big Mergers

amp Acquisitions deals to take place-

The Mittal Steel listed in Holland has acquired the worlds largest steel company called Arcelor

Steel to become the worlds largest producer of Steel named Arcelor-Mittal

Tata Steel of India or TISCO (as listed in BSE) has acquired the worlds fifth largest steel company

Corus with the highest ever stock price

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with

a strong financial condition The increasing needs of steel by the developing countries for its infrastructural

projects have pushed the companies in this industry near their operative capacity

The most significant growth that can be seen in the Steel Industry has been observed during the period

1960 to 1974 when the consumption of steel around the whole world doubled Between these years the rate

at which the Steel Industry grew has been recorded to be 55 This roaring market saw a phase of

deceleration from the year 1975 which continued till 1982 After this period the continuous fall slowed

down and again started its upward movement from the early 1990s

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 5: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

DECLARATION

I hereby declare that the project entitled ldquoComparative analysis of Private and Public sector steel

companies with special reference to TATA Steel and SAILrdquo submitted to KMAGRAWAL college of

Management in partial fulfillment for the Award of Master of Management Studies of University of Mumbai

is my Original work and does not form any part of previously conducted projects

This information has been used purely for academic purpose

SUPRIYA KIRATKAR

BMS (Marketing Management)

Date

Place Mumbai

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my guide PROF Khushboo Bhatia for his exemplary guidance monitoring and constant encouragement throughout the course of this thesis The blessing help and guidance given by him time to time shall carry me a long way in the journey of life on which I am about to embark

I also take this opportunity to express a deep sense of gratitude to TATA STEEL for their her cordial support valuable information and guidance which helped me in completing this task through various stages

I am obliged to staff members of TATA STEEL for the valuable information provided by them in their respective fields I am grateful for their cooperation during the period of my assignment

Lastly I thank almighty my parents brother sisters and friends for their constant encouragement without which this assignment would not be possible

Name

SUPRIYA KIRATKAR

CONTENTS

1) SUMMARY

2) INTRODUCTION

a) What is Private limited and Public limitedb) Indian steel Industry c) World Steel Industry An Overviewd) Private sector companies in Indiae) Public sector companies in India

3) OBJECTIVES

4) RESEARCH METHODOLOGY

a) Research designb) Data collection method

5) DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of Indiaa) Productionb) Financialsc) Research and Developmentd) Environmente) Workforce and Welfare of Societyf) Technologyg) Safety measures

Measures taken by Indian government to improve the industryNational Steel Policy 2005

6) FINDINGS

7) CONCLUSION

8) BIBLIOGRAPHY

EXECUTIVE SUMMARY

The research ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics of a

particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

1 However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

2 Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

3 Public sector has increased its profit over the year particularly in 2006-07

4 Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

5 Public sector has undergone retrenchment for the employees and improved has its labor

productivity but it is still lacking behind as compared to private sector

6 SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

7 Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

INTRODUCTION

World Steel industry An overview

Steel the recycled material is one of the top products in the manufacturing sector of the world

The Asian countries have their respective dominance in the production of the steel all over the world

India being one among the fastest growing economies of the world has been considered as one of the

potential global steel hub internationally Over the years particularly after the adoption of the liberalization

policies all over the world the World steel industry is growing very fast

Steel Industry is a booming industry in the whole world The increasing demand for it was mainly

generated by the development projects that have been going on along the world especially the infrastructural

works and real estate projects that has been on the boom around the developing countries Steel Industry was

till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with

the Indian steel companies on an acquisition spree In the last one year the world has seen two big Mergers

amp Acquisitions deals to take place-

The Mittal Steel listed in Holland has acquired the worlds largest steel company called Arcelor

Steel to become the worlds largest producer of Steel named Arcelor-Mittal

Tata Steel of India or TISCO (as listed in BSE) has acquired the worlds fifth largest steel company

Corus with the highest ever stock price

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with

a strong financial condition The increasing needs of steel by the developing countries for its infrastructural

projects have pushed the companies in this industry near their operative capacity

The most significant growth that can be seen in the Steel Industry has been observed during the period

1960 to 1974 when the consumption of steel around the whole world doubled Between these years the rate

at which the Steel Industry grew has been recorded to be 55 This roaring market saw a phase of

deceleration from the year 1975 which continued till 1982 After this period the continuous fall slowed

down and again started its upward movement from the early 1990s

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 6: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my guide PROF Khushboo Bhatia for his exemplary guidance monitoring and constant encouragement throughout the course of this thesis The blessing help and guidance given by him time to time shall carry me a long way in the journey of life on which I am about to embark

I also take this opportunity to express a deep sense of gratitude to TATA STEEL for their her cordial support valuable information and guidance which helped me in completing this task through various stages

I am obliged to staff members of TATA STEEL for the valuable information provided by them in their respective fields I am grateful for their cooperation during the period of my assignment

Lastly I thank almighty my parents brother sisters and friends for their constant encouragement without which this assignment would not be possible

Name

SUPRIYA KIRATKAR

CONTENTS

1) SUMMARY

2) INTRODUCTION

a) What is Private limited and Public limitedb) Indian steel Industry c) World Steel Industry An Overviewd) Private sector companies in Indiae) Public sector companies in India

3) OBJECTIVES

4) RESEARCH METHODOLOGY

a) Research designb) Data collection method

5) DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of Indiaa) Productionb) Financialsc) Research and Developmentd) Environmente) Workforce and Welfare of Societyf) Technologyg) Safety measures

Measures taken by Indian government to improve the industryNational Steel Policy 2005

6) FINDINGS

7) CONCLUSION

8) BIBLIOGRAPHY

EXECUTIVE SUMMARY

The research ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics of a

particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

1 However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

2 Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

3 Public sector has increased its profit over the year particularly in 2006-07

4 Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

5 Public sector has undergone retrenchment for the employees and improved has its labor

productivity but it is still lacking behind as compared to private sector

6 SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

7 Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

INTRODUCTION

World Steel industry An overview

Steel the recycled material is one of the top products in the manufacturing sector of the world

The Asian countries have their respective dominance in the production of the steel all over the world

India being one among the fastest growing economies of the world has been considered as one of the

potential global steel hub internationally Over the years particularly after the adoption of the liberalization

policies all over the world the World steel industry is growing very fast

Steel Industry is a booming industry in the whole world The increasing demand for it was mainly

generated by the development projects that have been going on along the world especially the infrastructural

works and real estate projects that has been on the boom around the developing countries Steel Industry was

till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with

the Indian steel companies on an acquisition spree In the last one year the world has seen two big Mergers

amp Acquisitions deals to take place-

The Mittal Steel listed in Holland has acquired the worlds largest steel company called Arcelor

Steel to become the worlds largest producer of Steel named Arcelor-Mittal

Tata Steel of India or TISCO (as listed in BSE) has acquired the worlds fifth largest steel company

Corus with the highest ever stock price

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with

a strong financial condition The increasing needs of steel by the developing countries for its infrastructural

projects have pushed the companies in this industry near their operative capacity

The most significant growth that can be seen in the Steel Industry has been observed during the period

1960 to 1974 when the consumption of steel around the whole world doubled Between these years the rate

at which the Steel Industry grew has been recorded to be 55 This roaring market saw a phase of

deceleration from the year 1975 which continued till 1982 After this period the continuous fall slowed

down and again started its upward movement from the early 1990s

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 7: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

CONTENTS

1) SUMMARY

2) INTRODUCTION

a) What is Private limited and Public limitedb) Indian steel Industry c) World Steel Industry An Overviewd) Private sector companies in Indiae) Public sector companies in India

3) OBJECTIVES

4) RESEARCH METHODOLOGY

a) Research designb) Data collection method

5) DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of Indiaa) Productionb) Financialsc) Research and Developmentd) Environmente) Workforce and Welfare of Societyf) Technologyg) Safety measures

Measures taken by Indian government to improve the industryNational Steel Policy 2005

6) FINDINGS

7) CONCLUSION

8) BIBLIOGRAPHY

EXECUTIVE SUMMARY

The research ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics of a

particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

1 However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

2 Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

3 Public sector has increased its profit over the year particularly in 2006-07

4 Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

5 Public sector has undergone retrenchment for the employees and improved has its labor

productivity but it is still lacking behind as compared to private sector

6 SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

7 Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

INTRODUCTION

World Steel industry An overview

Steel the recycled material is one of the top products in the manufacturing sector of the world

The Asian countries have their respective dominance in the production of the steel all over the world

India being one among the fastest growing economies of the world has been considered as one of the

potential global steel hub internationally Over the years particularly after the adoption of the liberalization

policies all over the world the World steel industry is growing very fast

Steel Industry is a booming industry in the whole world The increasing demand for it was mainly

generated by the development projects that have been going on along the world especially the infrastructural

works and real estate projects that has been on the boom around the developing countries Steel Industry was

till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with

the Indian steel companies on an acquisition spree In the last one year the world has seen two big Mergers

amp Acquisitions deals to take place-

The Mittal Steel listed in Holland has acquired the worlds largest steel company called Arcelor

Steel to become the worlds largest producer of Steel named Arcelor-Mittal

Tata Steel of India or TISCO (as listed in BSE) has acquired the worlds fifth largest steel company

Corus with the highest ever stock price

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with

a strong financial condition The increasing needs of steel by the developing countries for its infrastructural

projects have pushed the companies in this industry near their operative capacity

The most significant growth that can be seen in the Steel Industry has been observed during the period

1960 to 1974 when the consumption of steel around the whole world doubled Between these years the rate

at which the Steel Industry grew has been recorded to be 55 This roaring market saw a phase of

deceleration from the year 1975 which continued till 1982 After this period the continuous fall slowed

down and again started its upward movement from the early 1990s

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 8: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

EXECUTIVE SUMMARY

The research ldquoComparative analysis of Indian private and Public sectors with special reference to

TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics of a

particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

1 However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

2 Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

3 Public sector has increased its profit over the year particularly in 2006-07

4 Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

5 Public sector has undergone retrenchment for the employees and improved has its labor

productivity but it is still lacking behind as compared to private sector

6 SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

7 Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

INTRODUCTION

World Steel industry An overview

Steel the recycled material is one of the top products in the manufacturing sector of the world

