The Directors have pleasure of presenting the 42nd Annual Report of the
Company together with Audited Accounts for the Financial Year ended
31st March, 2014.
Your Company achieved a turnover of Rs.51,866 crore during the Financial
Year 2013-14 (FY 14), which is higher by 5% over the turnover during
the previous Financial Year. The Company registered an increase of
20.6% in its Profit After Tax (PAT), to Rs. 2,616 crore in FY 14 up from
Rs.2,170 crore in Financial Year 2012-13 (FY 13). The net worth of
company improved substantially from Rs. 41,025 crore as on 31st March,
2013 to Rs.42,666 crore as on 31st March, 2014 and this helped in
generation of internal resources for funding expansion plans of
Higher production and sales along with lower cost of imported coal
helped improve the bottom line, offsetting more than Rs. 1000 crore of
additional wage provision made during the year on account of revision
of wages/perks of non-executives pending w.e.f. 1.1.2012. Profit for
the year includes receipt of Rs.1056 crore from M/s Vale, Australia on
account of a favourable arbitration/court award in case of a commercial
dispute with SAIL. The comparative performance of major financial
parameters during the Financial Years 2013-14 and 2012-13 is given in
Management Discussion and Analysis Report.
Your Company continued its thrust on optimum utilization of funds by
better fund management. This included replacement of high cost short-
term loans with low cost debts, timely repayment of loans including
interest, strategic parking of surplus funds with scheduled banks,
actions for future fund raising etc. to meet our growth objectives.
Further, your Company hedged the foreign currency risk on Buyer''s
Credit and repayment of External
Commercial Borrowings depending on market conditions. The Company had
liquid assets of Rs. 2500 crore as on 31st March, 2014 invested in
short-term deposits with scheduled banks against borrowings of Rs. 25281
crore as on 31st March, 2014. The debt equity ratio of the Company
increased to 0.59:1 as on 31st March, 2014 as against 0.53:1 as on 31
st March, 2013, mainly on account of increase in borrowings during the
year to meet the capital expenditure requirements of the Company.
Capital expenditure of Rs. 9,890 crore was made during the year, which
was higher than the previous Financial Year.
The Company paid Interim Dividend @ 20.20% of the paid-up equity share
capital during the year, which is marginally higher than the total
dividend of 20% paid in FY ''13. The Board has decided to treat this
Interim Dividend as the total dividend for the year 2013-14. A sum of
Rs.264 crore was transferred to the general reserves during the year
(previous year Rs. 163 crore).
M/s India Ratings & Research Pvt. Ltd. and M/s CARE, RBI approved
credit rating agencies, maintained ''AAA'' ratings indicating the highest
safety, for SAIL''s long-term borrowing programme. The international
borrowings programme of the Company has been rated at ''BBB-'' by M/s
FITCH Ratings and M/s Standard & Poor''s, which is also the sovereign
rating of the country.
Your Company produced 12.9 million tonnes (MT) of saleable steel in
FY''14, registering an improvement of 4% over FY''13. Production of 14.5
MT of hot metal and 13.6 MT of crude steel was also 1% higher each than
corresponding period of last year (CPLY) respectively. All-time best
production of special quality & value added products of 5.42 MT was
achieved, which was 6% higher than FY''13. Power Plants maintained the
best ever power generation of 699 MW during 2013-14, with a growth of
1% over last year.
During the year SAIL took a major step forward on the modernization &
expansion front, with the new 4060 m3 Blast
Furnace (largest in the country) at Rourkela Steel Plant becoming
operational since August, 2013. It marked a new chapter in the
modernization and expansion of the company. Thereafter, other upcoming
facilities at RSP have also been operationalized. From June, 2014, the
entire integrated process route comprising the new Ore Bedding &
Blending Plant, 360 sq.m. Sinter Plant, the 7 m tall Coke Oven Battery
No.6, the 4060 m3 Blast Furnace No.7, the 3rd BOF, 2500 mm Slab Caster
and the Plate Rolling facility in the New 1.0 Million tonne per annum
Plate Mill are operational at RSP. Work in the finishing mill of the
Plate Mill will be completed shortly. The production from these
facilities is being ramped up. BSP experienced an incidence of gas
leakage in the Pump House of Blast Furnace Gas Cleaning Plant on 12th
June, 2014 resulting in loss of six precious lives. Causes of incident
were thereafter analysed and remedial measures taken. The units were
re-started within 7 days and were stabilised soon.
Research & Development (R&D)
Several initiatives have been undertaken for implementation of the
ambitious R & D Master Plan of SAIL, initiated under three broad
categories namely, Centre of Excellence(CoE) Projects, High Impact
Projects (HIP) and Technology Missions (TM) Projects.
The successes achieved under CoE Projects include, introduction of Roll
Bite Lubrication System in all the finishing stands of Hot Strip Mill
at Bokaro, increase in the average campaign life of Steel ladle in
SMS-II, Bokaro Steel Plant from 80 to 89 heats using in-house SRU (SAIL
Refractory Unit) bricks.
Under High Impact Projects where headway has been made are,
beneficiation of iron ore fines/Slimes, modification in CDI and Coke
Ovens door system, Micro pelletisation of sludge and its re- use in
Sinter Plant. For use of BF slag for road making, studies are being
conducted with CRRI (Central Road Research Institute).
The Technology Missions being pursued by your Company are mainly, thin
strip casting and CRGO Steel production for which modalities for
technology transfer are being worked out.
Development of New Products
Your Company is proud to be a part of India''s Defence Indigenisation
initiatives, wherein its steel plants at Bhilai and Rourkela had
jointly developed and supplied DMR-249 grade steel for India''s first
indigenously developed aircraft carrier, Vikrant. Maintaining this
fervour for continuous improvement, your Company has developed several
new products during the year, further enhancing its extensive product
portfolio. The new products developed at different Plants are as
- Bokaro Steel Limited and Research and Development Centre for Iron and
Steel (RDCIS) have jointly developed a Super Formable/High Strength
Formable Steel specifically designed for producing cylinders in various
shapes to service the export market. The new grade of steel will bring
about more than 15% reduction in blank cylinder weight leading to a
significant reduction in both manufacturing costs as well as the cost
incurred in transportation and handling.
- Bhilai Steel Plant has developed High Toughness Corrosion Resistant
Rails to provide improved hardness and elongation and better fracture
toughness in rails supplied to Indian Railways.
- Durgapur Steel Plant has produced Aluminium killed IS 2062 E 410
blooms to cater to the latest trend of using high strength steel
members in electrical transmission towers to reduce weight and improve
- SAIL has also introduced Earthquake resistant Fe 415S and Fe 500S
grade TMT rebars complying with the IS 1786 standards, leading to TMT
bars with better ductility and toughness as compared to ordinary TMT.
During Financial Year 2013-14, total requirement of iron ore was met
from captive sources. The Company''s captive iron ore mines produced
about 25.32 million tonnes (MT). However, in case of coking coal,
around 18% requirement was met from indigenous sources (Coal India
Limited & captive sources) and balance through imports (11.36 MT).
During 2013-14, production in captive collieries of the Company was
about 0.69 million tonnes, out of which 0.58 million tonnes was raw
coking coal and balance 0.11 million tonnes of non-coking coal. In case
of fluxes, around 1.13 million tonnes of limestone and 1.05 million
tonnes of dolomite was produced resulting in total production of 2.18
million tonnes fluxes from captive sources. For thermal coal, your
Company depends entirely on purchases from Coal India Limited except
small quantity produced from captive mines.
