BSE LiveFeb 18, 16:00
Bid Price (Qty.)
Offer Price (Qty.)
NSE LiveFeb 18, 15:57
Bid Price (Qty.)
Offer Price (Qty.)
Steel Authority of India Limited,
The Board of Directors has the pleasure of presenting the 47th Annual Report of Steel Authority of India Limited (SAIL, the Company) together with the Audited Standalone and Consolidated Financial Statements for the Financial Year ended 31st March, 2019.
A. FINANCIAL REVIEW
Your Company achieved sales turnover of Rs,66,267 crore during the Financial Year 2018-19, which is higher by 16% as compared to corresponding period of last year (CPLY) mainly due to increase in Net Sales Realization (NSR) of Saleable Steel of 5 Integrated Steel Plants by about 16%. During the Financial Year 2018-19, the Profit before Tax and Profit after Tax at Rs,3,338 crore and Rs,2,179 crore respectively reflect substantially better and higher performance over CPLY.
The profit of your Company during the Financial Year 2018-19 has improved on account of higher Saleable Steel production, increase in Net Sales Realization of Saleable Steel of 5 Integrated Steel Plants, sales of secondary products, lower voluntary retirement compensation, lower Coke Rate, etc. However, the same has been partially offset by increased imported coking coal rate, purchased power rate, increase in repairs & maintenance expenditure, stores & spares expenditure, security expenses, royalty rates on Iron Ore, foreign exchange loss, higher imported coal in blend, higher usage of Iron Ore, provision for differential royalty on Bolani and Barsua Iron Ore Mines as well as Entry Tax in UP State consequent to the Order of Hon''ble Allahabad High Court, and incremental interest expenses & depreciation charges due to capitalization of new facilities.
Your Company continued its thrust on judicious fund management with timely repayment of loans including interest, advance planning and action for future fund raising, etc. to meet our growth objectives. The Company had borrowings of Rs,45,170 crore as on 31st March 2019 vis-a-vis Rs,45,409 crore as on 31st March 2018. The Company has fully hedged the foreign currency risk on Buyers'' Credit and External Commercial Borrowings. The debt equity ratio of the Company as on 31st March, 2019 decreased to 1.18:1 from 1.27:1 as on 31st March 2018 primarily due to increase in net worth during the year. The net worth of the Company increased to Rs,38,152 crore as on 31st March 2019 from Rs,35,714 crore as on 31st March 2018.
The Board of Directors has recommended a dividend of Rs,0.50 per Equity Share of face value of Rs,10/- each for the Financial Year 2018-19, subject to approval of shareholders.
M/s. CARE Ratings, M/s India Ratings and M/s Brickwork Ratings, RBI approved Credit Rating Agencies, assigned ''CARE AA- Outlook: Stable'', ''India Ratings AA- Outlook: Stable'' and ''BWR AA Outlook: Negative'' ratings respectively for SAIL''s long-term borrowing programme.
B. OPERATIONS REVIEW Production Review
Financial Year 2018-19 was another remarkable year in the performance of the Company, even with greater challenges like stiff competition from domestic market and certain operational setbacks. However, SAIL Plants, continued with their journey of relentless efforts for improvement in production, product-mix and efficiency parameters.
During the sixtieth year of production, your Company recorded its highest ever annual production of Hot Metal of 17.5 million tonnes (MT), Crude Steel of 16.3 MT and Saleable Steel at 15.1 MT, with a growth of 10%, 8 % and 7%, respectively with respect to 2017-18, (CPLY). Finished steel production at 11.9 MT was achieved with a growth of 4% over CPLY.
SAIL, in its endeavor to become energy and cost efficient, increased production of Crude Steel through Continuous Casting route and achieved highest ever Crude Steel production through Continuous Casting route at 13.8 MT in the Financial Year 2018-19 with a growth of 8% over Previous Year. A large number of innovations are being carried out in the Plants for process improvement and cost competitiveness.
The Research & Development Centre of SAIL, provided innovative technological inputs to different Plants/Units of the Company, with special emphasis on productivity and quality improvement, product development and commercialization, energy conservation and automation.
At Bhilai Steel Plant(BSP), the ''state of the art'' Blast Furnace-8, Mahamaya, achieved a landmark of 1 MT Hot Metal production on 18th October, 2018 in record 8 months and 17 days after blowing in on 2nd February, 2018, fastest in SAIL. BF-8 production has been ramped up to a level of 7000 tons per day. The improvement in production from new Universal Rail Mill (URM), has enabled a growth in UTS-90 rails production at 9.85 lakh ton by 9.1% compared to 9.03 lakh tonne in the previous year, coupled with record loading of long rails at 4.42 lakh tonne in 2018-19 over 3.16 lakh tonne in 2017-18, registering a growth of 40%. In SMS-III, the first heat was tapped from Converter-2 on 27th November, 2018, Caster CV1 for blooms was started on 28th September, 2018 and clearance from Research Designs and Standards Organization for making Rail Bloom Heats was obtained on 18th February, 2019. At SMS-II, Cast blooms production of 13.89 lakh tonne is the best ever yearly performance against the previous best of 12.16 lakh tonne in 2017-18, with a growth of 14.9%. The trial rolling at the new ''state of the art'' Bar and Rod Mill was started on 28th December, 2018.