The Asian countries have their respective dominance in the production of the steel all over the world

India being one among the fastest growing economies of the world has been considered as one of the

potential global steel hub internationally Over the years particularly after the adoption of the liberalization

policies all over the world the World steel industry is growing very fast

Steel Industry is a booming industry in the whole world The increasing demand for it was mainly

generated by the development projects that have been going on along the world especially the infrastructural

works and real estate projects that has been on the boom around the developing countries Steel Industry was

till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with

the Indian steel companies on an acquisition spree In the last one year the world has seen two big Mergers

amp Acquisitions deals to take place-

The Mittal Steel listed in Holland has acquired the worlds largest steel company called Arcelor

Steel to become the worlds largest producer of Steel named Arcelor-Mittal

Tata Steel of India or TISCO (as listed in BSE) has acquired the worlds fifth largest steel company

Corus with the highest ever stock price

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with

a strong financial condition The increasing needs of steel by the developing countries for its infrastructural

projects have pushed the companies in this industry near their operative capacity

The most significant growth that can be seen in the Steel Industry has been observed during the period

1960 to 1974 when the consumption of steel around the whole world doubled Between these years the rate

at which the Steel Industry grew has been recorded to be 55 This roaring market saw a phase of

deceleration from the year 1975 which continued till 1982 After this period the continuous fall slowed

down and again started its upward movement from the early 1990s

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 9: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

5 Public sector has undergone retrenchment for the employees and improved has its labor

productivity but it is still lacking behind as compared to private sector

6 SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

7 Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

INTRODUCTION

World Steel industry An overview

Steel the recycled material is one of the top products in the manufacturing sector of the world

The Asian countries have their respective dominance in the production of the steel all over the world

India being one among the fastest growing economies of the world has been considered as one of the

potential global steel hub internationally Over the years particularly after the adoption of the liberalization

policies all over the world the World steel industry is growing very fast

Steel Industry is a booming industry in the whole world The increasing demand for it was mainly

generated by the development projects that have been going on along the world especially the infrastructural

works and real estate projects that has been on the boom around the developing countries Steel Industry was

till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with

the Indian steel companies on an acquisition spree In the last one year the world has seen two big Mergers

amp Acquisitions deals to take place-

The Mittal Steel listed in Holland has acquired the worlds largest steel company called Arcelor

Steel to become the worlds largest producer of Steel named Arcelor-Mittal

Tata Steel of India or TISCO (as listed in BSE) has acquired the worlds fifth largest steel company

Corus with the highest ever stock price

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with

a strong financial condition The increasing needs of steel by the developing countries for its infrastructural

projects have pushed the companies in this industry near their operative capacity

The most significant growth that can be seen in the Steel Industry has been observed during the period

1960 to 1974 when the consumption of steel around the whole world doubled Between these years the rate

at which the Steel Industry grew has been recorded to be 55 This roaring market saw a phase of

deceleration from the year 1975 which continued till 1982 After this period the continuous fall slowed

down and again started its upward movement from the early 1990s

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 10: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

INTRODUCTION

World Steel industry An overview

Steel the recycled material is one of the top products in the manufacturing sector of the world

The Asian countries have their respective dominance in the production of the steel all over the world

India being one among the fastest growing economies of the world has been considered as one of the

potential global steel hub internationally Over the years particularly after the adoption of the liberalization

policies all over the world the World steel industry is growing very fast

Steel Industry is a booming industry in the whole world The increasing demand for it was mainly

generated by the development projects that have been going on along the world especially the infrastructural

works and real estate projects that has been on the boom around the developing countries Steel Industry was

till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with

the Indian steel companies on an acquisition spree In the last one year the world has seen two big Mergers

amp Acquisitions deals to take place-

The Mittal Steel listed in Holland has acquired the worlds largest steel company called Arcelor

Steel to become the worlds largest producer of Steel named Arcelor-Mittal

Tata Steel of India or TISCO (as listed in BSE) has acquired the worlds fifth largest steel company

Corus with the highest ever stock price

It has been observed that Steel Industry has grown tremendously in the last one and a half decade with

a strong financial condition The increasing needs of steel by the developing countries for its infrastructural

projects have pushed the companies in this industry near their operative capacity

The most significant growth that can be seen in the Steel Industry has been observed during the period

1960 to 1974 when the consumption of steel around the whole world doubled Between these years the rate

at which the Steel Industry grew has been recorded to be 55 This roaring market saw a phase of

deceleration from the year 1975 which continued till 1982 After this period the continuous fall slowed

down and again started its upward movement from the early 1990s

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 11: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Steel Industry is becoming more and more competitive with every passing day During the period

1960s to late 1980s the steel market used to be dominated by OECD (Organization for Economic

Cooperation and Development) countries But with the fast emergence of developing countries like China

India and South Korea in this sector has led to slipping market share of OECD countries The balance of

trade line is also tilting towards these countries

The main demand creators for Steel Industry are Automobile industry Construction Industry

Infrastructure Industry Oil and Gas Industry and Container Industry

New innovations are also taking place in Steel Industry for cost minimization and at the same time

production maximization Some of the cutting edge technologies that are being implemented in this industry

are thin-slab casting making of steel through the use of electric furnace vacuum degassing etc

In the year 2004 the global steel production has made a record level by crossing the 1000 million

tones Among the top producers in the steel production China ranked 1 in the world

Indian Steel Industry

Iron and steel is vital to the Indian economy for economic growth and economic well-being No

practical substitutes exist on a large scale for iron and steel because of the relatively high cost of alternative

materials

Worldwide there are broadly two major categories of steel playersmdashIntegrated steel producers (ISPs)

and mini-millssecondary producers although variations and combinations of the two exist The key

difference between the two is the type of iron bearing feedstock they consume In an integrated mill this is

predominantly iron ore with a smaller quantity of steel scrap A mini-mill produces steel uses mainly steel

scrap or increasingly other sources of metallic iron such as directly reduced iron (DRI)hot briquette iron

(HBI)

The iron and steel industry not only directly accounts for about 2 of GDP it also has a bearing on

how the consumer goods and downstream infrastructure sectors develop Further with a share of

approximately 10 the sector is amongst the largest contributors to the central excise India accounted for

34 of the estimated world steel production of 1129 million tonnes (mt) during 2005 At present India is

the 7th largest crude steel producing country in the world

In 2006-07 production of Finished (Carbon) Steel was 49350 million tonnes (Prov) Production of Pig

Iron in 2006-07 is estimated to be 4960 Million Tonnes (Prov) The share of Main Producers (ie SAIL

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 12: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

RINL and TSL) and secondary producers in the total production of Finished (Carbon) steel was 35 and

65 respectively during the period of April-December 2006

Size of Industry-

India is among the top 10 global suppliers of steel in the world

More than 35 million tonnes of steel is produced in India per annum

India is also the largest producer of sponge iron in the world

This sector represents around Rs 1 trillion of capital investments and directly provides employment

to around 05 million with the integrated steel plants accounting for a 40 share

The iron and steel sector also contributes around 62 of Indiarsquos manufactured goods exports and

46 of total exports by value

Structural Characteristics of Indian Steel Industry-

The industry is dominated by large integrated players like SAIL and Tata Steel in steel

The Public sector has a significant presence in this industry Steel Authority of India Ltd (SAIL) has

32 of Indiarsquos installed capacity of crude steel

Tata Steel and Essar Steel are the major private players in the industry

The industryrsquos fortunes depend on general global economic conditions but it is particularly sensitive

to the performance of the automotive construction durable equipment and other industrial products

industries The trend in the last few years in steel prices shows that the steel industry is cyclical

The global (and Indian) steel industry also suffers from cycles of over capacity and shortages This

too leads to cyclically fallingrising prices and industry lossesprofits

Integrated steel producers (ISPs)mdashTata Steel and SAILmdashface high fixed costs and thus in a

downturn the percentage profit margins come down significantly The downturn phases have

witnessed depressed prices at the firm level and widespread operating losses

Economic logic differs for mini mills that can vary output more quickly when prices fall

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 13: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

OBJECTIVES

To compare Private and Public steel sector with refrence to TATA Steel and Steel Authority Of

India

To analyse potential of both the companies ie TATA Steel and SAIL

To analyse measures taken by Indian government to improve the industry and study the National

Steel Policy 2005

To analyse the future of Indian steel industry

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 14: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

What is Private Limited and Public limited

Now letrsquos first understand the meaning and difference between Public Sector Company and Private

Sector Company The term ldquoPrivate Companyrdquo refers to ownership of a business company in two different

waysmdash First referring to ownership by non-governmental organizations and second referring to

ownership of the companys stock by a relatively small number of holders who do not trade the stock

publicly on the stock market

In countries with public trading markets a privately held business company is generally taken to mean

one whose ownership shares or interests are not publicly traded Often privately held companies are owned by

the company founders andor their families and heirs or by a small group of investors Sometimes employees

also hold shares of private companies Most small businesses are privately held

Private companies may be called corporations limited liability companies partnerships sole proprietorships

business trusts or other names depending on where and how they are organized

The term Public Company thus refers to a government-owned corporations and the ownership of assets

and interest is shared by people Normally the shares of a public company are owned by many investors

However a company with many shareholders is not necessarily a public company The shares of a public

company are often traded on a stock exchange The value or size of a public company is called its market

capitalization

It is able to raise funds and capital through the sale of its securities This is the reason why public

corporations are so important prior to their existence it was very difficult to obtain large amounts of capital

for private enterprises In addition to being able to easily raise capital public companies may issue their

securities as compensation for those that provide services to the company such as their directors officers

and employees

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 15: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

REASON FOR GROWTH OF PRIVATE SECTOR

Political will towards Privatisation

Financial Performance

Usage of more Advanced Technology

Young amp large English Speaking class

Opening up of Indian Economy has led to free flow of FDIs along with modern cutting edge

technology

REASON FOR GROWTH OF PUBLIC SECTOR

The Industrial Policy Resolution of 1956 enlarge the role of Public sector

SCHEDULE A to the Resolution enumerated 17 industries the future development of

which would be the exclusive right of the state

SCHEDULE B to the Resolution contained a list of 12 industries which would be

progressively state owned amp in which the state would therefore generally take the initiative

in establishing new units

The industrial Policy of 1956 is the basic policy of India It was more of a restrictive in

nature of new Private industries The Public Sector flourished in the time being before the

introduction of new industrial policy of 1991 which was more liberal in nature

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 16: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