During 2013-14, production at Gua Iron Ore Mines resumed on 12th April,
2013, after a gap of about two years, after obtaining forest and
environment clearance from Ministry of Environment & Forest (MoEF),
Government of India (GoI). Further, on 4th March, 2014,
MoEF, GoI granted Stage-I forest clearance for additional diversion of
361.295 ha of forest land in Durgaiburu lease of Gua Mine, thereby
making total diversion as 635.986 ha. Grant of the forest clearance has
paved the way for capacity expansion of the Gua Mines from present
level of 2.4 million tonnes per annum to 10 Million tonnes per annum.
Letter of Acceptance (LoA) has been placed for main package of capacity
Approval of Odisha Govt. on the report of the Technical Committee
regarding status of Karo-Karampada Elephant Corridor, in context of 5.1
Sq. Mile lease of Bolani Mines in Feb''14, paved the way for continued
operations in core iron ore bearing area of the lease and capacity
expansion of Bolani Mine to 10 Million tonnes per annum (MTPA).
For ensuring regular supplies of iron ore, capacities of existing iron
ore mines are being expanded and new iron ore mines are being
developed. Process for selection of Mine Developer-cum-Operator for
development of Rowghat and Chiria iron ore mines has been initiated.
In addition, new iron ore deposits in the States of Rajasthan,
Chhattisgarh, MP, Maharashtra, Odisha and Karnataka are being explored.
In this regard, Ministry of Mines, GoI, vide order dated 2.9.2013
accorded its approval for grant of mining lease for iron ore associated
mineral over 871.38 ha in village Dhul Khera, district Bhilwara,
Rajasthan in favour of SAIL for a period of 30 years.
Efforts are being made for allotment of new coking coal and thermal
coal blocks under Government dispensation route.
Hon''ble Supreme Court in its judgement passed on 16th May, 2014 in
respect of the PIL regarding illegal mining in Odisha has expressed
that in respect of mines where second and subsequent renewals are
pending with State Government, the mining operations cannot be allowed
without any express orders passed by State Government in terms of
Section 8(3), MMDR Act, 1957. In view of this order, the mining
operations of the mines of SAIL in Odisha viz. Bolani, Barsua & Kalta
running under the deemed extension provisions of Rule 24(A)(6) of MCR,
1960 were suspended by Odisha Government during the period 17th May,
2014 to 31st May, 2014, till the required express orders were issued by
State Government of Odisha.
Power Production and Consumption:
SAIL met about 67% of its total average power requirement of 1050 MW
through its own captive generation and the balance 33% power was
purchased from outside, mainly from grid utilities. With an aim to
reduce cost, the opportunity of cheaper power available in the Power
Exchange was utilised and total 19.7 MU was purchased for Salem Steel
Plant (SSP) from Indian Energy Exchange. This practice will be
The practice of gainful utilisation of surplus captive power available
at one Plant through wheeling to other Plants was also continued during
the year and about 25 MU was wheeled to Visvesvaraya Iron & Steel Plant
(VISL) in Karnataka from Bhilai Steel Plant (BSP) in Chhattisgarh
resulting in substantial cost benefits.
With an aim to ensure the availability of enhanced requirement of
reliable power after the completion of ongoing expansion, your Company
is in the process of augmenting its captive generation facilities and
Transmission & Distribution infrastructure. Power receiving substation
at Rourkela Steel Plant (RSP) was upgraded to 220 KV GIS during the
year and similar projects are under execution at Bokaro Steel Plant
(BSL) and Chandrapur Ferro Alloy Plant (CFP). Additional captive
generation capacity of 216 MW is under installation at various SAIL
Plants. In addition, expansion of capacity by 1x250 MW at RSP and 2x20
MW at Durgapur Steel Plant (DSP) is being carried out by NTPC-SAIL
Power Company Private Limited (NSPCL), a JV Company of SAIL and NTPC.
SALES AND MARKETING REVIEW
Notwithstanding the challenging market conditions during the year in
which the demand of steel in the country remained suppressed, your
Company achieved a total sales volume of 12.07 million tonnes during
the Financial Year 2013-14 registering a growth of 8.6% over Financial
Year 2012-13. Product categories where major growth were recorded in
domestic sales included: Plates: 12.7%, HR Coils: 7.8%, GP/GC: 23%.
The Company exported 0.47 million tonnes of steel during FY''14,
registering a growth of 28% over the previous year. New export markets
were developed, such as Saudi Arabia for Blooms, Canada for Plates and
Indonesia and Thailand for Slabs.
The Company''s Rural Dealer network was further expanded to 1004 number
of Rural Dealers, as on 31st March, 2014. With this, total number of
SAIL dealers stood at 2,948 as on 1st April, 2014. Records Retail sales
were achieved at 0.62 million tonnes, registering an increase of 14%
Keeping in view the projected demand for steel in the country, your
Company is currently implementing growth plan to enhance its Hot Metal
production from the level of 14.4 million tonnes during the Financial
Year 2013-14 to 23.5 million tonnes after expansion. The growth plan,
besides targeting higher production, also addresses the need for
eliminating technological obsolescence, achieving energy savings,
enriching product-mix, reducing pollution, developing mines and
collieries, introducing customer centric processes and developing
matching infrastructure facilities.
To maintain its current dominance in the domestic market and to meet
the future challenges, your Company is working on a long- term
strategic plan ''Vision 2025'', which will steer the Company towards a
target of 50 million tonnes of Hot Metal production, thereby meeting
the strategic objectives of achieving leadership in Indian Steel sector
and a position amongst the top Steel companies globally.
MODERNISATION AND EXPANSION PROGRAMME
Your Company is implementing Modernisation & Expansion Plan of its five
Integrated Steel Plants at Bhilai, Bokaro, Rourkela, Durgapur &
Burnpur. The modernization & expansion plan envisages increase in
production capacity of Hot Metal from 14.4 million tonnes per annum to
23.5 million tonnes per annum.
Orders for about Rs. 59,288 crore have been placed (till Mar''14) under
the current Modernisation & Expansion Plan of SAIL and a capital
expenditure of Rs.53,270 crores has been made under this program till
Mar''14. Facilities of about Rs.20,000 crore have been already
operationalized till Mar''14. This includes facilities at SSP, Raw
Material Handling Plant, Sinter Plant, COB-11 Complex, Wire Rod Mill at
ISP and New Sinter Plant-3 at RSP.
Further, during FY''14, production commenced from several new facilities
such as New Ore Bedding & Blending Plant, New Coke Oven Battery No.6
Complex including Coal Handling Plant, 3rd Single Strand Caster at RSP;
Coke Oven Battery No.2 at DSP; 2nd Sinter Machine in SP-3 at BSP. A
major achievement was recorded with the new 4060 m3 blast furnace
(largest in the country) at RSP operationalized from August''13. The
production has been ramped up from the furnace since then.
SAIL Board accorded ''in-principle'' approval during the year for various
new Projects with an estimated total outlay of around Rs. 7,862 crore
during the year.
A capital expenditure of Rs. 9,890 crore was incurred during the
Financial Year 2013-14 on this account and capex planned during 2014-15
is Rs. 9,000 crore.
The details of the Additions, Modification & Replacement (AMR) Schemes
under implementation are given in the Management Discussion & Analysis
HUMAN RESOURCE MANAGEMENT REVIEW
Your Company recognizes contribution of its Human Resources (HR) in
providing the competitive advantage. SAIL has achieved its present
level of excellence through investing in its human resource, whose
skill and knowledge constitute the basis of every initiative be it
technology or innovation. Developing skills and capabilities of
employees to improve manpower utilization and labour productivity is
the key thrust area of Human Resource Management (HRM) in SAIL.
