Tag Archives: SAIL

JS Mathur will continue to hold additional charge as Secretary Rural Development

Newsroom24x7 Staff

north blockNew Delhi: The additional charge of the post of Secretary Department of Rural Development in the Ministry of Rural Development assigned to J.S. Mathur, IAS (MP:1982), Secretary Ministry of Panchayati Raj has been extended today for a period of three months beyond 24 May 2016.

The Appointments Committee of the Cabinet also approved today that proposal of the Department of Defence production for appointment of S.K. Jha to the Post of Director (Production and marketing) in Mishra Dhatu Nigam Limited at Hyderabad for a period of 5 years.

The ACC also approved today the proposalof Department of Heavy Industries for extension in tenure of SPS Bakshi as Chairman-cum-Managing Director (CMD) of EPIL for a further tenure beyond 4 February 2014, which is the date of expiry of his 5 year tenure, till 30 September 2018 (the date of his superannuation).

additionally, ACC has approved the proposal of the Department of Heavy Industry for appointment of SS Rawat, Deputy general Manager Steel Authority of India (SAIL) to the post of Director (project management), Bridge and Roof Co.(India) Limited for a period of five years.

More orders issued today are as as follows:

S K Sinha , Others , 0                            

Dr K Vijay Raghvan , Others , 0                            

Shobhana Joshi , Indian Defence Accounts Service , 1979                            

S R Medhi , Others , 0                            

Dr. Lalit Kumar , Others , 0                            

Ameising Luikham , Indian Administrative Service , AM , 1981                            

Vivekanand , Others , 0                            

Shri D K Hota , Others , 0                            

Shri U C Muktibodh , Others , 0
Shri S Singha Roy , Others                            

Dr. Amarjit Singh , Indian Administrative Service , GJ , 1982                            


Fitch Downgrades Steel Authority of India to ‘BB’, Outlook Negative

Newsroom24x7 Staff

SAILSingapore: Fitch Ratings has downgraded Steel Authority of India Limited’s (SAIL) Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB’ from ‘BBB-‘. The Outlook is Negative.

The downgrade follows the deterioration in SAIL’s financial profile after a prolonged weakening in international steel prices. SAIL’s debt-funded capex programme has magnified the impact of weak prices. SAIL posted an EBITDA loss of INR25.3bn in the nine months to 31 December 2015, compared with an EBITDA of INR36.8bn a year earlier, due to weak steel prices, competition from increased steel imports into India and muted steel demand growth in India.

Fitch expects SAIL’s financial profile to remain weak for the next 18 months and improve only moderately towards the end of the financial year to 31 March 2018 (FY18). Indian steel demand is likely to improve over the medium term, which will support better profitability at SAIL. This will help the company to reduce net leverage to below 4.5x after FY18.

The Negative Outlook reflects the risk of further weakening in steel prices, increases in Indian steel imports and weaker-than-expected steel demand over the next 12-18 months, which would make it difficult for SAIL to improve its profitability and thus its leverage.


Challenging Market Dynamics: Indian steel makers have been battling falling steel prices, high imports and muted demand during the last 12 months. The imposition of a minimum import price by the Indian in February 2016 and the extension of a safeguard duty on certain steel imports till March 2018 will provide some relief to domestic producers. Indian steelmakers’ profitability is likely to improve during 4QFY16 and 1HFY17. However, muted demand and expectations of overcapacity will limit the benefits of the measures for Indian steel producers in 2016. Fitch expects profitability of Indian steel producers, including SAIL, to remain weak in FY17.

Weak Financial Profile: SAIL’s financial profile has deteriorated significantly due to the EBITDA losses and increasing debt levels driven by its capex. We expect SAIL’s financial profile to remain weak in FY17 with minimal improvement in EBITDA margin and additional debt from the final stage of its capex programme. SAIL’s financial profile is likely to improve only from FY18, when sales volumes increase and profitability widens following better operating efficiency and cost control measures. Fitch expects SAIL’s net leverage to reduce below 4.5x by FY19.