I Private Sector companies in India

The private sector of the Steel Industry is currently playing an important and dominant role in

production and growth of steel industry in the country During the period (April-December 2006) 205

million tonne of steel was produced by Private Sector steel units out of the total production of 3315 million

tonne in the country The private sector units consist of major steel producers in one hand and relatively

smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and Induction

Furnaces on the other They not only play an important role in production of primary and secondary steel

but also contribute substantial value addition in terms of quality innovation and cost effectiveness

1 TATA Steel

Tata Steel is Indias largest integrated private sector steel company Established in 1907 The Company

is backward integrated with owned iron ore mines and collieries Tata Steel has an integrated steel plant

with an annual crude steel making capacity of 5 million tonne located at Jamshedpur Jharkhand

The steel works is situated at Jamshedpur in the state of Jharkhand India The factory covers 800

hectares of land West Bokaro sub division in Hazaribagh district overs 2000 hectares of land in which

mining and coal beneficiation activities are performed Jharia Division occupies 2500 hectares of land for its

industrial mining and domestic activities in the district of Dhanbad both in the state of Jharkhand The iron

ore and dolomite mines are located at Noamundi in the state of Jharkhand and at Joda Kalamati Khondbond

and Gomardih in the state of Orissa

Over the years Tata Steel has emerged as a thriving nimble steel enterprise due to its ability to

transform itself rapidly to meet the challenges of a highly competitive global economy and commitment to

become a supplier of choice Constant modernization and introduction of state-of-the-art technology at Tata

Steel has enabled it to stay ahead in the industry

Tata Steel has completed the first nine months of fiscal 2006-07 with impressive increase in its

production and sales volumes The hot metal production at 41 million tonne is 82 more compared to the

last year in the corresponding period and crude steel production at 37 million tonne is higher by 79

compared to the last year in first three quarters

The saleable steel production at 37 million tonne registered a significant increase of 11 The total

sales of 353 million tonne has grown by 117 over last financial year in the corresponding period The

domestic sale of long products has increased by 30

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 17: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Tata Steel is continuing with its programme of expansion of steel making capacity by 18 million tonne

to reach the rated capacity of 68 million tonne in fiscal 2007-08 and thereafter to 10 million tonne by fiscal

2010

Tata Steelrsquos greenfield projects in Orissa and Chhattisgarh are progressing on schedule with placement

of equipment order for Kalinganagar project in Orissa and commencement of the land acquisition process

Jharkhand project is waiting announcement of R amp R policy of the state Government The construction work

of ferrochrome project in South Africa is in full swing

Acquisition of Corus Recently Tata Steel acquired the Anglo-Dutch steel maker Corus thus emerging

as the fifth largest steel producer in the world

The steel major has won the Prime Ministers Trophy four times This award is instituted by the Indian

ministry of steel and awarded to the countrys best integrated steel plant In 2000 it became the first Tata

company to win the JRD Tata QV award given to the company with world class operations under the

Groups Tata Business Excellence Model

Areas of business

Apart from the main steel division Tata Steels operations are grouped under strategic profit centres

like tubes growth shop (for its steel plant and material handling equipment) bearings ferro alloys and

minerals rings agrico and wires

Tata Steels products include hot and cold rolled coils and sheets tubes wire rods construction bars

structurals forging quality steel rings and bearings In an attempt to decommoditise steel the company has

recently introduced brands like Tata Steelium (Indias first branded cold rolled steel) Tata Shaktee

(galvanised corrugated sheets) Tata Tiscon (re-rolled bars) Tata pipes Tata bearings Tata Wiron

(galvanised wire products) and Tata Agrico (hand tools and implements)

Tata Steel is also exploring opportunities in the ferro-chrome and titanium businesses

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 18: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Joint ventures associates and subsidiaries

Tata Steel has numerous joint ventures and subsidiaries Among them are

Tinplate Company of India

Tayo Rolls

Tata Ryerson

Tata Refactories

Tata Sponge Iron

Tata Metaliks

Tata Pigments

Jamshedpur Injection Powder (Jamipol)

TM International Logistics

mjunction services

TRF

Jamshedpur Utility and Service Company (JUSCO)

The Indian Steel and Wire Products(ISWP)

Lanka Special Steel

Sila Eastern Company

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 19: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

2 ESSAR STEEL LTD

Essar Steel is an integrated steel producer with operations all along the value chain Essar Steel

produces some of the worldrsquos best steel at its state-of-the-art steel complex at Hazira Gujarat It is also

Indiarsquos largest exporter of flat products sending half of its production abroad mainly to the highly

demanding markets of the west and the growth markets of South East Asia and Middle East Essar ensures

excellent customer services through a modern distribution network

Essar Steelrsquos core manufacturing facilities are located at its steel complex in Hazira Gujarat The

Hazira complex includes a 55 million tonne per annum Hot Briquetted Iron (HBI) plant a 46 mtpa

continuous caster slab facility a 36 million tonne per annum Hot Rolled Coils (HRC) and a 12 mtpa cold

roll mill complex with all down stream facilities The facilities are complemented by its own 80 mtpa pellet

plant at Vishakapatnam and 04 million tonne per annum cold rolled coil plant at Indonesia

Expansion

Presently Essar Steel has embarked upon a capacity expansion for enhancement of its production

capacity from 46 million tonne per annum to 76 million tonne per annum The capacity expansion

programme will consist of 2 units of Corex units of 15 million tonne per annum each Further value addition

will be carried out by Continuous Strip Caster Mill conventional Slab Caster Mill and a 52 meter Wide

Plate Mill

Products

All Essar Steelrsquos products are world class meeting the highest international standards supported by

excellent marketing and service

3 JSW STEEL LTD

JSW Steel Ltd is a 38 million tonne per annum integrated steel plant having a process route

consisting broadly of iron ore beneficiation ndash pelletisation ndash sintering ndash coke making ndash iron making through

blast furnace as well as Corex process ndash steel making through BOFndashcontinuous casting of slabs ndash hot strip

rolling The production facilities include 30 million tonne per annum iron ore beneficiation unit 50 million

tonne per annum pellet plant 32 million tonne per annum sinter plant 12 million tonne per annum coke

ovens 09 + 13 million tonne per annum blast furnaces two Corex units of 08 million tonne per annum

each 3 X 130 t converters three slab casters and a 25 million tonne per annum hot strip mill with state-of-

the-art coil box technology

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 20: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

JSW Steel has a distinction of being certified to ISO-90012000 Quality management system ISO-

140011996 environment management system and OHSAS 180011999 occupational health and safety

management system

During this year JSW Steel has also been conferred with a number of awards

Production Performance

(in million tonne)

Items 2003-04 2004-05 2005-06 April-Dec06

Pellets 325 361 380 293

Hot Metal 163 196 240 219

Slabs 161 187 225 195

Hot Rolled Coils 154 178 210 148

4 JINDAL STEEL AND POWER LTD (JSPL)

Jindal Steel and Power Ltd (JSPL) part of the $4 billion Jindal Organisation has business interests in

steel power generation mining iron ore coal and diamond explorationmining The current turnover of the

company is over Rs 3000 crore JSPL is the worldrsquos largest producer of coal based sponge iron The

product range encompasses 27 steel slabs rounds blooms and beam blanks JSPL is producing rails and H

beams and columns in technical collaboration with JFE Corporation Japan These H-beams are the most

desired option of structural engineers worldwide JSPL is the largest private sector investor in the state of

Chhattisgarh with a total investment commitment of more than Rs 10000 crore The company is also setting

up a 6 million tonne steel plant in Orissa with an investment of Rs 13500 crore and a 5 million tonne steel

plant in Jharkhand with an investment of Rs 11500 crore

Jindal Power Ltd wholly-owned subsidiary of JSPL is setting up a 1000 mega watt OP Jindal super

thermal power plant at Raigarh with an investment of over Rs 4500 crore JSPL has been rated as one of

the best environmentally managed companies in India and committed to environment protection as an

integral part of their business activities

5 ISPAT INDUSTRIES LTD (IIL)

Ispat Industries Ltd (IIL) has set up integrated steel plants at Dolvi (district Raigad) a backward

region of Maharashtra with a capacity of 3 million tonne of hot rolled coils per annum The plant has got a

224 million tonne per annum sintering plant 2 million tonne per annum blast furnace and 16 million tonne

per annum gas based sponge iron plant IIL have uniquely combined the usage of hot metal and sponge iron

in the electric arc furnace for production of liquid steel for the first time in India IIL have also adopted the

state-of-art technology called Compact Strip Production (CSP) process which has been installed for the first

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 21: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

time in India and produces high quality and very thin gauges of Hot Rolled Coils (HRC) The IILrsquos products

are accepted in the domestic and international market

The production performance of IIL during last three years has been as follows

(in million tonne)

Items 2003-04 2004-05 2005-062006-07

(Up to Dec06)

Hot Metal 129 140 142 114

Sponge Iron 106 105 089 085

Hot Rolled Coils 162 197 215 197

The two thin slab casters each with designed capacity to cast 55 and 60 mm slabs with Iiquid Core

Reduction (LCR) features available Ispatrsquos casters have achieved global benchmark in annual production as

confirmed by Steel Melting Shop (SMS) Demag the technology supplier

The other major Private steel companies are

JISCO

Saw Pipes

Uttam Steels Ltd

Mukand Ltd

Mahindra Ugine Steel Company Ltd

Usha Ispat Ltd

Kalyani Steel Ltd

Electro Steel Castings Ltd

Sesa Goa Ltd

NMDC

Lloyds SteeI Industries Ltd

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 22: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

II Public Sector companies in India

1 Steel Authority of India Limited (SAIL)

Steel Authority of India Limited (SAIL) is the leading steel-making company in India It is a fully

integrated iron and steel maker producing both basic and special steels for domestic construction

engineering power railway automotive and defence industries and for sale in export markets