Enhanced Productivity with Rationalized Manpower
Your Company achieved the highest ever Labour Productivity (LP) of 278
tonnes of crude steel (TCS)/Man/Year in 2013-14. The manpower strength
of SAIL was 97897 nos. (as on 31.03.2014) with manpower rationalization
of 3981 nos. achieved during the year. The enhanced productivity with
rationalized manpower could be achieved as a result of judicious
recruitments, redeployment strategies, multi-skilling, building
competencies and infusing a sense of commitment and passion among
employees to excel. Trend of enhanced productivity and manpower
rationalization since 2003-04 onwards is depicted below:
Developing Employee Capabilities & Competencies
In order to develop its human resources for harnessing their potential
and for according ample opportunity to employees for realizing
individual as well as organizational goals, your Company has been
making sustained efforts through various training and development
activities with focus on preservation of skills, transfer of skills and
knowledge, training in specialized/advanced skills and technology in
collaboration with reputed organizations and development of effective
managerial competencies through association with premier institutes.
Preparing employees for tomorrow, for effectively taking up challenges
and discharging new roles and responsibilities was given a major
thrust. Overall, 47187 employees were trained against target of 41340
employees during the year on various contemporary technical and
Harmonious Employee Relations
- Your Company has a glorious tradition of conducive and fulfilling
employee relations environment. The healthy practice of settling the
issues through discussions with trade unions/workers'' representatives
enabled workers'' participation at different levels and facilitated in
establishing a peaceful IR climate. The Company has an established
system of worker''s participation at different levels right from
National level upto Shop-floor level. Some of these forums are
functioning since early seventies and are sufficiently empowered to
address different issues related to wage, safety, and welfare of
workers, arising from time to time thus helping in establishing a
conducive work environment.
- Bipartite forums like National Joint Committee for Steel Industry
(NJCSI), Joint Committee on Safety, Health & Environment in Steel
Industry (JCSSI) etc. with representation from major central trade
unions as well as representative Unions of Plants/Units meet on a
periodic basis and jointly evolve recommendations/ action plans for
ensuring a safe & harmonious work culture which gets substantiated from
the harmonious Industrial Relations enjoyed over the years by SAIL
Plants/Units, marked with diverse work culture at multi-locations.
- In addition, Quality Circles, Suggestion Schemes, Shop specific
Performance Improvement Workshops also offer multiple avenues for
enhanced workers'' participation. Workers are also kept abreast of
strategic business decisions and their views sought through
- Communication with employees at various levels concerning wide range
of issues impacting the Company''s performance as well as those related
to employees'' welfare is carried out in a structured manner across the
Company. Mass communication campaigns are undertaken at the level of
Chief Executive Officers (CEO)/Senior Officers'' of the Plants involving
structured discussion with large group of employees. These interactive
sessions help employees to align their working with the goals and
objective of the Company leading to higher production & productivity
and enhanced employee engagement.
Grievance Redressal Mechanism
- Effective internal grievances redressal machinery exists in SAIL
Plants and Units, separately for executives and non- executives. The
grievance procedure in SAIL has been evolved after sustained
deliberations and involvement of employees, trade unions and
associations. Joint grievance committees have been set up at Plant/Unit
level for effective redressal of grievances.
- The grievances are dealt through a 3 stage grievance handling system
and employees are given an opportunity at every stage to raise
grievances relating to wage irregularities, working conditions,
transfers, leave, work assignments and welfare amenities etc. Majority
of grievances are redressed informally in view of the participative
nature of environment existing in the steel plants. The system is
comprehensive, simple and flexible and has proved effective in
promoting harmonious relationship between employees and management.
- There were 44 grievances pending for redressal as on 31.03.2013.
Number of grievances received during the period from 01.04.2013 to
31.03.2014 were 1127. During the year, 1157 grievances were disposed
off and 14 grievances were pending for redressal as on 31.03.2014.
INITIATIVES FOR SOCIO-ECONOMIC DEVELOPMENT OF SCs /STs and OTHER WEAKER
SECTIONS OF SOCIETY
Your Company follows Presidential Directives on Reservation for
Scheduled Castes (SCs) and Scheduled Tribes (STs) in the matter of
recruitments & promotions. As on 31st March, 2014, out of total
manpower of 97897, 15.95% belong to SC category and 13.77% belong to ST
SAIL steel plants and units including mines are located in economically
backward regions of the country with predominantly SC/ST population.
SAIL has contributed to the overall development of civic, medical,
educational, recreational and other facilities in these regions.
SAIL has undertaken several initiatives for the socio-economic
development of SCs/STs and other weaker sections of the society which
are mainly as under:
- No tuition fee is charged from SC/ST students studying in the
Company run schools, irrespective of whether they are SAIL employees''
wards or non-employees'' wards.
- Free medical health centres for poor have been set up at Bhilai,
Durgapur, Rourkela, Bokaro, Burnpur (Gutgutpara) providing free medical
consultation, medicines, etc. to the peripheral population mainly
comprising of SC/ST and weaker sections of society.
- SAIL Plants have adopted 15 children from nearly extinct Birhor
Tribe. They are being provided free education, boarding, lodging and
medical facilities for their overall growth.
- Villagers are given free outdoor and indoor treatment in the SAIL
hospitals located at Kiriburu, Gua & Chiria Mines after recommendations
by Manki / Munda (Local Tribal Village Heads) of the peripheral
Initiatives towards propagating awareness about Reservation Policy
- Internal workshops for Liaison Officers for SC/ST and other dealing
officers of SAIL Plants/Units are conducted at regular intervals
through an external expert to keep them updated on the reservation
policy for SC/ST and other related matters.
- A meeting with SAIL SC/ST Employees'' Federation under the
Chairmanship of Director (Personnel) was organized on 18th June, 2013
at Rourkela. Federation members were apprised about the position and
the challenges faced by the Company. Meeting was followed by a two-day
workshop on reservation matters for the members of the Federation.
- A Workshop on reservation for SC/ST/OBC/PWD was organized on 20th and
21st of June, 2013 at Rourkela. The workshop was attended by 40
executives from different Plants and Units of SAIL and it has assisted
in disseminating the nuances of implementation of guidelines on
- Dr. Rameshwar Oraon, Hon''ble Chairperson, National Commission for
Scheduled Tribes visited RSP during 9th -11th September, 2013 and
reviewed implementation of Reservation Policy in respect of STs. He
appreciated the efforts of SAIL/RSP towards the overall development of
peripheral population which predominantly comprises of SC/ST.
IMPLEMENTATION OF RTI ACT, 2005
Your Company has been a front runner in implementation of Right to
Information Act, 2005 in true spirit. The Company has designated Public
Information Officers(PIO)/Asstt. Public Information Officers (APIO),
Appellate Authorities and Transparency Officer under Section 5 &
Section 19(1) of RTI Act in each Plant and Unit for speedy redressal of
the queries received under the Act.
The provisions under the Act are being complied with by all Plants and
Units of SAIL. All statutory reports including Annual Report are sent
to Ministry of Steel and are also posted on SAIL website. Under Sec.
5(5), all the officers/ line managers responsible for providing
information to the PIO, called Deemed PIO, have been made equally
responsible as PIO towards timely providing of information to the
All Plants/Units of SAIL have listed 17 manuals and details of
designated officials in line with the provisions of the RTI Act has
been uploaded on SAIL website. Your Company has also institutionalised
an exclusive RTI Portal for better awareness and knowledge sharing. In
all, a total number of 4940 applications and 942 appeals were received
under RTI Act, during the Financial Year 2013-14 and all of them have
been disposed off within the timelines. Efforts towards spreading
awareness about RTI amongst general public as also for PIOs/Deemed PIOs
continued throughout the year.