Durgapur Steel Plant(DSP) achieved the best ever annual Hot Metal, Crude Steel and Saleable Steel production during the Financial Year 2018-19 at 2.52 MT, 2.22 MT and 2.13 MT respectively. Under the development of new wheels, DSP supplied wheels for Kolkata Metro Railways and NTPC. Further, 30 nos. of LHB wheels, which are safe & light, were supplied to Indian Railways. In addition to this, various new initiatives were undertaken to improve productivity and efficiency of the process. Profile measurement device was installed at Medium Structural Mill (MSM) for preventing generation of defectives and reduce downtime. Use of cost effective dolomite based refractory in steel ladles and use of CC Rounds for production of BG Coach/ EMU/ LHB wheels has been introduced.
At Rourkela Steel Plant (RSP), the new ''state of the art'' Plate Mill achieved highest ever annual production of 0.861 MT. Hot Metal, Crude Steel and Saleable Steel production for the Financial Year 2018-19 recorded the highest annual production at 3.837 MT, 3.660 MT and 3.335 MT respectively.
Bokaro Steel Plant(BSL) recorded best annual figures of cast slab production of 3.394 MT, HR Coils at 3.686 MT and CR Saleable at 1.142 MT.
At IISCO Steel Plant (ISP) various new sections were developed like, IPE/NPB 750 Narrow Parallel Flange Beams (5 variants), HE / WPB 240 Wide Parallel Flange Beams (4 variants), IPE 600V Narrow Parallel Flange Beams (Sec. wt. 184 Kg/m), 6.5 mm WRC, 36 mm TMT Bars (IS 1786 Fe 500D). ISP successfully rolled out NPB 750 in its Universal Section Mill and added this section to its product basket during the Financial Year 2018-19, thus becoming the only Plant in the Country to roll this section.
Your Company renewed various initiatives to reduce environmental footprint and enhance operational efficiency and this has led to a significant improvement in environmental parameters as well as techno-economic efficiency. This enabled us to produce greener and more environmental friendly steel than ever before. SAIL recorded the best ever coke rate at 453 kg/thm. This was achieved as a result of higher volume of Hot Metal produced through new ''state of art'' large volume Blast Furnaces (38% of total Hot Metal, up by 29% over CPLY).
For the past sixty years, your Company''s steel has significantly contributed to almost all the key projects of the Country including Railways, Defence, Hydroelectric, Space Programs, Infrastructure projects, and has partnered with the Government in its initiatives like ''Make in India'', ''Digital India'' and ''Skill India'', etc.
Your Company has played a key role in the development of home grown, ''state-of-the-art'' gun-Dhanush, for which it has supplied special quality forging steel from its Durgapur based Alloy Steels Plant. Besides this, your Company has supplied steel to India''s space missions and has been part of Country''s growth story under the ambit of National Steel Policy 2017.
SAIL''s steel has been used in every single infrastructure project of National significance in the last sixty years like- Chenani Nashri tunnel, Statue of Unity, the world''s tallest statue, etc. The quality and variety of steel produced by SAIL is praiseworthy and your Company is prioritizing to increase its volumes and achieve its rated capacities along with adding value added products to cater to the market requirements.
Your Company has always strived to maximize its captive power potential in view of reliability of power supply as well as availability of power at optimum cost. During the Financial Year 2018-19, about 58% of the total requirement of 11120 Million Units(MU) was met from the captive Power Plants. SAIL is the first non-utility power producer in the Country to have gainfully utilized the concept of Open Access Regulations, laid down in the Electricity Act, 2003, by way of starting inter-regional wheeling of surplus captive power. Continuing the legacy, this year too, SAIL Plants procured about 437 MU of energy under provisions of Open Access which amounts to about 3.93% of the total power requirement. This included purchase of about 283 MU from the power exchanges.
With the objective to enhance the share of captive power and supply reliable power at optimum cost to all ongoing expansion projects, commissioning of new captive power plants of 290 MW capacity is in advanced stage by NTPC- SAIL Power Company Limited (NSPCL), a Joint Venture Company of SAIL & NTPC Ltd.
Besides above, optimization of electricity consumption in various steel making processes is also one of the thrust areas of SAIL Plants for lowering the power consumption per ton of saleable steel production.
As a responsible corporate house, your Company has laid adequate emphasis on development and usage of renewable power sources. While Rooftop Solar Power Plant of 2 MWp capacity was commissioned during the Financial Year 2018-19 at various buildings of Bokaro Steel Plant, tenders have also been invited for installation of another 6.2 MWp capacity of Roof Top Solar Plants at different SAIL Plants/ Units.
In addition to this, a new Joint Venture Company GEDCOL SAIL Power Corporation Limited (GSPCL) was incorporated during the Financial Year 2018 19 to develop a small Hydro Electric Plant of 10 MW capacity at Mandira Dam, Rourkela. SAIL owns 26% equity in the Joint Venture Company whereas remaining 74% equity is owned by Green Energy Development Corporation of Odisha Limited (GEDCOL), a Government of Odisha Company.