The Government of India owns about 86 of SAILs equity and retains voting control of the Company

However SAIL by virtue of its lsquoNavratnarsquo status enjoys significant operational and financial autonomy

Ranked amongst the top ten public sector companies in India in terms of turnover SAIL manufactures

and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets

electrical sheets structurals railway products plates bars and rods stainless steel and other alloy steels

SAIL produces iron and steel at five integrated plants and three special steel plants located principally in the

eastern and central regions of India and situated close to domestic sources of raw materials including the

Companys iron ore limestone and dolomite mines The company has the distinction of being Indiarsquos largest

producer of iron ore and of having the countryrsquos second largest mines network This gives SAIL a

competitive edge in terms of captive availability of iron ore limestone and dolomite which are inputs for

steel making

SAILs wide range of long and flat steel products is much in demand in the domestic as well as the

international market This vital responsibility is carried out by SAILs own Central Marketing Organisation

(CMO) and the International Trade Division CMO encompasses a wide network of 34 branch offices and 54

stockyards located in major cities and towns throughout India

With technical and managerial expertise and know-how 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 well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi

which helps to produce quality steel and develop new technologies for the steel industry Besides SAIL has

its own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and

Safety Organisation 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

headquarters in Kolkata Almost all our plants and major units are ISO Certified

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 23: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Bhilai Steel Plant (BSP) in Chhattisgarh

Durgapur Steel Plant (DSP) in West Bengal

Rourkela Steel Plant (RSP) in Orissa

Bokaro Steel Plant (BSL) in Jharkhand

IISCO Steel Plant (ISP) in West Bengal

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint Ventures

SAIL has promoted joint ventures in different areas ranging from power plants to e-commerce

NTPC SAIL Power Company Pvt Ltd

Bokaro Power Supply Company Pvt Limited

Mjunction Services Limited

SAIL-Bansal Service Centre Ltd

Bhilai JP Cement Ltd

SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company

to produce ferro-manganese and silico-manganese at Bhilai

2 MAHARASHTRA ELEKTROSMELT LTD (A Subsidary of SAIL)

Maharashtra Electrosmelt Ltd is situated in Chandrapur Maharashtra and is a major producer of ferro

manganese and silico manganese for captive use of SAIL plants The authorised and paid-up share capital of

the company as on 3132006 was Rs 30 crore and Rs 24 crore respectively SAILrsquos holding is

approximately 9912 of the paid-up capital

Financial Performance

During the year 2005-06 the company recorded a turnover of Rs 24733 crore (including conversion income

of Rs 17110 crore) and made a net profit after tax of Rs 2097 crore The turnover and net profit after tax

of the company during April 2006 to December 2006 were Rs 22026 crore (provisional) and Rs 1748

crore (provisional) respectively

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 24: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Production Performance

The production of all grades of ferro alloys during 2005-06 is as under

(in tonne)

Materials 2005-06 April- Dec 2006

High Carbon Ferro Manganese 51525 49493

Silco Manganese 46712 32921

Medium Carbon Ferro Manganse 2344 164

3 RASHTRIYA ISPAT NIGAM LTD (RINL)

Visakhapatnam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in

Andhra Pradesh The plant was commissioned in August 1992 with a capacity to produce 3 million tonne per

annum of liquid steel The plant has been built to matching international standards in design and engineering

with the state-of-the-art technology incorporating extensive energy saving and pollution control measures

VSP has an excellent layout which can be expanded to over 10 million tonne per annum capacity Right

from the year of its integrated operation VSP established its presence both in the domestic and international

markets with its superior quality of products VSP has been awarded all the three International Standards

Certificates namely ISO 90012000 ISO 140011996 and OHSAS 180011999 The company has taken

significant strides in the area of Corporate Social Responsibility

Production Performance

(in million tonne)

Items 2004-05 2005-06 2006-07 (April-Dec06)

Hot Metal 3920 4153 3040

Liquid Steel 3560 3603 2676

Saleable Steel 3173 3237 2419

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 25: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

4 NATIONAL MINERAL DEVELOPMENT CORPORATION LTD (NMDC)

Incorporated on November 15 1958 the National Mineral Development Corporation Ltd (NMDC) a

Government of India Enterprise is engaged in the business of developing and exploiting mineral resources

of the country (other than coal oil natural gas and atomic minerals) At present its activities are

concentrated on mining of iron ore diamonds and silica sand

NMDC operates the largest mechanised iron ore mines in the country at Bailadila (Chhattisgarh) and

Donimalai (Karnataka) The silica sand project is at Lallapur Allahabad and the diamond mine is situated at

Panna (Madhya Pradesh) Mining activities at DMP Panna were stopped with effect from 22082005 on

receipt of notice from Madhya Pradesh Pollution Control Board The case is pending with Honrsquoble Supreme

Court of India NMDC is following up the case for early hearing

All the iron ore production units have been accredited with ISO 90012000 and ISO 140012004

certifications RampD Centre of NMDC was also accredited with ISO 90012000 certification

Iron Ore

NMDC produced 1727 million tonne of iron ore during the year 2006-07 (up to December 2006) Domestic

sales of iron ore was 1550 million tonne during the year (up to December 2006) Exports of iron ore

produced by NMDC is canalised through MMTC Ltd Iron ore is exported to Japan South Korea and China

In 2006-07 NMDC exported 178 million tonne of iron ore valued at approximately Rs 42980 crore

Capital Structure

The authorised share capital of the company is Rs 150 crore The paid up equity share capital was Rs

13216 crore Outstanding loans from Government of India are nil

Financial Performance

The financial performance of the company for the year 2005-06 and 2006-07 (April-Dec 06) are given below

Particulars 2004-05 2005-06 2006-07 (April-Dec06)

SalesTurnover222655 371092 2790

Gross Margin128749 2889 2455

Profit Before Tax122365 277013 2410

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 26: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

5 MSTC LTD

MSTC Ltd (formerly Metal Scrap Trade Corporation Ltd) a Government of India Enterprise was set up on

September 9 1964 as a canalising agency for the export of scrap from the country With the passage of time

the Company emerged as the canalising agency for the import of scrap into the country Import of scrap was

de-canalised by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and

miscellaneous scrap arising out of steel plants and other industries and importing coal coke petroleum

products semi finished steel products like HR coils and export of primarily iron ore The company has also

established an e-auction portal and undertakes e-auction of coal diamonds and steel scrap and has developed

an e-procurement portal in house

Capital Structure

The company has an authorised capital of Rs 5 crore and paid up capital was Rs 220 crore as on

31122006 of which approximately 90 is held by Government of India and balance 10 by members of

Steel Furnace Association 16 of India Iron and Steel Scrap Association of India and others Paid up capital

of Rs 220 crore includes bonus shares issued in the year 1993-94 in the ratio 11

6 FERRO SCRAP NIGAM LTD (FSNL)

Ferro Scrap Nigam Ltd (FSNL) is a wholly owned subsidiary of MSTC Ltd with a paid up capital of Rs 2

lakh The company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine

steel plants at Rourkela Burnpur Bhilai Bokaro Visakhapatnam Durgapur Dolvi Duburi and Raigarh

The scrap recovered is returned to the steel plants for recyclingdisposal and the company is paid processing

charges on the quantity recovered at varying rates depending on the category of scrap Scrap is generated

during iron and steel making and also in the rolling mills In addition the company is also providing steel

mill services such as scarfing of slabs handling of BOF slag etc

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 27: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Financial Performance

Particulars 2004-05 2005-06 2006-07 (Apr-

Dec2006)

Total Turnover ie Service charges realised including miscellaneous Incomeetc

981822 1067937 765557

Gross Margin before Interest amp Depreciation 167879 186514 105284

Interest amp Depreciation 83014 100970 84728

Profit before Tax 84865 85544 20556

7 MANGANESE ORE (INDIA) LTD (MOIL)

Manganese Ore (India) Ltd (MOIL) was established in 1962 It is the largest producer of manganese ore in

India At the time of inception 49 of its shares were held by the Central Province Manganese Ore Co Ltd

(CPMO) and the remaining 51 in equal proportion by Government of India and the State Governments of

Madhya Pradesh 17 and Maharashtra Subsequently in 1977 the Government of India acquired the shares

held by CPMO in MOIL and MOIL became a wholly owned Government company with effect from

October 1977 As on 30112006 Government of India held 8157 shares in MOIL with State

Governments of Maharashtra and Madhya Pradesh holding 961 and 882 shares respectively

MOIL Produces and Sells following Grades of Manganese Ore

1048708 High grade ores for production of ferro manganese

1048708 Medium grade ores for production of silico manganese

1048708 Blast furnace grade ore required for production of hot metal

1048708 Dioxide ore for dry battery cells and chemical industries

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 28: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Production and Financial Performance

The physical and financial performance of the Company during 2004-05 2005-06 and 2006-07 (April-Dec

2006) are given below in the table

8 KUDREMUKH IRON ORE COMPANY LTD (KIOCL)

Kudremukh Iron Ore Company Ltd (KIOCL) an 100 Export Oriented Unit ISO 90012000 and ISO

14001 company was established in April 1976 to meet the long term requirements of Iran An iron ore

concentrate plant of 75 million tonne capacity was set up at Kudremukh This project was to be financed in

full by Iran However as Iran stopped further loan disbursements after paying US $ 255 million the project

was completed as per schedule with the funds provided by Government of India While the project was

commissioned on schedule consequent upon the political developments in Iran they did not lift any quantity

of concentrate As a diversification measure the Government approved the construction of a 3 million tonne

per year capacity pellet plant in Mangalore in May 1981 The capacity of the pellet plant was increased to

35 million tonne with additionsmodifications The plant went into commercial production in 1987 and is

now exporting blast furnace grade pellets to China and also to domestic units such as Ispat Industries Ltd

and Rastriya Ispat Nigam Ltd Aerial view of Pellet Plant Mangalore

Items 2004-05 2005-06 2006-07 (up to Dec2006)

1 Production

a) Manganese Ore (thousand tonne) 94300 86500 82533

b) Electrolytic Manganese Dioxide(tonne) 112300 130100 46000

c) Ferro Manganese (tonne) 1032500 617000 829400

2 Turnover (Rupees in crore) 37878 33409 29463

3 Profit before Tax (Rupees in crore) 20227 16900 12087

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 29: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Production