AWARDS &ACCOLADES WON DURING THE YEAR
- Your Company has been conferred with Excellent MoU Rating for the
year 2012-13 for the 11th consecutive year.
- Chairman, SAIL has been adjudged ''CEO of the year'' by Platts at the
2014 Platts Global Metal Award.
- SAIL employees won 18 out of 28 Viswakarma Awards declared in 2013,
which is the highest for any organization amongst both private and
public sector. In terms of number of employees, 76% awardees in the
country were from SAIL.
- 6 out of 16 Shram Awards declared in the country in 2013 for Public
Sector were won by SAIL employees. This was also the highest number for
any organization amongst both private and public sector. In terms of
number of employees, 50% awardees in the country were from SAIL.
- In the international Quality Meet at Taipei, Taiwan during October,
2013, 5 Quality Circle teams consisting of 29 SAIL employees won Gold
- BSP/SAIL was awarded the prestigious PM''s trophy for the Best
integrated Steel Plant (2011-12) for the 11th time (out of 20 times
- SAIL bagged Indira Gandhi Rajbhasha Shield for best implementation of
official language in ''A'' (Hindi-speaking) region by Ministry of Home
Affairs, Government of India. This award was conferred by Hon''ble
President of India on Hindi Diwas i.e. 14th Sept''13.
- SAIL bagged the Gold Trophy for SCOPE Meritorious Award for
Environmental Excellence & Sustainable Development for the year
- SAIL was conferred with ''Employer Federation of India National Award
2013'' for Excellence in Industrial Relations at Mumbai on 25th October,
- SAIL has been awarded with ''Commendation Certificate for Strong
Commitment to HR excellence'' by CII in the 4th CII National HR
Excellence Award 2013 held on 24th September, 2013 at New Delhi.
- Top prize in the ''National Energy Conservation Awards 2013'' was
awarded by Hon''ble President of India Shri Pranab Mukherjee on 16th
December, 2013 in recognition of ''Systematic and serious efforts made
by BSP for efficient utilization and conservation of energy during the
last two years''.
- Town Official Language Implementation Committee (NARAKAS), PSU-Delhi,
under the Chairmanship of SAIL has been awarded the Ist prize for the
best performance in implementation of Rajbhasha in northern region. The
award was presented by Hon''ble Governor of Punjab Mr. Shivraj Patil on
31st March, 2014 at Chandigarh.
- Ispat Rajbhasha Shield (Ist prize) awarded by Hon''ble Minister of
Steel on 24th February, 2014 at Lucknow for best implementation of
Official Language in SAIL.
- In recognition of excellent implementation of Official Language in
SAIL, NARAKAS Rajbhasha Shield (IInd prize) was awarded by Secretary,
Rajbhasha, Govt of India on 21st February, 2014 at New Delhi.
- Ispat Bhasha Bharati, the Hindi House Journal of SAIL has been
adjudged as the best magazine among all PSUs for the year 2012-13 by
Town Official Language Implementation Committee, Delhi on July 29,
- India Pride Award 2013-14 for Excellence in CSR under Central Public
Sector Undertakings was awarded by Union Minister of Human Resource
Development on 19th December, 2013 at New Delhi.
- ''Company with Best CSR & Sustainability Practices Award - 2013''
conferred upon SAIL by Asian Centre for Corporate Governance &
- SAIL won the ''ICC PSE Excellence Awards 2013'' under Corporate Social
Responsibility & Sustainability in Maharatna & Navratna Award Category.
The award was conferred upon SAIL by Advisor to the Prime Minister and
Secretary, DPE on 16th December, 2013 at New Delhi.
- ''SKOCH Corporate Leadership trophy'' was awarded to Chairman, SAIL by
Union Finance Minister in the 34th SKOCH Summit held on 12th November,
2013 at New Delhi.
- SAIL won ''SKOCH Order-of-merit Award'' in 3 award categories i.e. HRD,
Environment Management and Sustainability on 11th November, 2013 at New
- Jury award for ''Lasting Impact on Indian Economy'' at Governance (Now
PSU Awards-2013) conferred upon SAIL
Chairman by Union Minister of Heavy Industries, Sh. Praful Patel on
July24, 2013 at New Delhi.
- SAIL bagged ''e-INDIA PSE Awards-2013'' in the field of Education for
the project Special Schools for the Underprivileged on 23rd July,
- SAIL has been awarded Responsible Business Awards-2013 in the
category ''CSR Leadership Award'' by World CSR Day in June, 2013.
- Chairman, SAIL has been conferred with ''Star PSU CMD of the year
Award'' for outstanding performance under the Maharatna category in
BT-Star PSU Excellence Awards-2013.
- SAIL has won ''Randstad Award 2013 at Bangalore on 18th April, 2013.
- SAIL bagged two prizes in Regional Rajbhasha Conference held by MoH
in Chandigarh on 5th June, 2013; one for best implementation of
Rajbhasha at regional level and another for conducting the activities
of the NARAKAS in excellent manner.
Bhilai Steel Plant
- INSAAN Award First prize for Excellence in Suggestion Scheme
(Theme: Institutionalizing innovation) for the year 2013.
- BSP, SAIL won ''Commendation Certificate'' for significant role played
in promoting Business Excellence in India for the year 2013 in the 21st
CII National Quality Summit at Bangalore on 8th November, 2013.
- Nandini Mines of BSP won 5 prizes for Mineral conservation and
- Greentech Environment Award (Gold) for the year 2012-13 by Greentech
- Bhilai/Durg TOLIC won first prize in the central region for best
implementation of Rajbhasha during 2012-13 by Rajbhasha Deptt. Central
- Golden Peacock Sustainability Award for sustainability initiatives
during Assessment Year 2012-13 by Institute of Directors New Delhi.
- ''IIM National Sustainability Award'' for 2012-13 by Indian Institute
of Metals, Kolkata.
Bokaro Steel Plant
- BSL was conferred with Commendation for Strong Commitment to Excel by
- CII (ER) Productivity Award 2013-14 in Group ''C'' by CII (ER).
- Second prize for implementation of Rajbhasha Hindi in ''D'' Category
States in Eastern Region by Deptt. of Official Languages, Govt. of
India in March 2014.
- Greentech Environment Award (Gold) and Greentech CSR Award (Silver)
for the year 2012-13 by Greentech Foundation.
Durgapur Steel Plant
- DSP was conferred with Commendation for Strong Commitment to Excel by
CII Exim Bank.
- Certificate of Merit awarded to DSP by CII Eastern Region for Energy
- Greentech Environment Award (Gold) and Greentech CSR Award (Silver)
for the year 2012-13 by Greentech Foundation.
- Greentech Safety Award 2013 (Silver) for year 2012-13 by Greentech
Foundation, New Delhi.
- Srishti Good Green Governance Award 2012 for Environment (Runner up)
by Srishti Publications, New Delhi for the year 2012-13.
- ''Commendation Certificate'' under the ''Large Scale Manufacturing
Metallurgical'' category of Rajiv Gandhi National Quality Awards, 2011
on 26th April at New Delhi.
- Greentech HR Award 2013 (Silver) for training excellence at 3rd
Annual Greentech HR Awards ceremony held at Goa.
Rourkela Steel Plant
- Award in three categories viz. Best CSR Practices, Women''s
Empowerment and Support & Improvement in Quality of
Education was awarded to RSP at the World CSR Congress & World CSR Day
held at Mumbai in Feb.''14 during Global CSR Excellence and Leadership
Award Presentation Ceremony.
- Certificate of Commendation was awarded to RSP in the ''CII ITC
Sustainability Award 2013'' for significant achievement in the journey
towards Sustainable Development.
