Sail should strive to become international player: Paswan

New Delhi, Aug 19 (UNI) The Minister for Chemicals, Fertilisers and Steel Ram Vilas Paswan called upon the management of Steel Authority of India (SAIL) to become internationally competitive and to further augment its production capabilities to ensure the company maintains its position as a leading steel producer in the country, in the wake of POSCO and Mittal steel entering into the Indian steel scenario.

Addressing at the review meeting of the SAIL here, the minister said the performance of SAIL in the first quarter of the current financial year as well for the year 2005-06 was the best among the steel companies in India.

During the first quarter of FY07, the company has attained a record profit after tax (PAT) of Rs 1,386 crore, up by 23 per cent, over the comparable quarter of the previous financial year. In financial year 2005-06 SAIL had earned a profit of Rs 4,013 crore despite a lower net sales realisation as compared to the preceeding year.

In the first quarter of this year, SAIL's saleable steel production was around 3 million tonnes, displaying a healthy growth of around 9 per cent over the comparable period last year, while the growth in sales was around 30 per cent.

The minister desired that SAIL should extend its distribution network on a fast-track basis, particularly to the rural areas of India.

District level dealerships would be set up in all the uncovered districts and eligibility norms would be suitably relaxed for ensuring that the smaller players would also be able to take up SAIL dealerships for which preference is being given to SC/ST and other weaker sections.

Efforts would also be undertaken by the company to popularise the utilisation of steel in the rural areas.

At the meet Mr Paswan was informed that the process of merging Maharashtrta Electrosmelt Ltd (MEL), Bharat Refractories Ltd (BRL) and Neelachal Ispat Nigam Limited (NINL0 was on schedule and the process is expected to be completed by the later half of 2007.

Steel Secretary R S Pandey was also present during the meeting.

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