During Financial Year 2018-19, total requirement of iron ore was met from captive sources. Your Company''s captive mines produced about 28.35 million tonnes (MT) of iron ore. In case of clean coking coal, about 1.5MT was met from indigenous sources (Coal India Limited & captive sources) and for the balance requirement of coking coal (13.21 MT), the Company had to depend on imports due to limitation in availability of required quantity and quality within the Country. In the Financial Year 2018-19, production in captive collieries of the Company was about 0.74 MT, out of which 0.44 MT was raw coking coal and balance 0.30 MT of non-coking coal. In case of fluxes, around 1.32 MT of limestone and 0.52 MT of dolomite were produced, giving a production of 1.84 MT fluxes from captive sources. For thermal coal, your Company depends entirely on purchases from Coal India Limited except small quantity produced from captive mines.
Consequent upon issuance of the order by Hon''ble Supreme Court on 11.05.2018, iron ore production at Barsua mines, which remained suspended since 17.05.2014, got resumed on 20.05.2018.
Grant of Environment Clearance(EC), Forest Clearance(FC)
In order to expedite capacity expansion projects of mines, following Environment and Forest Clearance have been obtained during 2018-19:
- Stage-II FC for diversion of Sabik Kisam forest lands under 6.9 Sq. mile lease of Bolani Mine was granted by MoEFCC on 29.04.2019.
- Terms of Reference (ToR) for conducting EIA study for ML-139 Mining Lease of Barsua Mine was granted on 24.08.2018.
However, Stage-II Forest Clearance for the capacity expansion of Gua and Chiria Mines and opening of South-Central blocks in Kiriburu-Meghahatuburu Mines in Saranda forest in Jharkhand is awaited from MoEFCC. In view of its criticality to the capacity expansion projects, the matter is being actively pursued at the level of MoEFCC, Ministry of Steel and Government of Jharkhand.
MoEFCC has also linked grant of EC for Kalwar-Nagur lease of BSP with payment of Net Present Value(NPV) for entire forest land under lease. SAIL has challenged the notice in this regard in the Hon''ble Chhattisgarh High Court. In pursuance of the Hon''ble Chhattisgarh High Court Order dated 11.09.2018, two meetings were held under the Chairmanship of Secretary, MoEFCC on 27.11.2018 and 22.01.2019. SAIL has submitted comprehensive plan for development of Kalwar-Nagur deposit as directed during the first meeting held on 27.11.2018 and has also submitted its representation regarding issues in disagreement during the second meeting held on 22.01.2019. In the meantime, vide OM dated 01.01.2019, MoEFCC provided the opinion of AGI to SAIL, which is in line with the interpretation of FC Act made by SAIL. The matter was last heard in Hon''ble Chhattisgarh High Court on 07.05.2019 wherein, it was informed by the respondents (MoEFCC and Government of Chhattisgarh) that pleading on their part is complete. In the final hearing held from 17th and 19th June, 2019, Hon''ble Court heard all the parties at length, including pleadings made by the UOI, Chhattisgarh State Govt. and SAIL. The case has been posted for next date of hearing.
Legal recourse in the matter of rejection of Environment Clearance proposals of Pandridalli & Rajhara Pahar iron ore mining lease of BSP and Tulsidamar Dolomite lease of RMD is being taken.
Extension of lease period and reservation of new areas
- On 06.08.2018 Government of Chhattisgarh amended the Chhattisgarh Minor Minerals Rules, 2015 and made a provision for extension of lease period of mining leases of minor minerals through onetime extension of lease period of twenty years after expiry of a period of 50 years from the date of original grant. With this amendment, the lease period of Hirri dolomite and Baraduar dolomite leases will extend up to the period of 2029 and 2040 respectively, which would have otherwise expired in 2020.
- Vide Notification dated 20.02.2019, Ministry of Mines, Government of India reserved the area of 150 Acres at Ramandurga Bellari District, Karnataka for iron ore for undertaking prospecting or mining operations through VISL for a period of 10 year.
- Government of Jharkhand has agreed for extension of lease period of iron ore mining leases including sub-juice leases.
- Pronouncement of Judgment by Hon''ble Delhi High Court on 26.03.2019 has paved the way for grant of iron ore mining lease in NEB area in Bellary District in favour of ViSl.
- Under the provisions of Mineral (Mining by Government Company) Rules, 2015, Government of Jharkhand vide order dated 25.06.2019 has extended the lease period of Duargaiburu Lease of Gua Iron Ore Mine for 20 years w.e.f. 22.02.2009, with conditions.
However, delay in renewal of mining leases of Tasra Coking Coal Block and reservation of area for sand mining leases for stowing are areas of concern. The matter regarding clarification, as sought by Government of Jharkhand for renewal of Tasra lease from Ministry of Coal and reservation of area for sand for stowing are being actively pursued with Ministry of Coal.