Capex Largely Complete: SAIL’s has almost completed its capex programme for modernising and expanding its manufacturing facilities after significant delays. Only the expansion of the Bhilai steel plant has yet to be finished. SAIL is enhancing its crude steel capacity to 21.4 million tonnes per annum (FY15: 13.9 mtpa) and has spent INR615.5bn so far towards modernisation and expansion of the manufacturing facilities, and increasing iron ore and coal mining capacity. The delay in completion of the capex from the originally planned end-FY13 or early FY14, has resulted in weaker than expected cash flows and significantly higher debt.

Comfortable Liquidity: SAIL had cash balance of INR20bn and unutilised working capital limits of around INR11bn at the end of 2015. This compares with debt maturities of INR16.6bn in FY17. SAIL’s cash balance has been steadily decreasing due to its capex programme. However, with its major capex projects nearing completion, Fitch expects SAIL’s liquidity to remain adequate. SAIL also has strong access to the Indian debt market.

Leadership Position: SAIL is largest manufacturer of steel in India. This position is supported by its high level of vertical integration. The company supplies all its iron ore requirements and it meets about two-thirds of its power needs from its captive power plants. However, SAIL has limited coking coal integration and imports more than 80% of its requirements. SAIL’s leadership is also supported by its established brand, country-wide sales network and presence in almost the entire range of low-carbon steel products.

Government Linkages: SAIL’s rating incorporate a one notch uplift on its stand-alone credit profile reflecting the moderate linkages with the state, India (BBB-/Stable), in line with Fitch’s Parent and Subsidiary Rating Linkage methodology. The state owns 75% of SAIL’s equity and retains significant control of the company. As one of seven state-owned entities granted Maharatna status by the government, SAIL enjoys significant operational and financial autonomy, including being able to decide on investment of up to INR50bn, or 15% of its net worth, in a project.


Fitch’s key assumptions within the rating case for SAIL include:

  • Indian steel demand growth of around 5% in FY17, which will accelerate to around 8% over the medium term, resulting in SAIL’s sales volume increasing around 15% over the medium term
  • Stable Indian steel prices around current levels supported by continuation of government measures to check significant rise in steel imports during FY17
  • Capex of around INR550bn over the next two years with completion of expansion of the Bhilai steel plant during FY17


Positive: Future developments that may, individually or collectively, lead to the Outlook being revised to Stable include:

  • Improvement in SAIL’s financial performance, resulting in net leverage (net debt/ operating EBITDA) falling below 4.5x on a sustained basis

Negative: Future developments that may, individually or collectively, lead to negative rating action include:

  • SAIL’s failure to demonstrate that it is on track to deleverage to below 4.5x on a sustained basis;
  • Any significant weakening of linkages with the state.

One year of Modi Rule: People’s confidence has been restored by facing the challenges confronting the nation

Lalit Shastri

Union Minister for Mines and Steel Narendra Singh Tomar addressing a press conference to mark the completion of one year of the NDA government, in Bhopal on June 08, 2015. Minister of State for Mines and Steel Vishnu Deo Sai is also seen.
Union Minister for Mines and Steel Narendra Singh Tomar addressing a press conference to mark the completion of one year of the NDA government, in Bhopal on 8 June 2015. Minister of State for Mines and Steel Vishnu Deo Sai is also seen.

Bhopal: Union Minister for Mines and Steel Narendra Singh Tomar today said when the new Government came to power in New Delhi on 26 May 2014, the country was confronted with diverse problems, including a tottering economy and a series of scams, but Prime Minister Narendra Modi accepted these challenges and within a year he has succeeded in restoring people’s confidence in the Government by ensuring speedy and transparent decisions and firm steps to combat the scourge of corruption.