- Greentech Environment Award (Gold) for the year 2012-13 by Greentech
Foundation at Chandigarh on 29th-30th January, 2014.
- Golden Peacock Environment Management Award 2012.
- CII-EXIM Bank Award 2012-13 for strong commitment towards excellence
in November, 2013.
- CSR Leadership Award in the Think CSR Forum jointly organized by
Telfa''s, the Times of India and Think Foundation in August, 2013.
- Champion''s Award for Employee Engagement in June, 2013 by INSAAN.
- Srishsti Good Green Governance Award, 2011 received 4th times in a
row in June''13.
- Ispat Suraksha Puraskar-2010 for no fatal accident in two areas,
namely, Coal, Coke & Chemicals Zone and the Blast Furnace, Slag
Granulation Plant, Sinter Plants & Raw Materials Department Zone by
Joint Committee on Safety, Health and Environment of the Steel Industry
in June, 2013
Raw Materials Division
- Greentech CSR Award (Gold) was awarded to RMD for the year 2012-13 by
Greentech Foundation at Chandigarh on 29- 30th January, 2014.
- Quality circle team of Bolani Ores Mines bagged the Quality Circle
Award at Taipei, Taiwan in October, 2013 for its innovative project on
''Eliminating overloading problem of conveyor LC-2 at Bolani Ore Mines
- Barsua Iron Mines was awarded with 2nd Prize in Use of Mechanized
Beneficiation Equipments and 3rd Prize in SAIL''s in house magazine
Ispat Bhasha Bharti awarded Rajbhasha Shield in a function of TOLIC in
New Delhi, where Chairman SAIL Mr CS Verma and Ms Nita Chowdhury,
Secretary (Rajbhasha), Govt of India, honouring senior Hindi writer and
critic Professor Kedarnath Singh with NARAKAS Sahitya Samman
Publicity & Propaganda in the Mines Environment & Mineral Conservation
Alloy Steels Plant
- Greentech Environment Award (Silver) was won by ASP for the year
2012-13 by Greentech Foundation at Chandigarh on
29th-30th January, 2014.
Salem Steel Plant
- 26 employees of Salem Steel Plant have won State Shram Award
announced by Directorate Safety and Health, Govt. of Tamil Nadu
recognizing outstanding suggestions implemented in the work area. SSP
also bagged 3 safety awards.
- SSP won National Sustainability Award (Second Prize) for the year
2012-13 from Indian Institute of Metals, Kolkata amongst the Secondary
Steel Plants/Alloy Steel Plants category consecutively for the 10th
time and 17th time since inception.
SAIL Refractory Unit
- 2nd Prize in Official Language Implementation in Eastern Region.
CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT
Steel Authority of India Limited - the Maharatna Steel Company, has
adopted a balanced approach towards inclusive growth, consistent with
socio-environment. Your Company, during 2013-14, continued to focus on
helping the downtrodden, the underprivileged with its development
oriented CSR projects in the area of Medical and Healthcare, Education,
livelihood generation etc.
Specialized and basic healthcare facilities either completely free or
at very nominal charges are being provided to needy and underprivileged
living in the vicinity of Pants/Units through 57 Primary Health
Centres, 21 Hospitals, 7 Reproductive & Child Health Centres and 7
Super-Specialty Hospitals created by SAIL. More than 38.61 million
people have benefited so far by availing the healthcare facilities
being provided by SAIL.
Seven health centres (Kalyan Chikitsalaya) have been established
exclusively for BPL families at Plants location which provide free OPD
facilities & medicines to poor and needy families. Over 90,000 people
were treated at these Kalyan Chikitsalayas in 2013-14.
SAIL has continuously been providing basic medical services to the
rural populace residing in its peripheral villages. Around 3000
medical camps were organized during 2013-14 in the vicinity of its
Plants/Units to provide medical facilities to such people in their
neighbourhood itself. More than 2 lakh people received the medical
facilities in these camps in 2013-14.
SAIL has created infrastructure for enhancing availability of safe
drinking water for people living in far-flung areas, by installing over
7625 water sources. By virtue of these facilities created by SAIL,
42.70 lakh people have gained access to drinking water through
improvement in availability of potable water resources at rural and
water deficit locations.
In order to promote sanitation and hygiene in peripheral villages, RSP
has completed the project ''Comprehensive Water & Sanitation Facilities''
in five peripheral villages Chutiatola, Dumerjore, Ushra Colony,
Baniguni & Jagdishpur benefiting 621 households.
Your Company firmly believes that only an enlightened and well informed
citizen can play a constructive role in the progress of society.
Company owns and maintains over 129 schools in its Steel townships for
providing modern education to more than 59,000 children, besides
actively providing assistance to over 629 schools with over 92,000
students. Seven Special Schools (Kalyan Vidyalaya), exclusively for BPL
families established at Steel Plants locations, are providing free
education, mid-day meals, uniform including shoes, text books,
stationery items, school bags, water bottles and transportation to
around 1,600 students. Scholarships to deserving undergraduate and
postgraduate engineering students, adoption of tribal children from
Maoist insurgency affected areas, nearly extinct Birhore tribes,
sponsoring youth for Industrial Training and Nursing course, etc. are
some of the major steps taken for uplifting poor, OBC, SC, ST, etc.
Saranda Suvan Chhatravas - a fully residential complex at Kiriburu
Mines has been set up for providing education and residential
facilities to students belonging to areas affected by Maoist
SAIL in association with Akshya Patra Foundation is providing Mid-Day
Meal to students of Govt. schools in and around Bhilai and Rourkela.
Under this scheme, healthy & nutritious meal is being provided to more
than 73000 students of around 550 Govt. schools every day.
SAIL has carried out construction of new roads/pathways and also
undertaken repairs of damaged road/pathways in rural areas thereby
providing connectivity for facilitating reach of education and
healthcare amenities to over 77.04 Lakh people across 435 villages.
In order to bridge the disparity between rural and urban areas and
bring about holistic development of both physical and social
infrastructure, 79 villages have been developed as Model Steel
Villages across the country (in eight states).
To promote renewable sources of energy, Solar street lights were
installed and Solar Lanterns and smokeless chullahs, have been
distributed among the poor and needy in different parts of Country.
People of remote forest areas are deprived of basic infrastructural
i.e. medical care, education and other essential requirements of
livelihoods. The dense reserve forest of Saranda wherein SAIL''s mines
are situated is one of such deprived region where people face real
hardships of life. Being a responsible corporate entity and to bring
the marginalized masses of this remote forest area to the mainstream of
development, SAIL in association with Ministry of Rural Development,
Govt. of India has undertaken a developmental plan for the benefit of
habitants of Saranda forest region.
Under the Saranda Development Plan, SAIL has distributed bicycles,
transistors, solar lanterns (seven thousand each) to the people of
region and established an Integrated Development Centre (IDC) at Digha
village in Saranda forest, West Singhbum District, Jharkhand consisting
of a Hospital, Anganwadi Centre, Bank, Forest & Agriculture office,
Ration shop, Community Hall, Accommodation Complex for civil official
and a Community kitchen.
SAIL, as a responsible corporate citizen, supported the rehabilitation
initiatives for the people affected by Flash Floods in Uttarakhand and
Phylin cyclone in Odisha by contributing Rs.1 Crore and Rs.20 Crore,
Vocational training has been provided in areas such as Improved
agriculture, Mushroom cultivation, Goatery, Poultry, Fishery, Piggery,
Achar/Pappad/Agarbatti making, Welder, Fitter and Electrician Training,
Sewing and embroidery, Smoke less chullah making etc. as a means to
livelihood in a dignified manner.