Impact of Judgment passed by Hon''ble Supreme Court in Common Cause
Consequent to the judgment dated 2nd August, 2017 of the Hon''ble Supreme Court in the matter of Common Cause, State Governments of Odisha and Jharkhand have issued Demand Notices of Rs,204.58 crore and Rs,1759.02 crore respectively and State Government of Chhattisgarh has issued Show Cause Notices amounting to Rs,8,349.09 crore for payment of compensation under section 21(5) of the MMDR Act and for EC violations related to iron ore, flux & coal mines, till date.
In order to mitigate the impact of order of Hon''ble Supreme Court, Secretary, Ministry of Steel vide letter dated 13.10.2017 had taken up the, matter with Secretary, Ministry of Mines to bring an Ordinance to amend Section (3) of MMDR Act, 1957 by including the definition of lawful authority and mining operation without any lawful authority and consequently, Ministry of Mines vide O.M. dated 15.03.2018 has sent a draft note for the Cabinet on proposal for amending the Mines and Minerals (Development and Regulation) Act, 1957. Ordnance in this regard is awaited.
Return of Parbatpur and Sitanala Coal Blocks
Sitanala Coal Block
Consequent to the SAIL''s letter dated 12.03.2018 to Ministry of Coal(MoC) regarding returning of Sitanala Coal Block, MoC, vide letter dated 04.10.2018 issued a Termination Notice against Allotment Agreement and Allotment Order, in respect of Sitanala Coal Block and advised the bank on 25.10.2018 to invoke the Bank Guarantee(BG) of Rs,10.43 crore. Consequently, the bank invoked the BG on 30.10.2018. On challenging the Termination Notice before Delhi High Court, Hon''ble Court vide its Order has not stayed the invocation of BG but directed that if the petition is decided in favour of SAIL, consequential direction for refund of the amount collected by invoking the Bank Guarantee will be passed. The matter was listed on 10.01.2019 wherein, counsel appearing for Ministry of Coal sought further time to file a counter affidavit. The matter has been listed for further hearing.
Parbatpur Coal Block
SAIL vide letter dated 08.03.2018 had intimated Nominated Authority, Ministry of Coal(MoC), about the decision of its Board to return Parbatpur Coal Block to MoC. However, decision from MoC in this regard is still awaited. Further, Secretary, MoC, during a meeting held on 16.10.2018 advised SAIL to make all efforts for ensuring mining of coal from the Parbatpur block by forming a Joint Venture with ONGC. On examination by both SAIL and ONGC along with Central Mine Planning and Design Institute (CMPDI), Ranchi, it emerged that concurrent mining of Coal & Coal Bed Methane (CBM) from the same area is not feasible technically and from safety view as well. SAIL informed the same to MoC on 14.02.2019 and reiterated it''s earlier request to refund the amounts paid including bank guarantee, submitted at the time of allocation of the coal block and also for allotment of a potential coking coal block in lieu of the returned coal block.
Notwithstanding the fact that SAIL has already returned the block to MoC, Joint Secretary, MoC passed an order on 15.02.2019 regarding determination of compensation for Land and Mine Infrastructure payable to M/s. Electrosteel Castings Ltd. as prior allottee of Parbatpur Central Coal Mine wherein previous valuation of Land and Mine Infrastructure of prior allottee reduced from Rs,62.2816 crore to Rs,60.3055 crore. Further, vide order dated 11.04.2019 it made clear that order of determination dated 15.02.2019 does not require reconsideration and the determination made is final.
Furthermore, Nominated Authority, MoC, vide letter dated 26.03.2019 has requested SAIL to communicate its decision to continue with the surrender of the Parbatpur Central Coal Mine. Covering the aspects of overlap issues with Petroleum Mining Lease of ONGC and non-grant of mining lease, it was informed to MoC on 09.04.2019 to take over the Parbatpur mine from SAIL, to refund the amount paid by SAIL at the time of allocation of the coal block and also allot a potential coking coal block in lieu of the returned Parbatpur coal block. Further action on the matter is awaited from MoC.
Sales & Marketing
During the Financial Year 2018-19, your Company achieved its best ever sales volume of over 14.1 million tons (MT), registering a growth of about 0.4% over CPLY. Continuing to maintain its presence in international markets, SAIL has exported 0.76 MT of steel, a growth of about 9% over the previous financial year.
To tap the vast potential of Rural India, your Company organized 152 ''Gaon Ki Ore'' workshops in 29 States/Union territories for increasing awareness on usage of steel. Small consumers continued to be a focus area and 0.7 MT of steel were sold through the retail marketing channels.
Your Company has enhanced its efforts towards selling value added steel to various segments. Supplies from the Cold Rolling Mill #3 at Bokaro have been steadily increasing to consumers in the highly demanding, high value auto segment, besides new customers in Power sector. Supplies of special grades WRC has commenced from the new mill at IISCO Steel Plant.
