Steel prices to remain healthy: SAIL Chairman

Kolkata, Sep 11 (UNI) Steel prices in the country is expected to remain healthy through this year till March 2008, Steel Authority of India Limited (SAIL) Chairman S K Roongta said here today.

" We expect steel prices to remain healthy on the back of the projected demand growth of 16 per cent in 2007-08," he told reporters on the sidelines of a seminar organised by the Merchants Chamber of Commerce.

The SAIL Chairman said the company had targetted to increase production to 26 million tons by 2010 from the present 14 million tons involving an estimated cost of Rs.43,000 crore.

" We will maintain an equal debt equity ratio while financing our expansion projects," he said.

In reply to a question, Mr Roongta informed that SAIL had a cash surplus of Rs.10,000 crore which was likely to be invested in the expansion of production capacity.

SAIL, producing at present 30 per cent of steel produced in India, was aiming to maintain the share in the country's projected production of 200 million tons by 2020, he said.

Replying to another question Mr. Roongta said SAIL was interested in merger with Rashtriya Ispat Nigam Ltd (RINL) as both the companies were able to 'synergise' operations.

" We will gain from RINL's port based plant and geographical coverage if government approves the merger," he said.

UNI