Steel Min reviews performance of Sponge Iron India Ltd

New Delhi, Aug 25 (UNI) Minister for Steel Akhilesh Das said today Hyderabad-based Sponge Iron India Ltd (SIIL) should endeavour for value additions by exploring mining sites until it is incorporated in steel behemoth SAIL.

He was reviewing the performance of SIIL during 2005-06 and the first quarter of the current fiscal.

The public sector company is proposed to be merged with the SAIL by March 31, 2007 subject to clearance, an official spokesperson said here.

Regarding the Minister's advise to the company to go in for billet mining at the review meeting, SIIL management pointed out its constraints due to which the company could record a net profit of only Rs 3.18 crore in 2005-06 compared to Rs 20.33 crore in the previous year.

SIIL, which has pioneered the development of coal-based sponge iron industry in the country, has been providing consultancy service in setting up sponge iron plants in India and training manpower.

Currently SIIL is providing its expertise in sponge iron mining to Peru in South America.

UNI SD DKS HT1617