A target of 31 million tonne and 305 million tonne was set for production of iron ore concentrate and iron

oxide pellets respectively during the year 2005-06 Actual production was 2922 million tonne of concentrate

and 2834 million tonne of pellets

The target set for production during the year 2006-07 is 305 million tonne of pellets In pursuance of

directive of Honrsquoble Supreme Court dated 30-09-2005 the mining activities at Kudremukh were stopped on

31-12-2005 Therefore there is no production of iron ore concentrate during the year 2006-07 As against a

target of 188 million tonne of pellets fixed for the period April to November 2006 the actual production

was 0275 million tonne which represents 15 target fulfilment There is shortfall in production of pellets up

to November 2006 during 2006-07 The shortfall in production of pellets is on account of operational

problems being encountered in the pellet plant after switching over to usage of 100 hematite ore from

magnetite ore There was excessive generation of su er fines (slimes) affecting filtration clogging of filters

overflow and contamination of process water due to filling of cooling pond affecting production While

efforts are continuing to rectify the problems the operation of pellet plant is yet to stabilize and normal

production is yet to commence

The sales revenue during the last five years and up to November 2006 during 2006-07 is detailed below

(Rs in lakh)

Years Concentrate Pellets Total

2006-07 (up to December 2006) - 12427 12427

2005-06 12091 111137 123228

2004-05 16050 169327 185377

2003-04 20209 82729 102938

2002-03 21135 51579 72714

2001-02 21571 50598 72169

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 30: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Financial Performance

An overview of the performance of KIOCL during the year 2006-07 (up to November 2006) together with

actuals for the previous three years is indicated below

(Rs in lakh)

Particulars 2006-07(up to December 2006)

2005-06 2004-05 2003-04

Total value of Sales 12427 123228 185377 102938

Gross Margin 2620 68706 120863 45945

Profit after Tax 1029 35630 64984 30070

Inventories(excluding finished stock)

20417 15843 8720 7616

BIRD GROUP OF COMPANIES

Consequent upon nationalisation of the undertaking of Bird and Company Ltd in 1980 the following seven

companies came under the administrative control of the Ministry of Steel Government of India

(a) The Orissa Minerals Development Company Limited (OMDC)

(b) The Bisra Stone Lime Company Limited (BSLC)

(c) The Karanpura Development Company Limited (KDCL)

(d) Scott amp Saxby Limited (SSL)

(e) Eastern Investments Limited (EIL)

(f) Burrakar Coal Company Limited (Burrakar)

(g) Borrea Coal Company Limited (Borrea)

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 31: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

The status of the companies is as under

a) Burrakar and Borrea coal companies became non-operational after nationalisation of coal mines The two

companies are in the process of liquidation The official liquidator has already taken over the assets and

liabilities of these two companies

b) EIL being an investment company is having a major stake in the equity shares of operating companies

under the Bird Group

c) OMDC BSLC KDCL amp SSL are operating companies under the Group

Status of the Companies at the Time of Nationalisation

At the time when the Bird Group of Companies came under the administrative control of the Ministry of

Steel Government of India all of them were financially sick and burdened with various problems With the

financial support from the Government of India problems relating mainly to excessive manpower erosion

of working capital and outstanding liabilities could be settled to a considerable extent

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 32: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Research Methodology

This section deals with the research design used and data collection method used

a) Research design-

In case of my research ldquoComparative analysis of Indian private and Public sectors with special

reference to TATA Steel and SAILrdquo the descriptive research is found to be more appropriate

Descriptive research studies are those studies which are concerned with describing the characteristics

of a particular individual or a group This study is concerned with specific prediction narration of facts and

characteristics concerning individual group of situation are all examples of descriptive research studies

b) Data collection method-

According to my topic of research I found that the use of secondary data is the only right choice For

that I mainly used Internet and collective various data from government and private websites

I visited to the library and went through various books and journals for collection of the relevant data

for the research

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 33: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

DATA ANALYSIS

Comparison between TATA Steel and Steel Authority of India

The Public sector undertakings (PSUs) under the Ministry of Steel have shown significant

improvements in the last two years The combined profit before tax of all 15 PSUs of the Steel Ministry

exhibited an enhancement of more than two times from Rs 5568 crore in fiscal 2003-04 to Rs 11497 crore

in 2005-06

The profit before tax for all PSUs also exhibited a significant improvement of around 26 in the three

quarters of 2005-06 (April-December 2006) amounting to Rs1056640 crore as against a combined profit

before tax of Rs836875 crore in the comparable period of last year

Contribution of PSUs to public exchequer has also gone up significantly For example the contribution

of five leading companies namely SAIL RINL NMDC KIOCL and MOIL to Central and State exchequer

by way of excise duty customs duty dividend corporate tax sales tax royalty etc has gone up by more

than double from Rs 5761 crore in 2003-04 to Rs13110 crore in 2005-06

On the other hand the Private sector of the Steel Industry is currently playing an important and

dominant role in production and growth of steel industry in the country During the period (April-December

2006) 205 million tonne of steel was produced by Private Sector steel units out of the total production of

3315 million tonne in the country The private sector units consist of major steel producers in one hand and

relatively smaller amp medium units such as Sponge iron plants Re-rolling mills Electric Arc Furnaces and

Induction Furnaces on the other They not only play an important role in production of primary and

secondary steel but also contribute substantial value addition in terms of quality innovation and cost

effectiveness

For comparing both the companies ie Tata Steel and SAIL lets analyse both the companies on

following parameters

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 34: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Production

Chart showing production of both the companies

Quantity 000 Tonnes

2007-08 APR-DEC07 APR-DEC06 ACTUA

L

AGE OF CURRENT

PRODUCTION OVER

CAPACITY UTILISATION

TARGET TENTATIVE

TARGET ACTUALAPR-

DEC07 TARGET

APR-DEC06

ACTUAL

APR-DEC

07APR-DEC06

SAIL

i)BSP49500 37110 37320 35780 1006 1043 1270 1210

ii)DSP18400 13580 14330 13450 1055 1065 1060 990

iii)RSP18130 13450 15360 15120 1142 1016 1080 1060

iv)BSL43500 32630 30970 30010 949 1032 950 910

v)ISP5000 3760 3520 3450 936 1020 940 920

vi)ASP1470 1070 1140 1130 1065 1009 650 640

vii)VISL1390 1050 1160 1190 1105 975 1300 1340

TATA 50000 37440 37090 37380 991 992 990 1000

TATA Steel

The company had a Production target for the year 2007-08 was 5 million tonnes (mT) but it could produce

only 493 (mT) For the first 3 quarters of the years company set a target of 3744 (mT) but could produce

3709 However for the same period in last year company produced 3738 (mT) steel a capacity utilisation of

100 as compared to 99 this year

Steel Authority of India

The company had a aggregate production target of 13739 (mT) for the year 2007-08 but it could produce

only 126 (mT) a growth of 4 over the previous year However for the first 3 quarters of the years company

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 35: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

set a target of 10265 (mT) and produced 10380 as compared to around 10 (mT) for the same period last

year SAIL had a capacity utilisation of 103 this year as compared to 101 last year

Financials

TATA Steel

The year 2006-07 has seen the highest turnover and profits continuing the trend of the past four years

The Company achieved the best ever sales turnover and profitability during the year under review A robust

Indian economy firm steel prices higher volumes and several improvement initiatives contributed to the

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 36: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

record performance Finished steel sales were higher by 1133 at 451 million tonnes over the previous

year Export turnover was lower by about 5 due to lower volumes Average price realisation improved

mainly due to higher prices of hot rolled coilssheets Operating profit was higher by over Rs 1000 crores at

Rs 6973 crores (2005-06 Rs 5938 crores) an increase of 17 over the previous year

Net interest charges were higher at Rs 174 crores (2005-06 Rs 125 crores) due to additional

borrowings for the Companyrsquos domestic expansion programs and funding Companyrsquos contribution for

financing the acquisition of Corus Group plc After providing for Rs 819 crores for depreciation (2005-06

Rs 775 crores) and Rs 152 crores towards employee separation scheme (2005-06 Rs 53 crores) the profit

before tax rose by 20 to Rs 6262 crores (2005-06 Rs 5240 crores) Net Profit after taxes was higher at

Rs 4222 crores (2005-06 Rs 3506 crores) an increase of 20 compared to the previous year

The record financial results would not have been possible without a matching performance by the

operating departments including the raw materials division The year witnessed the best ever crude steel

production by the Company at 505 million tonnes an increase of 67 over the previous year Jamshedpur

Plant became the first plant in India to produce more than 5 million tonnes of crude steel in a year The

upgraded ldquoGrdquo Blast Furnace produced over 2 million tonnes of hot metal as against its rated capacity of 18

million tonnes Among the Finishing Mills the output at the Cold Rolling Mill and the Hot Strip Mill

exceeded their rated capacities The all-round increase in production was backed by improvements in

operating practices and productivity resulting in a reduction in consumption of raw materials energy

refractories etc

Steel Authority of India

Financial Year 2006-07 has been eventful year for the company with further momentum in improving

operational efficiencies laying strong foundation and building road map for modernisation and expansion of

SAIL Plants with several new initiatives undertaken with its human resource at the core During the year

the company got the distinction of first metal company in the country to reach a market capitalization of Rs

50000 crore

There have been improvements in all financial parameters which are shown in the table given below-

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 37: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

SAIL set new record in achieving the turnover of Rs39189 crore and profit before tax of Rs9423

crore registering growth of 21 amp 65 respectively over previous year The company recorded net profit

after tax (PAT) of Rs6202 crore an increase of 55

Research and Development

Chart showing production of both the companies

(Rs Crore)

TATA Steel

The R amp D laboratory was set up in 1937 Today Tata Steel is the first in India to develop

galvannealed skin panels It is the only Indian supplier of bake hardening steel for body panels

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 38: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Research is undertaken at Tata Steel in the areas of raw materials including coal coke energy

conservation waste utilisation sintering blast furnace productivity and phosphorous reduction product

development and improvement in life of plant and machinery The Company spends 7 of its turnover for