With the ramping up of production at the Universal Rail Mill at Bhilai, record 4.42 lakh tonnes of long rail panels (260 meters) were supplied to Indian Railways, registering a growth of around 40% in the 2018-19. This Mill produces the longest single rail in the World (130 meters). During 2018-19, record 9.85 lakh tonnes of Rails in prime quality were produced at Bhilai Steel Plant, a growth of around 9% over 2017-18. A record 9.44 lakh tons were supplied to Railways (including supply to RVNL and IRCON).
As a step towards enhancing brand visibility of Parallel Flange, Structural Sections under the brand name NEX were promoted through product awareness seminars and workshops conducted across the Country. Focused Customer engagement efforts including interactions with Structural Designers and Planners, have helped your Company to establish the product range. This resulted in growth of 27% in sales of structurals from the new state of the art mills over CPLY.
Your Company continues to have a significant presence in the Infrastructure sector. Certain prestigious projects like Statue of Unity, Bogibeel Bridge, etc., where SAIL was one of the largest supplier of steel, were dedicated to the Nation in the Financial Year 2018-19. In addition to this, large quantities of Plates and Structural steel were supplied to prestigious power and irrigation projects as well as Rail and Road infrastructure projects in 2018-19.
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 & Small Enterprises during Financial Years 2018-19 and 2017-18 is given below:
Total Amount of Procurement
Total Procurement from MSE
%age Procurement from MSE
Modernization & Expansion Plan
The Modernization and Expansion Plan at Rourkela, Burnpur, Durgapur, Bokaro and Salem Steel Plants have been completed and various facilities are under operation, stabilization & ramp up.
During the year 2018-19, your Company has achieved many milestones. At Bhilai Steel Plant, hot trial of Steel Melting Shop-III (SMS-III) facilities viz. Converter-2, Billet Casters 1 & 2, Billet cum Bloom Caster and RH Degasser has been undertaken. Further, processing of Rail Heat at SMS-III through RH Degasser and Billet-cum-Bloom Caster route has also been achieved during the year. The integrated process route under Modernization & Expansion Plan is in operation, stabilization & ramp-up. Hon''ble Prime Minister of India has dedicated the Modernized and Expanded Bhilai Steel Plant to the Nation on 14th June, 2018. A capital expenditure of Rs,4,303 crore has been incurred during Financial Year 2018-19 and capex planned for the Financial Year 2019-20 is Rs,4,000 crore.
The details of Addition, Modification & Replacement (AMR) Schemes under implementation are given in the Management Discussion & Analysis (MD&A) Report.
C. HUMAN RESOURCE MANAGEMENT REVIEW
Your Company recognizes contribution of its Human Resources in providing it the competitive advantage. The Company has achieved its present level of excellence through investment in its human resource, where 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 the Company.
Your Company provides an environment conducive for learning, encourages adoption of best practices in every area and nurtures creativity and innovation among employees. Human Resource initiatives in SAIL are focused on developing team spirit, employee empowerment and their involvement in various improvement activities. Strategic alignment of HRM to business priorities and objectives has facilitated smooth transition to ''state-of-the-art'' technology in the Modernization and Expansion Projects.
Enhanced Productivity with Rationalized Manpower
Your Company achieved the Labour Productivity (LP) of 389 TCS/Man/Year in 2018-19. The manpower strength of the Company was 72,339 nos. as on 31st March, 2019 with manpower rationalization of 4,531 nos. achieved during the year. The enhanced productivity with rationalized manpower could be achieved as a result of judicious recruitments, building competencies and infusing a sense of commitment and passion among employees to go beyond and excel. Trend of enhanced productivity and manpower rationalization since 2009-10, onwards is depicted below:
Developing Employee Capabilities & Competencies
Your Company believes that people''s development is the key for overall growth of the organization. Training and development activities have facilitated development of employee''s knowledge and skills, resulting in advancement of competencies, thereby leading to attainment of organization’s goals and objectives. SAIL has been making sustained efforts through various training and development activities with focus on preservation, transfer and improvement of skills, knowledge and technology in collaboration with reputed organizations and development of effective managerial competencies in association with premier institutes.
Preparing employees for tomorrow, for effectively taking up challenges and discharging new roles and responsibilities is being given a major thrust. Overall 44,369 employees were trained against target of 33,605 employees during the year on various contemporary technical and managerial modules.
Harmonious Employee Relations
SAIL has maintained its glorious tradition of building and maintaining a conducive and fulfilling employer-employee relations environment. The healthy practice of resolving issues through discussions with trade unions/workers'' representatives enabled the Company in ensuring workers'' participation at different levels and establishing a peaceful industrial relations climate. Some of the bipartite 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 (NJCS), 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 periodic basis and jointly evolve recommendations/ action plans for ensuring a safe environment & 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 Welfare Committees, Safety Committee, Canteen Management Committee, Productivity Committee, etc. also offer multiple avenues for enhanced workers'' participation. Workers are also kept abreast of strategic business decisions and their views sought thereon through structured /interactive workshops.
Communication with employees at various levels on a wide range of issues impacting the Company''s performance as well as those related to employees'' welfare is done in a structured manner across the Company. Mass communication campaigns are undertaken at Chief Executive Officer / Senior Officers'' level 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 not only higher production and productivity but also enhance the sense of belongingness of the employees.