Vocational Training centre for rural and unemployed youths ''Bhilai
Ispat Kaushal Kutir'' and ''Swayamsiddha'' at Bhilai, Skill Development
and Self Employment Training Institute (SDSETI) at Durgapur, Garment
Technician Training at Salem, JHARCRAFT centre at Bokaro and Self
employment centre KIRAN at Kiriburu Ore Mines are benefitting common
masses by way of financial inclusion/SHG/training for income generation
and then empowering them to be part of main stream.
Besides running Vocational Training Institutes (VTI), SAIL is
supporting vocational training of the local youth at other ITIs/ITCs/
VTIs. RSP, ISP & RMD supported ITI/ITC training of more than 700 youths
at ITC, Bargaon, (under the rehabilitation/prevention program for the
left wing extremists ) & ITCs at Rourkela.
For promoting the local art and culture, Chhattisgarh Lok Kala Mahotsav
and Gramin Lokotsav are being organised every year. To promote local
culture and games, Gramin Lokotsavas and Gramin Athletics Competition
were organised by SAIL at different locations throughout the year.
SAIL''s efforts as a responsible corporate citizen in Nation building
have been recognized at various forums in the form of numerous awards
and accolades received by the Company which are tabulated along with
other awards in Awards & Accolades Section reported earlier.
SAIL''s Citizen Charter has outlined commitment of SAIL towards its
stakeholders, thereby empowering them to demand better products and
services. The Citizen''s Charter of SAIL may be summarized in four
objectives, as given below:
- Ensuring citizen-centric focus across all its processes by adopting
Total Quality Management principles for improvement of products and
- Ensuring effective citizen communication channels.
- Demonstrating transparency and openness of its business operations by
hosting the Citizen''s Charter on the Corporate website.
- Working towards delight of citizens, by fail-safe processes and in
case of exigencies leveraging its service recovery processes, like
Grievance Redressal, Handling Complaints, etc. The Management of your
Company is totally committed to excellence in public service delivery
through good governance, by a laid down process of identifying
citizens, our commitment to them in meeting their expectations and our
communication to them of our key policies, in order to make the service
delivery process more effective.
STRATEGIC INITIATIVES OF THE COMPANY
During the Financial Year 2013-14, your Company continued to give
impetus towards taking new business initiatives, including mergers and
acquisitions, establishing new strategic alliances with renowned
companies, ensuring raw material security through acquisition of
potential opportunity, as well as diversifying in allied areas for
meeting its long-term strategic objectives. Your Company has
established communication with renowned international technology
providers for forging strategic alliances, in alternative iron and
Steel technologies, as well as production of sophisticated spares and
assemblies etc. The Company is continuously adopting the path of
entering into Joint Ventures with public/ private entities, to attain
its strategic goals of maximizing gains, with optimal utilization of
The strategic initiatives taken by your Company include: Merger and
Acquisitions (M & As):
Your Company has taken up with Ministry of Commerce/ Government of
India for possibility of acquiring majority stake in Neelachal Ispat
Nigam Limited (NINL) in Jajpur, Odisha. SAIL has reiterated its plan to
develop NINL into a 5 million tonne per annum (mtpa) Steel Plant, in
phases, from the current capacity of 0.9 mtpa.
Joint Ventures / Memorandum of Understanding (MOU) :
1. Development of Hajigak Iron Ore Deposits in Afghanistan:
The SAIL-led consortium AFISCO (Afghan Iron and Steel
Consortium) comprising of SAIL, NMDC, RINL, JSW Limited, JSPL, JSW
Ispat Limited and Monnet Ispat and Energy Limited was selected as the
''Preferred Bidder'' for blocks B, C and D of the Hajigak Iron Ore mines
with an estimated reserve of 1.28 billion tonnes of high-grade
magnetite iron ore (with 62-64% Fe content) and invited for negotiation
of Hajigak Mining Contract. The consortium is carrying out contract
negotiations with the Ministry of Mines and Petroleum of the Islamic
Republic of Afghanistan.
2. Alternate technologies in Iron and Steel Making : Your Company is
jointly exploring with Kobe Steel, Japan for installation of an ITmK3
technology based 0.5 MTPA Iron Nugget Plant at ASP, Durgapur. A Joint
Venture Company SAIL-Kobe Iron India Private Limited has already been
incorporated. The Detailed Project Report is under preparation.
3. Revival of operation of SAIL SCL Kerala Ltd. (SSKL), Kozhikode :
The management of erstwhile Steel Complex Limited, a BIFR registered
Company was taken over by SAIL, after its release from BIFR, in 2010,
and converted into a Joint Venture Company, namely SAIL-SCL Kerala
Limited with SAIL and Government of Kerala having equal shareholding.
The Joint Venture Company has initiated the process for installing
65000 tpa TMT rolling mill in the premises.
4. In pursuance to signing of the Joint Venture Agreement with Burn
Standard Company Limited (BSCL), a Public Sector Unit under Ministry of
Railways, for setting up a Wagon Components Manufacturing Facility at
the premises of BSCL at Jellingham, Purba Medinapore District, in West
Bengal, with capacity to produce 10,000 bogies and couplers per annum,
a new Joint Venture Company SAIL Bengal Alloy Castings Private
Limited was incorporated on 12th February, 2013. Work for preparation
of Detailed Project Report (DPR) for the Project has been initiated.
5. SAIL had formed a Joint Venture Company (JVC) with RITES viz. SAIL
RITES Bengal Wagon Industry Pvt. Ltd. (SRBWIPL), to manufacture 1200
wagons and undertake rehabilitation of 300 number of wagons per year at
Kulti, West Bengal. Project related activities are under progress,
including installation and erection of equipment. The JVC is likely to
start commercial production by this year end.
6. Your Company has signed an MOU with Industrial Development
Corporation of Odisha Ltd. (IDCOL) for exploring the possibility of
acquisition of/Joint Venture with its wholly owned subsidiaries IFCAL
(IDCOL Ferro Chrome Alloys Ltd.) and IKIWL (IDCOL Kalinga Iron Works
Ltd.). Based on detailed due-diligence and approval by the SAIL Board,
financial bid for acquisition of 100% equity stake in IKIWL and 51%
equity stake in IFCAL has been submitted on 30.08.2013. Negotiations
are ongoing with Inter Departmental Core Group (IDCG) of Govt. of
BUSINESS EXCELLENCE INITIATIVES
Enterprise Score Card (ESC)
Third Enterprise Scorecard (ESC) of SAIL was prepared for the Financial
Year 2013-14 comprising of 75 Strategic Objectives; 17 in Financial
perspectives, 9 in Customer perspectives, 29 in Internal Business
Process perspectives and 20 in Organisational Capability Building
perspectives. Enterprise Scorecard not only brought integration with
Memorandum of Understanding (MOU) with Government of India and Annual
Business Plan (ABP) of the Company; but also facilitated deployment of
these across various leadership through Strategic Objectives and Key
Initiatives. Enterprise Scorecard was deployed downwards through Unit
Scorecards, Functional Scorecards and Departmental Scorecards and
addressed the long-term and short-term issues. Enterprise Scorecard for
2014-15 has also been completed.
Your Company has adopted European Foundation of Quality Management
(EFQM) Model which is implemented in India through CII-EXIM Bank Award
for Business Excellence. Four SAIL Plants, i.e., BSP, DSP, BSL and RSP
participated in the process for CII-EXIM Bank Award for Business
Excellence 2013. These Plants got following Recognition awards:
BSP Commendation award for Strong Achievement.
DSP Commendation award for Strong Commitment to Excel.