RampD 17 patents have been sealed and over 100 are in process

Steel Authority of India

Research and Development Centre for Iron and Steel (RDCIS) has provided innovative technological

inputs to different units of SAIL with special emphasis on cost reduction product development and

application quality improvement energy conservation and automation Several new products were

developed and commercialised like DMR 249 Gr A at Bhilai Steel Plant (BSP) Bokaro Steel Plant Steel

(BSL) and Rourkela Steel Plant (RSP) Spade M-1 steel as per CDA 99 specification at RSP Fe 415 Gr

Thermo Mechanically Treated (TMT) rebar with micro-alloying at BSP high strength corrosion resistance

roof bolt grade bars at Durgapur Steel Plant (DSP) earthquake resistant TMT rebars (Fe-415) at DSP Cu-

Mo pearlitic rail at BSP high strength micro alloyed rails at BSP etc The RDCIS strengthened its

technology marketing efforts by providing consultancy services organising specialised testing and transfer

of technological innovations to outside customers like Ms Power Grid Corporation of India Gurgaon Ms

Refcom (India) Pvt Ltd Purulia (West Bengal) Ms Sarvesh Refractories Rourkela Ms Balmer Lawrie

Ltd Kolkata and Ms Monarch Electronics Kolkata etc

During the year 1998 technical papers were publishedpresented besides filing of 31 patents and 29

copyrights The scientists at the RDCIS won nine national level awards In addition RDCIS won the

prestigious ldquoDSIR National Award 2005 for RampD achievements in New Materialsrdquo given by the Ministry of

Science and Technology Government of India

Environment

TATA Steel

Tata Steelrsquos efforts at Environment Management are well recognised Itrsquos Steel Works in Jamshedpur

all its mines collieries and manufacturing divisions in its out has an ISO-14001 certified service

providerlocations are certified to ISO-14001 Jamshedpur is the only town in the country which

Significant achievements by the Company include an improvement in environment and resource

conservation including a reduction in green house erosion raw materials and water consumption The

Company has increased waste re-use and re-cycling Constant upgradation and modernisation has resulted in

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 39: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

several state-of-the-art pollution control systems being installed to prevent and control pollution The

Company has almost doubled its capital investment in Pollution Abatement in the last five years

Emissions effluents and wastes

Greenhouse Gas (GHG) Of the six Greenhouse Gases Carbon Dioxide is of most relevance to the

steel industry Considerable reduction has been effected by Tata Steel in the Carbon Dioxide emission rate

as is evident when the credit for slag granulation is taken into account Other Greenhouse Gas emissions do

not result from Tata Steelrsquos activities

Ozone depleting substances The Steel Works reduced use of refrigerants to 7044 tonnes in 2003-04 as

against 790 tonnes used during the previous year

Hazardous Waste under Basel Convention The Company does not import or export any waste deemed

hazardous under the Basel Convention All hazardous wastes generated are handled as per the requirement

of the Hazardous Waste Management and Handling Rules 19892000

Emissions

Tata Steel has undertaken several initiatives which have resulted in considerable reduction in stack

emission Emissions are well below the Indian and international standards The emission load including

particulate matter Sulphur Dioxide and Oxides of Nitrogen have dropped as a result of the improvement

initiative undertaken at the Steel Works

Waste handling

Most of the solid waste generated from Steel Works is recycled or reused 18 of the solid waste

generated amounting to approximately 550000 tonnes in 2003-04 was used to fill low-lying areas and for

peripheral road construction around Jamshedpur About 200000 tonnes of fly ash and bottom ash

generated in the power plants was dumped in a designated dump area

Effluent Management

Waste water from the steel making process is being treated with best available physio-chemical

methods as well as being recycled Waste water from the coke plant is treated biologically where organic

pollutants are oxidised and decomposed by micro organisms The Company has reduced the levels of total

pollutant discharge in waste water streams from 0211 in 1999-2000 to 0178 in 2003-04

Steel Authority of India

Corporate environmental policy of SAIL emphasises ldquoconducting operations in an environmentally

responsible manner to comply with applicable regulations and striving to go beyondrdquo SAIL recognizes its

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 40: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

responsibility to continuously improve its energy efficiency and optimize resource consumption through

various measures viz improvement in process technology in the areas of raw materials coke iron and steel

making reuserecycle of the by-products generated and conservation of energy and water

Solid Waste Management

During 2005-06 SAIL produced approximately 134 million tonne of crude steel and generated 56

million tonne of Blast Furnace (BF) slag 13 million tonne Steel Melting Shop (SMS) slag and 06 million

tonne of other process wastes Utilisation of these wastes are being made through internal recycling and

selling to outside agencies The wastes generated in the steel plants are being utilized mainly through their

Sinter plant SAIL plants have achieved 70 utilisation of solid wastes generated during April-September

2006

Environmental Plantation

Trees have a significant role in protection of environment and ecological balance Extensive

afforestation programme are being followed in all the plants and mines The basis of choosing the species of

plants mainly depends on local soil characteristics and prevailing meteorological conditions The green belt

developed by afforestation adds to the aesthetic environment which becomes dust and noise barriers

A total number of 145521 saplings have been planted covering an area of 637 hectare in 2005-06 as

against 77242 nos of saplings planted in an area of 366 hectare in 2004-05 in and around the steel plants of

SAIL

Environmental Recognitions

SAIL plants have been awarded various prizes for environmental management in their plants viz

ldquoSustainability prize in independent unit categoryrdquo 2006 instuted by the Confederation of Indian Industries

(CII) for exemplary performance in the environmental economic andsocial dimensions of sustainable

development and the Greentech Environment Excellence Gold AwardGolden Peacock Environment

Excellence Award in the metal sector 2005 instuted by the World Environment Foundation and the

Jawaharlal Nehru Memorial Pollution Control Excellence Award for 2005 from International Greenland

Society

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 41: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Workforce and Welfare of Society

TATA steel

Tata Steel has not lost focus of this philosophy and has adapted it in a broader and modern context in

its Vision 2007 A lot is dependent on the individual spirit and enthusiasm of the employees to realise our

vision TATA Steel accelerates efforts to provide a work environment that will ensure a sense of purpose

and personal growth for each individual The wish of the company is to see the smile on every face

everyday A pioneer in employee welfare Tata Steel has invested in the power of its people and enriched

empowered and enhanced their lives

Even in its nascent years social scientists Sidney and Beatrice Webb were brought in to work on

welfare schemes In fact some of the initiatives introduced by Tata Steel were the first of their kind in India

and some even in the western countries at that time Tata Steelrsquos Human Resource policy recognises its

people as the primary source of its competitiveness It focuses on constantly updating and challenging

intellectual capabilities to enable them to excel in performance Special efforts are made for enhancing

strategic thinking skills and analytical abilities of its managers and workers As a true lsquoLearning

Organisationrsquo Tata Steel has tapped the knowledge available with its people through Knowledge

Management and sharing of best practices

In the year 2003 Tata Steel celebrated 75 years of industrial harmony and mutual co-operation

coordination and understanding between the Management and the Union It has twice emerged as ldquoAsiarsquos

Most Admired Knowledge Enterpriserdquo among many other prestigious awards and recognition Tata Steel

aims at ensuring transparency fairness and equity in all its interactions with its employees to create an

enthused and happy workforce

1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of

education vocational training self-employment and family welfare

2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility

provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative

interventions to people in inaccessible rural areas

3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp

Olympics

4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was

inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey

basketball boxing table tennis and a modern gymnasium

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 42: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the

betterment of the people in and around Jamshedpur

6 At times of natural calamities the company has rushe immediate relief and off ered long-term

assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such

aff ected areas

7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique

environment for the children of Jamshedpur to grow up in

8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has

emerged as the one of the best cities in India

Steel Authority of India

The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and

123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which

included separation of 881 employees through voluntary retirement The labour productivity improved by

around 12 over previous year to 150 tonne crude steelmanyear

Some of the areas of assistance which are available to the weaker sections are the following

The company has provided land for construction of school buildings in some of the steel townships as

well as in other places for spreading education among the masses

1 The company has constructed roads in remote areas around the steel plants and also where the

captive mines are located to improve communication and also increase activities such as organisation

of health camps school facilities drinking water etc under the peripheral development schemes

Bhilai Steel Plant has adopted 36 tribal children of Chattisgarh region and Bokaro Steel Plant has

adopted 12 Birhor tribe children These plants are providing them with education boarding and

lodging facilities

2 Construction of bridges by-pass roads metal-morum path waterways levellingdressing area around

township pre-mixed roads Installation of hand-pumps tube wells and wells for villagers

3 Construction of school buildings (including for mentally retarded deaf and dumb children)

madarsas providing school furniture therein and construction of hostels womenrsquos college building

etc

4 Fourteen scholarships are awarded to deserving SCST undergraduate engineering students in various

disciplines to encourage technical education among them

5 In many cases tuition fee in company run schools is exempt for SCST students Steps are taken to

provide education to more and more tribal children in company schools

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 43: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

6 The unemployed SCST youth are given specialized training in various technical trades to develop

skill and knowledge Such training is provided free of cost

7 Adult literacy campaign is carried out in most of the steel townships Every year more and more men

and women are being covered in this campaign

8 Development of fishery and cottage industry providing sewing machines to village mahila mandals

and promoting other self-employment generation schemes

9 SAIL has established a hockey academy with stadium and hostel facilities at Rourkela to tap and

nurture the talent scattered in surrounding tribal area The academy was successful in spotting a

number of young talented tribal players and grooms them under expertise of ex-Olympian

Technology

The biggest boost to efficiency in the steel industry has come from the increased use of continuous

casting ndash an indicator of the modernity of the production process Its share of Indian crude steel output has

climbed from 38 in the mid-1990s to 66 now India is thus well on its way to joining the ranks of the

leading steelmakers among the industrial nations (share in EU-25 96) However in India some 6 of

crude steel is still made using the outdated open-hearth process (EU-25 03) which suggests there is

restructuring potential

TATA Steel

Tata Steels stall at the International Trade Fair was adjudged the best along with SAIL amongst

ninety national companies participating in the Trade Fair Thirty international companies also took part in

the exhibition Participating companies from countries all over the world exhibited latest technologies and

know-how List of participating companies included Baosteel SAIL Heavy Engineering Corporation