Tomar was addressing a press conference here to mark the completion of one year of the NDA government on Monday. Giving a panoramic view of the overall scenario, he said that under the leadership of Narendra Modi, the Centre-State relations have improved and the states are now enjoying more power. Our relations with neighburing countries and also with other countries have improved, he said adding India’s, GDP from 5% last year, has now gone up to 7.4%. Similarly the inflation rate has also come down from 10% last year to 5 % this year.

At the Prime Minister’s initiative, Tomar said, the Black Money Bill was introduced and passed by both Houses of Parliament and the Special Investigation Team (SIT) is in place to combat black money. The Minister brought under spotlight the CAG conclusion that the exchequer suffered a loss of Rs. 1,76000 crore in coal allocation and emphasised the the fact that this amount is much less than the loss in real terms. To explain the point, Tomar said that with the auction of just 34 of the 204 coal allocations cancelled, Rs. 2,00,000 crore have been raised. Even in the spectrum acution a revenue of Rs. 1,10,000 crore has been generated.

Tomar underscored the amendments to the Mining and Minerals Development and Regulation (MMDR) Act and said that illegal mining now has higher penalties up to 5 lakh rupees and imprisonment up to 5 years. Regarding the Farm sector, he said that adequate relief is now guaranteed to farmers suffering damage to their standing crops due to natural calamities. Now the compensation for crop damage due to natural calamity will be assessed on the basis of crop damage of 33% and not 50%, he pointed out.

The Minister said that the Prime Minister’s Rural Road project will be carried forward and 50,000 kilomters of new tar roads are planned to be constructed to connect villages. The priority is also to expand the irrgation capacity to cover every piece of agriculture land in the country.

Tomar drew attention to the Jan Dhan scheme launched by Prime Minister Modi to provide bank accounts to the poor and how 15 million bank accounts with a deposit of Rs. 15000 crore, have been opened under this scheme.

The Minister said that 50 crore people in India are working in the unorganised sector. For them the smart card scheme has been introduced. He also threw light on the ambitious Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojna.

On the mining front, Tomar said that the Centre has not been discriminatory towards any state and pointed out that all the states are going to benefit from the hike in mining royalty. To eliminate corruption and bring accountability, the only route for mineral allocation now will be e-auction. In India, there is mining potential in 8,00,000 square kilometers but miningis being done only on 1% of this area. hence a Mineral Exploration Fund is is being set up for exploration purpose.

The Steel Ministry plays the role of coordination. Spelling out the target, he said Steel Authority of India (SAIL) now produces 13 million tonnes of Steel and by September this year the capacity will increase to 23 million tonnes. The target is to touch 50 million tonnes by 2025.

Union and State Governments are pillars of “Team India”: Narendra Modi

PM dedicates to the nation 2.5 MT steel plant at Burnpur

Newsroom24x7 Desk

IISCO-BurnpurBurnpur (West Bengal): Prime Minister Narendra Modi today described the Union Government and 29 State Governments as 30 pillars of “TEAM INDIA” which would take India forward.

The Prime Minister was addressing a large public meeting after dedicating to the nation the 2.5 MT modernized and expanded IISCO steel plant here.

Modi drew attention to various instances of cooperative federalism in recent months, including the setting up of the NITI Aayog, and the devolution of additional revenues to the States through acceptance of the recommendations of the 14th Finance Commission.

The Prime Minister said that the decades old “Land Boundary” issue between India and Bangladesh has been successfully resolved through the spirit of Team India, as all state governments and political parties had come together to help in the resolution of this issue.

The Prime Minister said it is time for India to address the issue of “geographical imbalance” along with the complex issue of economic and social imbalance. He said that eastern India also should develop as fast as western India and for that, development of Bengal is essential.

The Prime Minister said “District Mineral Foundations” would be set up to help speed up progress and welfare of the poor in the mineral-rich districts. He said that all global rating agencies now agree that India is among the world’s fastest growing economies.