RSP Commendation award for strong Commitment to Excel.
BSL Commendation award for Strong Commitment to Excel.
Your Company was also conferred a Special Award by CII for Significant
role played in promoting Business Excellence in India during the
National Quality Summit organized by CII.
Total Quality Management (TQM)
Most of our Plants and Units are certified to ISO 9000, ISO 14000,
OHSAS 18000 and SA 8000 Management Standards. During the Financial Year
2013-14, three Certification Agencies have been empanelled through open
tender for three years for audit across SAIL Plants/Units for ISO 9000,
ISO 14000, OHSAS 18000 and SA 8000. This would also facilitate gradual
implementation of Integrated Management System in Plants.
IT RELATED INITIATIVES
Your Company has embraced Information Technology (IT) enabled services,
applications and tools in all its Plants and Units for improvement in
productivity, yield, quality, reduction in operational costs and
improvement in internal and external customer satisfaction.
As a step towards this, Enterprise Resource Planning (ERP) has been
implemented stage wise in 4 Integrated Steel Plants i.e. Bhilai Steel
Plant, Durgapur Steel Plant, Bokaro Steel Plant, Rourkela Steel Plant
and the process of ERP implementation has been initiated at
5thIntegrated Steel Plant i.e. IISCO Steel Plant. Central Marketing
Organisation (CMO) ERP has already covered 100% primary domestic sales
The Manufacturing Execution System (MES) technology was implemented at
Bhilai Steel Plant and its deployment over marketing network has
facilitated customers in placement of optimal orders in terms of
quality, size and quantity.
Electronic facility of receiving online payment has been launched with
collection of medical insurance premium from ex-employees of SAIL and
is being extended to other receivables.
Provision of centralized visibility of bill payment status of all
external vendors/suppliers is made available through SAIL Corporate
To ensure data and information security, steps have been taken at all
SAIL Plants/Units and Durgapur Steel Plant has obtained ISO 27001:2005
Information Security Management System (ISMS) certificate.
Your Company assumes its responsibility to honour and adhere to the
applicable laws of the land pertaining to environment. In order to
attain the compliance with environmental laws, your Company has
established separate department on environment at all the Plant/Units.
Besides, it has an Environment Management Division at the corporate
The Company is also complying with all the forestry laws as per the
laid down conditions. In addition to this, conditions imposed by the
State Government(s) are also complied with.
The ongoing Modernization and Expansion programme of the Company, apart
from increasing the production capacity, also envisages installation of
more efficient & environment friendly technologies and incorporation of
latest pollution control technologies and equipment. The Company is
spending about Rs.5000 crore on pollution control scheme out of the total
outlay of about Rs.72000 crore for the on-going Modernization and
Expansion programme. Various environmental protection and conservation
measures being undertaken by the Company are mentioned in MD&A Report.
Corporate Communications initiatives for the year 2013-14 have been
strategically aligned with objectives of your Company for the year. A
number of new activities and projects have been taken up this year in
order to enhance and strengthen the image of Brand SAIL amongst the
Your Company''s communication with the various target audience was
strengthened through various channels by regularly informing our
stakeholders about various initiatives through press releases, press
meets, one-to-one interactions with media within India and
internationally. Key highlights of SAIL''s achievements throughout the
year, such as your Company''s Modernization and Expansion plan, higher
volumes of production and sales, development of value added products,
engaging our customers, etc. were some of the news items that generated
positive coverage for your Company.
Your Company made focused efforts to engage and interact with the
employees across our Plant/Unit locations as matter of strategy, to
build a sustainable organization. The objectives and achievements of
the organization were communicated to the employees through
multilayered framework like messages of Management, in-house television
channels, video-conferencing, face-to-face communication and
newsletters etc. In order to instill a greater feeling of ownership,
drive and sense of pride amongst employees of your Company, a new
initiative My SAIL My Pride has been launched.
The advertising strategy of your Company focused its activities to
target present and potential customers panIndia, besides pan- India
audience involving multiple stakeholders. New corporate and product
advertisements were designed and developed to enhance the image of your
As part of our overall strategy of strengthening the image of your
Company, number of sponsorship initiatives were identified and taken up
this year by your Company. Your Company, along with SBI, organized the
SAIL SBI Open 2014 which was presented by Incredible India, Ministry
of Tourism. The SAIL Open Golf Tournament has helped in strengthening
the SAIL Brand, besides being the second longest running national Golf
championship after Indian Open. Football being a very popular in the
neighbourhood of our Plants, we have collaborated with Baichung Bhutia
Football School for providing training to the cadets as well as the
coaches of the Football Academies of your Company.
SAIL Vigilance lays emphasis on preventive and proactive vigilance
activities to facilitate an environment enabling people to work with
integrity, efficiency and in a transparent manner, upholding highest
ethical standards for the organization.
Following activities were undertaken during the Financial Year 2013-14:
- To increase vigilance awareness amongst employees, vigilance
awareness sessions and workshops were regularly held at the various
Plants and Units. A total of 147 workshops involving 3179 participants
were organized for enhancing Vigilance Awareness on Whistle Blower
Policy, Purchase/Contract Procedures, RTI Act, Conduct and
Discipline Rules, System and Procedures followed in SAIL, etc.
- Periodic surprise checks including joint checks were conducted
regularly in vulnerable areas of the Company. A total of 3296 periodic
checks including file scrutiny and Joint Checks were conducted at
different Plants/Units. Saving of approx. Rs. 23.22 crore accrued from
the preventive vigilance activities mainly on account of these Surprise
- Vigilance provides vital inputs to the operating authorities for
improving the prevailing systems for bringing about more transparency.
Accordingly, eight major System Improvement Projects (SIPs) were
undertaken at different Plants/Units of SAIL.
- 13 cases were taken up for Intensive Examination at different
Plants/Units. During Intensive Examination, high value
procurement/contracts are scrutinized comprehensively and necessary
recommendations are forwarded to concerned departments for implementing
suggestions for improvement.
- As decided by the Central Vigilance Commission, Vigilance Awareness
Week was observed in all the Plants and Units of Steel Authority of
India Limited (SAIL) during the period 28.10.2013 to 2.11.2013. The
theme of Vigilance Awareness Week this year was Promoting Good
Governance Positive Contribution of Vigilance. Based on the above
theme, a number of seminars/workshops were organized during the week,
to emphasize the need of greater transparency in commercial dealings
with the stakeholders. Various events like debate competition, essay
writing, quiz competition, talk by eminent personalities were also
organized for the employees as well as school children. Further,
interactive awareness sessions with major customers/stakeholders were
- The following four (4) thrust areas were identified for SAIL
i) Increase e-auction (Reverse Auction and Forward Auction) in all
spheres of the activity and to achieve 100% e-payment in time bound
ii) Scrutiny of files pertaining to 21 high value projects being
undertaken at various Plants/Units, in line with the guidelines of
Chief Technical Examiner of CVC.
iii) Scrutiny of the contracts awarded on single tender enquiry
iv) Increased surveillance in the areas of receipt, sampling and
testing of high value raw materials and installing auto analyzers and
auto samplers for raw material testing and sampling.
- A study on Conversion Agents / Wet Leasing Agents appointed by SAIL
for conversion of semis into finished products was conducted by SAIL
Vigilance Department, which brought out certain deficiencies in the
system. A number of systemic improvement measures were recommended to
prevent misuse of SAIL Logo/Brand as well as to streamline the
conversion process through regular monitoring/periodic checks by the
- The Purchase/Contract Procedure (PCP) 2009 was issued by the
Vigilance Department based on the feedback obtained from different
stake holders. On the initiative of SAIL Vigilance, PCP is being
revised to include the guidelines issued from time to time by various
authorities such as CVC after discussions with stakeholders and the
revised PCP is expected to be issued shortly.