Hindustan Copper Jindal Steel amp Power MN Dastur amp Co MECON and other such companies of national

and international repute China was the partner country for the International Trade Fair this year

In the award winning exhibition Tata Steel showcased its best coal mining practices cutting-edge

technology used in iron ore mining pioneering human resource practices 78 years of industrial harmony and

various other aspects of the worlds best steel company

The 6th International Trade Fair and Conference an institutionalised global event is considered to be

one of the most prestigious forums for national as well international participants It is a conclave of the finest

minds concerned with the future direction and growth of these sectors The forum provided the worlds most

eminent metallurgists manufacturers of metallurgical and mining machinery and related sectors

professionals analysts and experts with the opportunity to exchange views on emerging technologies

synergy and strengths and open up wider horizons for sectorial development

Tata Steel to adopt Corus technology

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 44: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Tata Steel plans to implement alternate technology used by the British steel maker Corus which it

acquired recently in its greenfield steel plants to reduce cost of production according to Mr B Muthuraman

Managing Director Tata Steel

ldquoWe are looking at alternate technology Corus has developed an alternate technology which could be

implemented in our greenfield plantsrdquo Mr Muthuraman told newspersons on the sidelines of the 34th

National Management Convention organised by the All-India Management Association However he

declined to give further details on the type of technology the Indian steel giant plans to implement

Steel Authority of India

Modernisation holds the key to SAILs fortunes in the near future The objective of the Rs15000-crore

modernisation drive is to upgrade steel-making technologies and productive capacity and in the process

become more energy-efficient and improve quality The key component of the ongoing modernisation drive

- already completed at Rourkela and Bokaro - is the replacement of open hearth furnaces and ingot casting

facilities with basic oxygen furnaces for steel-making and employing continuous casting techniques A

senior SAIL official says Continuous casting and basic oxygen furnaces ensure better quality steel through

processes more easily monitored for quality control The basic oxygen surfaces method is significantly

faster more automated and permits greater flexibility Continuous casting is more efficient than the

traditional ingot casting methods and gives increased yields while enabling better quality standards SAIL is

also modernising its finishing mills and is adding secondary refining facilities to improve quality

Safety measures

A unique feature of safety management in steel industry is that a bipartite forum named Joint

Committee on Safety Health and Environment in Steel Industry (JCSSI) was formed in 1973 at national

level having representatives from steel plants in SAIL RINL TISCO and Ispat Group All the Central Trade

Unions are represented on this Committee With a view to inculcate safety consciousness JCSSI organises

seminars workshops training programme safety competitions for member organisations JCSSI with the

co-operation and support of Trade Union representatives formulates policies and guidelines for its member

plants and monitors the implementation

Tata Steel

Safety has always been a prime focus at Tata Steel A Safety Committee a Safety department and a

Safety Trophy helped spread the message all across the company

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 45: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

TATA reaffirms its commitment to provide safe working place and clean environment to its employees

and other stakeholders as an integral part of its business philosophy and values We will continually enhance

our Environmental Occupational Health amp Safety (EHS) performance in our activities products and

services through a structured EHS management framework Towards this commitment we shall

Establish and achieve EHS objectives and targets

Ensure compliance with applicable EHS legislation and other requirement and go beyond

Conserve natural resources and energy by constantly seeking to reduce consumption and promoting

waste avoidance and recycling measures

Eliminate minimize andor control adverse environmental impacts and occupational health and

safety risks by adopting appropriate state-of-the-art technology and best EHS management

practices at all levels sand functions

Enhance awareness skill and competence of our employees and contractors so as to enable them to

demonstrate their involvement responsibility and accountability for sound EHS performance

Steel Authority of India

SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp

activities- SAIL also has a comprehensive safety policy

Annual Performance Plans (APP) for the areas of safety and fire services are formulated and review

of implementation of APP is done during Heads of Safety meeting

Internal and external safety audits of major departments particularly hazardous areas are conducted

every year and points arising from these audits are liquidated Safety aspects have been incorporated

in standard operating practices (SOP) and standard maintenance practices (SMP)

All major capital repairsshut downs are closely monitored round the clock Periodic drives are

conducted to inculcate safety awarenessculture up to grass-root level apart from regular inspections

as per checklists to identify unsafe conditionsacts

Safety training is imparted to target group employees at various levels HRD intervention in the area

of safety covers Heads of Departments Line Managers amp Departmental Safety Officers Besides area

specific workshops are conducted at different locations on important topics like gas safety railroad

safety safety in iron steel amp coke making etc

Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the

company by taking measures like intensive safety drives in works area and conducting safety audits in

hazardous departments of different plants and mines In addition specific workshops on safety aspects were

organised in various SAIL steel plants

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 46: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Measures taken by Indian government to improve the industry

Now letrsquos have a look over what government has done to make the industry competitive in world

market Government has taken several initiatives in last decade to improve the steel industry The main steps

taken for this are as follows-

1 In the new Industrial Policy announced in July 1991 Iron and Steel industry among others was

removed from the list of industries reserved for the public sector and also exempted from the

provisions of compulsory licensing under the Industries (Development and Regulation) Act 1951

2 With effect from 24th May 1992 Iron and Steel industry has been included in the list of `high priority

industries for automatic approval for foreign equity investment up to 51 This limit has been recently

increased to 100

3 Price and distribution of steel were deregulated from January 1992 At the same time it was ensured that

priority continued to be accorded for meeting the requirements of small scale industries exporters of

engineering goods and North Eastern Region of the country besides strategic sectors such as Defence

and Railways

4 The trade policy has been liberalised and import and export of iron and steel is freely allowed There are

no quantitative restrictions on import of iron and steel items covered under Chapter No 72 of the

ITC(HS) Code The only mechanism regulating the imports is the tariff mechanism Tariffs on various

items of iron and steel have drastically come down since 1991-92 levels and the government is

committed to bring them down to the international levels In Chapter 72 there are two items viz

72042110 and 72042910 which fall in the restricted list of imports

5 Iron amp Steel are freely importable as per the Extant Policy

6 Iron amp Steel are freely exportable

7 Advance Licensing Scheme allows duty free import of raw materials for exports

8 The floor price for seconds and defectives continues till date

9 Imports of seconds and defectives of steel are allowed only through three designated ports of Mumbai

Calcutta and Chennai

10 Mandatory pre inspection certificate by a reputed international agency for every import consignment of

seconds and defectives

11 In budget 2004-05 the customs duty on nonalloy steel was reduced from 15 to 10 per cent and on

alloy steel from 20 per cent to 15 per cent In August 2004 the customs duty on non-alloy steel was

further reduced from 10 per cent to 5 per cent on meltingscrap from 5 per cent to zero and on ships

for breaking from 15 per cent to 5 per cent

12 Further customs duty on several raw materials used by the steel sector like noncoking coal metcoke and

nickel has been reduced to 5 per cent and on coking coal to zero

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 47: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

13 To bring down the prices of steel the excise duty on steel products was reduced from 16 per cent to 8 per

cent with effect from February 28 2004 with a caveat that the duty regime will be reviewed Budget

2004-05 revised this partially by increasing the duty from 8 per cent to 12 per cent as the intended

impact of duty cut on moderating prices was not achieved

14 The union Budget 2007-08 the import duty on seconds and defective has been further reduced from 20

to 10

Special assistance being provided by Ministry of Steel to Private Sector

1 Ministry of Steel is extending all possible support as detailed below for the development of Iron and

Steel Sector in the country

2 The Ministry is providing linkage for raw materials rail movement clearance etc for new plants and

expansion of existing ones wherever applied for

3 To ensure an un-interrupted supply of raw materials to the producers

4 The Ministry has been interacting with All India Financial institutions to expedite clearance of projects

5 Regular interactions with Entrepreneurs who are proposing to setup Iron and Steel Plants are held at the

level of Secretary

6 Ministry of Steel identifies infra-structural and related facilities required by steel industry so that their

absence does not lead to bottlenecks in the future growth of the Iron and Steel Sector and takes up these

issues with the concerned ministries

7 The Ministry has encouraged the setting up of Institute for Steel Development and Growth (INSDAG)

in Calcutta in August 1996 The leading steel producers in the country are members of this Institute

which has been set up with the objective of promoting developing and propagating the proper and

effective use of steel

8 In order to resolve the problems faced by existing amp new steel plants amp to assist major steel plants being

implemented Govt has setup a Project Coordination Group under the Chairmanship of Steel Minister

NATIONAL STEEL POLICY 2005

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 48: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

The progress of the steel industry has a critical influence on the pace of Indiarsquos development and as such

great importance is attached to capacity expansion in line with expected demand at cost and prices which

make Indian steel internationally competitive The existing regime of liberalization decontrol and

deregulation of industry in the country has opened up new opportunities for the expansion of the steel

industry With a view to accelerating the growth of the steel sector and attaining the vision of India

becoming a developed economy by 2020 the Ministry of Steel formulated a National Steel Policy (NSP) in

2005

The following salient features can be derived after analysing the NSP 2005

1 The NSP sets out a broad roadmap for the Indian Steel Industry in its journey towards reform

restructuring and globalisation

2 The long-term goal of the NSP is that India should have a modern and efficient steel industry of world

standards catering to diversified steel demand The focus of the policy is to achieve global

competitiveness not only in terms of cost quality and product-mix but also in terms of global

benchmarks of efficiency and productivity

3 In order to achieve the goal of 110 million tones of steel production by 2019-20 the NSP seeks to

remove the supply-side constraints to the growth of this industry in an open globally integrated and

competitive environment

4 The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal On the

demand side the strategy would be to create incremental demand through promotional efforts creation

of awareness and strengthening the delivery chain particularly in rural areas On the supply side the

strategy would be to facilitate creation of additional capacity remove procedural and policy bottlenecks

in the availability of inputs such as iron ore and coal make higher investments in RampD and encourage

the creation of infrastructure such as roads railways and ports

5 The NSP acknowledges the low per capita consumption of steel in the country especially in the rural

areas and the need to boost steel consumption to improve quality of life and help in meeting the growing

aspirations of masses

6 In order to achieve the strategic goal of 110 MT of steel production by 2019-20 the industry would need

additional capital In addition funds would be required for technological upgrade of existing facilities In

order to mobilize such vast resources NSP seeks to encourage foreign direct investment In addition the

policy also seeks to make the fiscal incentives available to infrastructure projects accessible to the steel

industry

7 The NSP seeks to support developing of risk-hedging instruments like futures and derivatives to contain

price volatility in the steel market

8 The NSP seeks to strengthen the existing training and research facilities available to the domestic steel

industry so as to provide suitable training programmes especially for the secondary small-scale units and

also to collect and analyse data on important parameters of the industry

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 49: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

