Par panel pulls up SAIL for delays in modernisation plans
New Delhi: A parliamentary panel Thursday pulled up the state-run Steel Authority of India Ltd (SAIL) for delay in implementation of its ongoing expansion and modernisation plan, resulting in almost stagnant production for the last four years.
The Standing Committee on Coal and Steel tabled in Parliament said it observed that orders worth around Rs 58,000 crore have been placed against which actual expenditure of Rs 42,893 crore has been incurred till Feb'13.
However, it said, "the Committee are unhappy to note that physical performance of the company indicate a stagnant production as approx 14.5 MT of hot metal 13.6 MT of crude steel, 12.8 MT of saleable steel and 0.3 MT of pig iron during each of the last four years".
The committee chaired by Trinamool Congress Member Kalyan Banerjee, asked the government and the PSU to expedite expansion.
"The Committee desire the Government/SAIL to make all out efforts to ensure that the modernisation and expansion plan is not dragged on year after year and is completed during the current fiscal to avoid cost and time overrun," it said.
SAIL has been implementing modernisation and expansion plan of its five integrated steel plants at Bhilai, Bokaro, Rourkela, Durgapur and Burnpur and at the special steel plant in Salem to increase capacity of crude steel from 12.84 million tonnes per annum (MTPA) to 21.4 MTPA.
Of this, expansion of Salem plant has been completed in 2010-11.
The Committee said it is "anguished to note that due to poor performance of the contractors, the completion of modernisation and expansion of Bhilai and Durgapur steel plants have been delayed, resulting in underutilisation of outlays".
It said against the project cost of Rs 18,884 crore, only Rs 7,353 crore has been spent so far by Bhilai plant.
Similarly, out of a project cost of Rs 3,164 crore, Durgapur plant could spend only Rs 1,282 crore so far.
In case of Bokaro plant, project implementation has been delayed with the plant likely to be completed in June 2013 in place of December 2011, the Committee added.
Further it said, "What is disturbing to the Committee is that IISCO expansion project which was to be completed by December 2010, has been delayed and now the completion will be by June 2013."
It has also sought to know the resultant enhancement of production due to expansion plans as well as "action taken against the contractors who have failed to achieve the milestones, causing delays".
The government earlier had said that the current phase of modernisation and expansion plan of SAIL is likely to be completed progressively by 2013-14.