- ''Inspiration-Prerna'', an in-house publication of SAIL Vigilance is
being published regularly. The above publication contains case studies,
articles from eminent personalities, quiz on policy matters, etc. to
enhance awareness of the readers.
PUBLIC PROCUREMENT POLICY FOR MICRO AND SMALL ENTERPRISES
As required by the Public Procurement Policy of the Government of
India, the information on procurement from Micro and Small Enterprises
during Financial Years 2013-14 and 2012-13 is given below:
Particulars 2013-14 2012-13
Total Amount Procurement 3862.69 4142.00
Total Procurement from MSE 789.64 942.00
% of Procurement from MSE 20.44 22.74
SAIL has one of the largest pool of qualified and experienced
engineers, technologists, Finance professionals and professionally
qualified HR and training experts. Based on its large and varied
expertise and experience acquired over the last five decades, SAIL,
through SAILCON, provides design, engineering, training, technical and
management consultancy services in Iron and Steel and related areas and
offers a wide range of services to clients globally. Technical and
Management Training Services are its forte and these services have been
availed of by several organizations in private and public sector within
India and abroad. To scale up the activities and to further reinforce
the brand image of SAIL as a consultant, SAILCON is continuously
exploring the market, both within and outside the Country for possible
business opportunities as well as joint ventures with Global
consultants for commercialization of SAIL''s expertise.
SAILCON has executed assignments within India and abroad covering
countries like Egypt, Saudi Arabia, Iran, Qatar, Thailand, Nepal,
During the Financial Year 2013-14, SAILCON laid enhanced focus on
taking up training assignments along with technical consultancy in
setting up of Steel Plants for some leading organizations. Consultancy
is also being extended for setting up of Power Plants, based on waste
heat recovery from the flue gases released out of Blast Furnace and
non-recovery type of Coke Oven batteries, as an environment friendly
measure and as a step to combat Global warming.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report covering the performance
and outlook of the Company is enclosed.
The Statutory Auditors'' Report on the Accounts of the Company for the
Financial Year ended 31st March, 2014 along with Management''s replies
thereon is placed at Annexure-I. The comments of Comptroller and
Auditor General of India (C&AG) on the accounts of the Company for the
Financial Year ended 31st March, 2014 under Section 619(4) of the
Companies Act, 1956 and the Management''s replies thereto are placed at
Pursuant to the direction of the Central Government for audit of cost
accounts, your Company has appointed M/s Sanjay Gupta & Associates, New
Delhi for Rourkela Steel Plant (RSP) & Bokaro Steel Plant (BSL), M/s
K.C. Kohli & Co, Delhi for Bhilai Steel Plant (BSP), Durgapur Steel
Plant (DSP) & IISCO Steel Plant (ISP) and M/s R J Goel & Co., New Delhi
for Alloy Steels Plant (ASP), Salem Steel Plant (SSP) & Visvesvaraya
Iron & Steel Plant (VISP) as Cost Auditor(s) for the Financial Year
REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ETC.
In accordance with the provisions of Section 217 (1)(e) of the
Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 regarding Conservation
of Energy, Technology Absorption and Foreign Exchange Earnings and
Outgo is given at Annexure-III to this Report.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956, it is hereby
(i) that in the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to material departures;
(ii) that the Directors have selected such Accounting Policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the Financial Year and of the
profit or loss of the Company for that period;
(iii) that the Directors have taken proper and sufficient care for the
maintenance of adequate Accounting Records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
(iv) that the Directors have prepared the Annual Accounts on a going
In terms of Listing Agreement with the Stock Exchanges, a Compliance
Report on Corporate Governance is given at Annexure-IV. A certificate
from Auditors of the Company regarding compliance of conditions of
Corporate Governance is placed at Annexure-V. In terms of Listing
Agreement, the Board has laid down a Code of Conduct for all Board
Members and Senior Management of the Company. The Code of Conduct has
been posted on the website of the Company. All the Board Members and
Senior Management Personnel have affirmed compliance with the Code.
BUSINESS RESPONSIBILITY REPORT
SEBI vide its Circular CIR/CFD/DIL/8/2012 dated August 13, 2012, has
mandated the top 100 listed entities, based on market capitalization of
BSE and NSE, to include Business Responsibility Report describing the
initiatives taken by the companies from Environmental, Social and
Accordingly, the Business Responsibility Report is attached at Annexure
VI and forms part of the Annual Report.
CONSOLIDATED FINANCIAL STATEMENTS
In terms of Listing Agreement with the Stock Exchange(s), the duly
Audited Consolidated Financial Statements are placed at Annexure-VII.
IISCO-Ujjain Pipe and Foundry Company Limited, a wholly owned
subsidiary of the erstwhile Indian Iron and Steel Company Limited
(IISCO), was ordered to be wound up by BIFR. The Official Liquidator is
continuing its liquidation process. The assets of the Company have been
realized and the settlement of claims is in process.
The Company has three other wholly owned subsidiary companies namely,
SAIL Refractory Company Limited (SRCL), SAIL Jagdishpur Power Plant
Limited and SAIL Sindri Projects Limited. SRCL has taken over the
Salem Refractory Unit of Burn Standard Company Limited on 16th
December, 2011 and is operating the same. SAIL Jagdishpur Power Plant
Limited, incorporated for setting up of Gas based power Plant at
Jagdishpur and SAIL Sindri Projects Limited, incorporated for revival
of Sindri Unit of Fertilizer Corporation of India Limited are yet to
commence operations pending relevant approvals.
A Statement pursuant to Section 212 of the Companies Act, 1956 is
attached to the Accounts. In terms of general exemption granted by
Ministry of Corporate Affairs vide Circular No.5/12/2007-CL-III dated
8.2.2011, the Audited Balance Sheet, Profit and Loss Account,
Report of the Board of Directors and Auditors of our subsidiaries need
not be attached with the Balance Sheet of the Company as the Company
has satisfied the conditions stipulated in the Circular. However, the
requisite information as prescribed in the above Circular of Ministry
of Corporate Affairs in respect of the subsidiary companies has been
disclosed in the Statement.
The Annual Accounts of the subsidiary companies and related detailed
information shall be made available to the Shareholders of the holding
and subsidiary companies, seeking such information at any point of
time. Further, the Annual Accounts of the subsidiary companies are
available for inspection by any Shareholder in the Registered Office of
the Company and of the subsidiary companies concerned during the office
hours between 11 AM to 1 PM. A hard copy of the details of accounts of
subsidiaries shall be furnished to the shareholders on receipt of
Dr. Jagdish Khattar and Prof. Subrata Chaudhuri ceased to be Directors
w.e.f. 20.08.2013 (A.N.)
Shri Binod Kumar has been appointed as Director (Commercial) on
02.12.2013 and joined SAIL Board on 03.12.2013.
Shri P.K. Sengupta and Shri P.C Jha ceased to be Directors w.e.f.
Shri R.S. Sharma, Shri N.C Jha, Shri D.K. Mittal and Mrs. Parminder
Hira Mathur have been appointed as Directors w.e.f. 19.02.2014.
The Board of Directors wish to place on record their appreciation for
the support and cooperation extended by every member of the SAIL
family. The Directors are thankful to the State Governments,
Electricity Boards, Railways, Banks, Suppliers, Customers and
Shareholders for their continued cooperation. The Directors also wish
to acknowledge the continued support and guidance received from the
different wings of the Government of India, particularly from the
Ministry of Steel.
For and on behalf of the Board of Directors
Dated: 14th August, 2014