November 22, 2008

SAIL input costs in 2007-8 increase

DNA Money reported that Steel Authority of India Limited has seen its raw materials cost rising by 5% over the last year. The rise in the cost of raw materials such as coking coal, ferroalloys and nickel etc have pushed up SAIL’s expenditure by a whopping INR 13,963.77 crore in 2007-08.

SAIL officials told DNA Money that the expenditure would have been higher if it wasn’t for savings of INR 328 crore achieved during the year through better fund management.

SAIL has taken steps to increase coking coal and thermal coal output in captive mines at Chasnalia, Ramnagore and Jitpur. It has also initiated the process of developing new coking coal at Tasra and Sitanala in Jharkand.

SAIL has also applied for licence and mining leases in new areas in Jharkhand and Orissa for iron ore, manganese ore, nickel and chromium ore.