Grievance Redressed Mechanism
Effective internal grievances redressal mechanism has been evolved and established in SAIL Plants and Units, separately for Executives and Nonexecutives. Joint grievance committees have been set up at Plant / Unit level for effective redressal of grievances.
SAIL Plants/Units are maintaining 3 stage grievance handling mechanism 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. Against 257 staff grievances received during the Financial Year 2018-19 with 10 grievances pending from previous year, 254 staff grievances have been disposed of during the year, achieving 95.13% fulfillment.
Further, during Financial Year 2018-19, 681 grievances have been received under Centralised Public Grievance Redressal and Monitoring System(CPGRAMS), a National level online system managed by Department of Administrative Reforms and Public Grievance (DARpG), Government of India and 17 grievances had been carried forward from the previous Financial Year. Total 688 grievances have been disposed of during Financial Year 201819, within average time of 11 days, thereby achieving fulfilment rate of 98% and 10 pending for disposal as on 31st March, 2019.
In SAIL, pay and other benefits for executives are based on the Presidential Directives issued by Ministry of Steel, Government of India. The last pay revision effective from 1st January, 2007 was implemented in accordance with Presidential Directives dated 5th October, 2009. In case of Non-executive employees, the salaries and wages are finalized / revised in bipartite forum of National Joint Committee for Steel Industry (NJCS). The last NJCS agreement was finalized and signed on 1st July, 2014, effective from 1st January, 2012. In terms of notification dated 5th June, 2015 issued by Ministry of Corporate Affairs, Government of India, the provisions of section 197 of the Companies Act, 2013 are not applicable to Government Companies. As such, the disclosures to be made in the Board''s Report in respect of overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits are not included in this Report.
Initiatives for Socio-economic Development of SCs /STs & Other Weaker Sections of the Society
Your Company follows Presidential Directives on Reservation for Scheduled Castes and Scheduled Tribes in the matter of recruitments and promotions. As on 31.03.2019, out of total manpower of 72339, 11974 belong to SCs (16.55%) and 10815 belong to STs (14.95%).
SAIL Plants and Units including Mines are situated in economically backward regions of the Country with predominant SC/ST population. Therefore, SAIL has contributed to the overall development of civic, medical, educational and other facilities in these regions. Some of the contributions are:
- Recruitment of non-executive employees, which comprise close to 84% of the total employees, is carried out mainly on regional level and hence, a large number of SCs/STs and other weaker section of the society get the benefit of employment in SAIL.
- Over the years, a large group of ancillary industries have also developed in the vicinity of Steel Plants. This has created opportunities for local unemployed persons for jobs and development of entrepreneurship.
- For jobs of temporary & intermittent nature, generally contractors deploy workmen from the local areas, which again provide an opportunity for employment of local resources of economically weaker section.
- Establishment of SAIL Steel Plants in economically backward areas has given a fillip to the economic activities, thus, benefiting the support population providing different types of services.
- Steel Townships developed by SAIL have the best of medical, education and civic facilities and are like an oasis for the local Scheduled Castes, Scheduled Tribes and other population who share the benefits of prosperity and development along with SAIL employees.
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:
- Special Schools have been started exclusively for poor, underprivileged children at five integrated steel plant locations. The facilities provided include free education, mid-day meals, uniforms including shoes, text books, stationary items, school bags, water bottles and transportation in some cases.
- No tuition fee is charged from SC/ST students studying in the Company run schools, 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 and Burnpur providing free medical consultation, medicines, etc. to the peripheral population mainly comprising of SC/ST and weaker sections of society.
- SAIL Plants have adopted tribal children. They are being provided free education, uniforms, text books, stationery, meals, boarding, lodging and medical facilities for their overall growth at residential hostels, Saranda Suvan Chhatravas, Gyanodaya Hostel and an exclusive Gyan Jyoti Yojana for nearly extinct Birhor Tribe.
- For Skill Development and better employability, tribal school pass outs have been sponsored for coaching in premier institutes for IIT/JEE entrance examinations and for trainings along with monthly stipend, accommodation, transportation and flooding facility at various ITIs, Nursing and other vocational training institutes.
Implementation of Presidential Directives on Reservation for SC/ST
- Liaison Officers have been appointed as per Presidential Directives for due compliance of the Orders and instructions pertaining to reservation for SCs/STs/OBCs at Plants/Units of SAIL.
- SC/ST Cell is functioning in all of the main Plants/Units. A member belonging to SC/ST community is associated in all DPCs/Selection Committees. A sufficiently senior level officer of SC/ST category is nominated for the purpose as per the level of the Recruitment Board / Selection Committees/DPC.
- Internal workshops for Liaison Officers for SC/ST/OBC 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.
- Plants/Units of SAIL have SC/ST Employees'' Welfare Associations which conduct regular meetings with Liaison Officers on implementation of reservation policy & other issues. In addition, an Apex level umbrella body namely SAIL SC/ST Employees Federation also exists in SAIL to represent the issues of SC/ST Employees in a coordinated manner.