9 The NSP seeks to mount aggressive RampD efforts to create manufacturing capability for special types of

steel substitute coking coal use iron ore fines develop new products suited to rural needs enhance

material and energy efficiency utilize waste and arrest environmental degradation

10 The NSP acknowledges the important role played by the secondary steel sector in providing

employment meeting local demand of steel in rural and semi-urban areas and meeting the countryrsquos

demand of some special products and seeks to endeavour to provide the necessary feedstock to these

units at reasonable prices from major plants through the existing mechanism of State Small Industries

Corporations

11 The NSP recognizes the fact that integration of the Indian steel industry with the global economy

requires that the industry should be protected from unfair trade practices The NSP therefore envisages

institution of mechanisms for import surveillance and monitoring export subsidies in other countries

The present per capita consumption of steel in the country is very low compared to the world average As

mentioned above one of the objectives of the NSP is to augment the demand and consumption of steel in the

country by conscious promotion of steel usage With a view to create a mass awareness campaign on

conscious promotion of steel usage a lsquoSteel Promotion Coordination Committeersquo has been formed under the

Chairmanship of Secretary Ministry of Steel consisting of major steel producers The Committee is being

serviced by Institute for Steel Development and Growth (INSDAG) The objective of the Committee is to

promote steel usage in the country by way of an awareness campaign with particular emphasis on rural

sectors The Committee also aims at educating the designers architects builders and planners regarding the

qualitative and cost effective applications of steel in various structures including buildings bridges flyovers

and airports

Exports

Similar optimism prevails with regard to export of iron and steel Export of steel starting from a

negligible amount in 1991-92 has increased to 55 million tonnes in 2003-04 Exports in 2004-05 were lower

at 46 million tonnes primarily because of rising domestic demand and low capacity additions Exports now

constitute around 17 per cent of total production and Indias presence in the developing and developed world

is being increasingly felt Indian steel producers have recently been able to supply specialized grades and

products used for sophisticated applications like automobiles On the cost front some of our producers are

counted amongst the least cost producers of the world For an average reference plant India is competitively

placed in the middle of the hierarchy of steel producing nations

However we have a long way to go to catch up with the leading exporters of the world such as Japan

the CIS countries Brazil etc It is however expected that by 2019-20 India will be able to export around 26

million tonnes of steel representing 24 per cent of total projected production The projected export ratio

compares well with the current worldwide export ratio of 27 per cent (excluding intra-regional trade)

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 50: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

The projected production of steel by 2019-20 to meet the domestic and export demand will be around

110 million tonnes Management of resources and infrastructural growth is going to be critical in

achievement of the production level envisaged The broad requirements of various resources will increase

manifold from the current level The bottlenecks in availability of critical inputs and various facilities need

to be removed through concerted efforts of Government and industry The broad strategy to overcome these

constraints as well as meet the strategic goals of the steel sector has been discussed in the National Steel

Policy which has been recently approved by the Government

As stated earlier the long-term goal of the National Steel Policy is that India should have a modern

and efficient steel industry of world standards catering to a diversified steel demand The focus of the policy

is to achieve global competitiveness not only in terms of cost quality and product mix but also in terms of

global benchmarks of efficiency and productivity The policy envisages adopting a multi-pronged strategy to

achieve these goals On the demand side the strategy would be to create incremental demand through

promotional efforts creation of awareness and strengthening the delivery chain particularly in rural areas

On the supply side the strategy would be to facilitate creation of additional capacity remove procedural and

policy bottlenecks in the availability of inputs such as iron ore and coal make higher investments in RampD

and HRD and encourage the creation of infrastructure such as roads railways and ports

CONCLUSION

The Indian steel industry responded enthusiastically to the liberalization and large capacities were

created in the private sector The plants which came up post 1991 like Vizag Steel (RINL) in the public

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 51: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

sector and Essar Steels Ispat Steels Jindal Vijayanagar etc in the private sector used the modern state-of-

the-art technologies However because of decontrol removal of duty protection free import dumping from

China and CIS and above all a global economic melt-down in the latter half of 90s the industry went

through a major crisis The period from 1997-2001 marked the worst for the industry with price decline

poor capacity utilization inventory pile up dumping through unofficial channels and high interest burden

Meanwhile the industry is already into an expansion mode with all steel majors like SAIL Tata Steels

RINL Ispat Jindals and Essar hiking their capacities States like Orissa and Jharkhand rich in iron ore are

attracting major investment interest both from domestic and international majors There is however some

concern regarding the differential treatment meted out to overseas players to attract investment mainly in

respect of export of iron ore In the final analysis the industry scenario is expected to radically alter in the

coming years

However the public sector is expanding its capacities but it has more potential lies within to

perform more than that

Utilization of capacities in public sector is more than that of private sector but the

performance still has to be improved

Public sector has increased its profit over the year particularly in 2006-07

Both the companies are planning to adopt modern technology which is going to help them to

compete in world market but they need to be less dependent on state of art technology and

coal for long term prospects

Public sector has undergone retrenchment for the employees and improved has its lobour

productivity but it is still lacking behind as compared to private sector

SAIL has reduced the no of accidents due to improper handling of machinery still no of

accidents are more than that of TATA Steel

Most of the plans to achieve the significant position in world market will remain on paper

unless adequate attention is given to augmentation of infrastructure ie roads ports railways

power etc

These areas are of prime concern and the policy envisages a High Level Monitoring Group which will

not only prepare action plans in consultation with the concerned Ministries but also coordinate

development of the required facilities There are tremendous challenges ahead of us but these have to be

met comprehensively if we are to take our legitimate place in the world as a developed nation by 2020

BIBLIOGRAPHY

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector
Page 52: 22963531 Project Report on Comparative Analysis of Public and Private Sector Steel Companies in India

Annual report (2006-07) published by ministry of steel

Annual report (2006-07) published by TATA Steel

Presentation on lsquoPERFORMANCE HIGHLIGHTS 2006-07rsquo and lsquoDIRECTORS REPORTrsquo posted

by SAIL on its website

lsquoBackground Notersquo prepared after lsquoECONOMIC EDITORSrsquo CONFERENCErsquo held on 07 Nov 2006

Article published in magazine lsquoFRONTLINErsquo in December 2006 edition

wwwsteelnicin (Official website of ministry of industry)

wwwtatasteelcom (Official website of TATA Steel)

wwwsailcoin (Official website of Steel Authority of India)

wwwworldsteelorg (official website of International Iron amp Steel Institute)

wwwjpcindiansteelnicin (Website of joint planning committee)

  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • IN PARTIAL FULFILLMENT OF REQUIREMENT FOR AWARD OF
  • DATA ANALYSIS
  • Comparison between TATA Steel and Steel Authority of India
  • Production
  • Quantity 000 Tonnes
  • Financials
  • Research and Development
  • (Rs Crore)
  • TATA Steel
  • Steel Authority of India
  • TATA Steel
  • Emissions effluents and wastes
  • Emissions
  • Waste handling
  • Effluent Management
  • Steel Authority of India
  • Solid Waste Management
  • Environmental Plantation
  • Environmental Recognitions
  • Workforce and Welfare of Society
  • TATA steel
  • 1 In 1916 Social Welfare Scheme was formed by Tata Steel to provide assistance in the fields of education vocational training self-employment and family welfare
  • 2 Tata Steel has hosted the Lifeline Express the worldrsquos fi rst hospital on a train 12 times This facility provides on-the-spot diagnostic medical and advanced surgical treatment for preventive and curative interventions to people in inaccessible rural areas
  • 3 Sir Dorab Tata personally financed four athletes and two wrestlers from India for the 1920 Antwerp Olympics
  • 4 The JRD Sports Complex an international stadium with an 8-lane polyurethane track was inaugurated in 1991 The complex also houses facilities for handball tennis volleyball hockey basketball boxing table tennis and a modern gymnasium
  • 5 The Tata Steel Family Initiatives Foundation is engaged in off ering health services for the betterment of the people in and around Jamshedpur
  • 6 At times of natural calamities the company has rushe immediate relief and off ered long-term assistance to tsunami-hit Tamil Nadu earthquake-torn Gujarat fl ood ravaged Orissa and other such aff ected areas
  • 7 Horse-riding lessons the Jubilee Amusement park the zoological park etc off er a unique environment for the children of Jamshedpur to grow up in
  • 8 In a recent survey conducted on lsquoQuality of Lifersquo by AC Nielsen ORG-MARG Jamshedpur has emerged as the one of the best cities in India
  • Steel Authority of India
  • The manpower strength as on 31st March 2006 was 138211 comprising 15206 executives and 123005 non-executives The total reduction in manpower achieved during the year stood at 4864 which included separation of 881 employees through voluntary retirement The labour productivity improved by around 12 over previous year to 150 tonne crude steelmanyear
  • Technology
  • Steel Authority of India
  • Safety measures
  • Tata Steel
  • Steel Authority of India
  • SAIL has a separate corporate unit called the SAIL Safety Organisation to monitor safety system amp activities- SAIL also has a comprehensive safety policy
  • Consistent efforts were made by SAIL Safety Organisation for improving safety standards in the company by taking measures like intensive safety drives in works area and conducting safety audits in hazardous departments of different plants and mines In addition specific workshops on safety aspects were organised in various SAIL steel plants
  • Measures taken by Indian government to improve the industry
  • Now letrsquos have a look over what government has done to make the industry competitive in world market Government has taken several initiatives in last decade to improve the steel industry The main steps taken for this are as follows-
  • Special assistance being provided by Ministry of Steel to Private Sector