Implementation of Right to Information Act, 2005
The provisions under the Right to Information Act, 2005(Act) are being complied by all the Plants and Units of SAIL. All statutory reports, including Annual Report, are being sent to Ministry of Steel and also being uploaded on the website of the Company-www.sail.co.in. Your Company has appointed Public Information Officers(PIO)/Asstt. Public Information Officers and Appellate Authorities and Transparency Officer under Sections 5 and 19(1) of the Act in each Plant and Unit for speedy redressal of the queries received under the Act. Under Sec.5(5), all the officers/ line managers responsible for providing information to the PIO are called Deemed PIO, and are made equally responsible as PIO, towards timely submission of information to the applicant.
An exclusive RTI Portal has been developed with link available on the website of the Company. All the Plants/Units have listed 17 manuals and details of Authorities under the Act are uploaded on the website of the Company. Quarterly Returns and Annual Returns on implementation of the Act are being submitted online through the CIC portal. Implementation of online request has already been introduced from 1st May, 2015. A compilation of Record Retention Policy of various functions of Corporate Office has also been uploaded on the website of the Company. In addition to this, compilations of important decisions of CIC, DoPT circulars and High Court cases are also available on the website of the Company.
Awareness Programs/Workshops on ''Obligation of Public Authorities under RTI'' are being organized across Plants/Units on regular basis and Information Commissioner has been present in most of these programs.
SAIL received a total of 3,814 applications and 653 appeals under the Act during the Financial Year 2018-19 and all of them have been disposed-off within the stipulated time frame under the Act. CIC has also taken up 62 cases and most of these cases were disposed-off in favour of the Company.
Since enactment of the Act, SAIL has received a total of 42,524 applications and 6,413 appeals up to 31st March, 2019, which were disposed-off within the stipulated time. Out of these, 818 cases were taken up by the CIC and most of these cases were disposed-off in favour of the Company.
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.
SAIL''s Citizen Charter has outlined commitment of SAIL towards its stakeholders, thereby empowering them to demand better products and services. Objectives of the Citizen''s Charter of SAIL may be summarized as below:
- Ensuring citizen-centric focus across all its processes by adopting Total Quality Management Principles for improvement of products and services.
- 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.
Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:
The Company has set up Internal Complaints Committees in line with the requirement of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. These Committees have been set up to redress complaints received regarding sexual harassment. All employees of the Company are covered under these Rules. The details of sexual harassment complaints received and disposed of during the year 2018-19 are as under:
Number of complaints received : 7
Number of complaints disposed off : 5
Number of complaints pending as on 31.03.2019 : 2
D. AWARDS & ACCOLADES WON DURING THE YEAR Company Level
Your Company has won the following awards during the Financial Year 201819:
- 1 Prime Minister''s Shram Award (involving 6 employees) for the Year 2017.
- 9 Vishwakarma Rashtriya Puraskar Awards (involving 48 employees) for the Performance Year 2016.
- Governance Now PSU Award for ''Resilient Growth'' in the ''Maharatna'' Category.
- Shri Anil Kumar Chaudhary, Chairman, SAIL has been awarded Top Rankers Excellence Award-2019 for ''Outstanding Leadership'' by Shri Sanjeev Sanyal, Principal Economic Advisor, Government of India.
- Recognition towards Strong Commitment to HR Excellence in the 9th CII HR Excellence Award for the year 2018-19.
- India''s Top Challengers Award at the 16th Construction World Global Awards, 2018.
- National Award for Excellence in Cost Management for first place in ''Public-Manufacturing-Mega'' Category by The Institute of Cost Accountants of India.
- ''Runners up'' Trophy (in Category-A) under NIPM National Award for HR Best Practices 2018.
- SAIL''s Ispat Bhasha Bharti received second prize for the best in-house journal at town level for the Year 2017-18 by Town Official Language Implementation Committee, Delhi.
- Paper submitted for National Conference on Employable Skill Development in New India was selected as one of the Best Practices in India.
- Golden Peacock Environment Management Award (GPEMA) - 2019.
Bhilai Steel Plant
- Smt. Rajani Rajak, Development Assistant(CSR) has been conferred with Nari Shakti Samman, 2018 for outstanding contribution to women''s empowerment.
Durgpaur Steel Plant
- DSP bagged ENCON Award, 2018 for Excellence in Energy Conservation organized by CII, Eastern Region.
- DSP was bestowed with 10 numbers Par-Excellence Award at National Convention on Quality Concepts organized by Quality Circle Forum of India.
Rourkela Steel Plant
- RSP bagged the Certificate of Appreciation-theme based award in Prime Minister''s Trophy Awards 2016-17 for Initiative to reduce turnaround time of BOBS wagons leading to substantial reduction in Demurrage and Optimum Utilization of National Resources.
- RSP received the ''Golden Peacock Award for Corporate Social Responsibility'' for the year 2018.
- RSP was awared with ''Srishti G-Cube Good Green Governance Award'' for the year 2018 for excellence in Environment Management.
- The Quality Circle team from RSP was bestowed with Par Excellence Award at National Convention on Quality Concepts organized by Quality Circle Forum of India.
Bokaro Steel Plant
- BSL received the 18th Annual Greentech Environment Excellence Award-Platinum Category in Metal & Mining Sector for the year 2018 in recognition of excellent environmental performance from Greentech Foundation, Delhi
- BSL bagged the National Water Awards, 2018 in recognition of best large scale industry for industrial water conservation category in eastern zone of India.
IISCO Steel Plant
- ISP bagged the West Bengal Best Employer Brand Award for the year 2018 by World HRD Congress in recognition of HR initiatives.
- ISP has won the ''Golden Peacock National Training Award'' for the year 2017-18.
Alloy Steels Plant
- ASP bagged the Ispat Suraksha Puraskar, 2018 for ''No fatal accident'' during the Calendar Year 2016 & 2017 under Scheme-II.
- ASP received the Ispat Suraksha Puraskar 2018 for ''No fatal accident'' involving Contract Labour during the Calendar Year 2016 & 2017 under Scheme-IV.
- 2 Quality Circle Teams from ASP were bestowed with Excellence Award in National Convention on Quality Concepts -2018 organized by Quality Circle Forum of India.
Salem Steel Plant
- SSP bagged the Innovation and Sustainability Award for Industry for the year 2017-18 by The Institution of Engineers, Salem, in recognition of Excellent Performance in various fields.
Chandrapur Ferro Alloy Plant
- CFP received the Ispat Suraksha Puraskar, 2018 for ''No fatal accident'' involving Employees under Scheme-IV Group ''B''.
- CFP won the Ispat Suraksha Puraskar 2018 for ''No fatal accident involving contract labour for the year 2018 under Scheme-IV Group ''B''.
- RDCIS bagged several prestigious awards during 2018-19 like Metallurgist of the year, O.P Jindal Gold Medal, Indranil Award, M. Visvesvaraya Award, etc.
E. ENVIRONMENT MANAGEMENT
Within the ambit of notified environmental standards applicable for emission and discharge of pollutants into the environment and rules pertaining to eco- friendly management of various wastes, being generated inside the Plant premises as well as in the townships, SAIL Plants and Mines operate their processes without disturbing the ecological balance. Your Company has also drawn its environmental vision in consonance with the Corporate Environmental Policy, which not only addresses the need for compliance of stipulated norms but also emphasises on striving to go beyond. Besides, your Company is committed to address the stakeholders'' concerns and communicate its environmental philosophy to all the stake holders.
Improvement in Emissions and Discharges
SAIL Plants and Mines are efficiently operating the pollution control devices/ facilities and maintaining regularly through revamping/refurbishing/revitalization and also up-grading them as and when required, for the purpose of complying with the applicable environmental standards, which are becoming more and more stringent day by day. Concerted efforts have resulted in achieving major improvements during the Financial Year 2018-19 over the last five years in the following areas:
- The Particulate Matter (PM) Emission Load has reduced by around 16% to 0.70 kg/tcs.
- Specific Water consumption has reduced by more than 6 % to 3.44 m3/ tcs.
- Specific Effluent Discharge has reduced by around 17 % to 1.80 m3/tss.
- Specific Effluent Load has reduced by around 11 % to 0.085 kg/tcs.
- Utilization of BF slag has increased by around 9.5% to 95.89 %.
- Specific CO2 emission has been reduced by more than 3% to 2.57 T/tcs.
Adoption of Energy-Efficient Technologies and State-of-the-Art Pollution Control Equipment/Facilities
Your Company has already implemented latest state-of-the-art clean technologies and best feasible and available pollution control facilities in the course of its Modernization and Expansion Plan. Some of the major clean technologies are as under:
- Tall Coke Oven Batteries along with Coke Dry Cooling Plant, Land based Pushing Emission Control System, Computerized Combustion Control System, etc. at BSP RSP and ISP!
- Sinter Plant integrated with improved ignition system (multi-slit burners), Waste Heat Recovery facility from sinter cooler, etc. at RSP BSL and ISP
- Blast Furnace of higher capacity, equipped with Top Pressure Recovery Turbine, Waste Heat Recovery facility, Pulverized Coal Injection, Cast House De-dusting System and torpedo ladle at BSP RSP and ISP
- Switching over to Cast House Slag Granulation Plant from offsite slag granulation facility, progressively.
- Phasing out of energy-intensive ingot route with continuous casting.
- Walking Beam Reheating Furnace (RHF) in place of pusher type RHF at the Rolling Mill in reducing energy consumption as well as CO2 emission.
a. Environment friendly disposal of Poly Chlorinated Bi-Phenyls (PCBs) - a environmental pollutant
Bhilai Steel Plant, in partnership with the MoEF&CC and UNIDO, has initiated a project for setting up a disposal facility for Polychlorinated Biphenyls (PCBs), categorized as Persistent Organic Pollutants (POPs) at its site. The project is likely to be completed by December, 2019.
b. Bio-sequestration of CO2
For the purpose of reduction of CO2 emission and sequestration of the generated carbon back into the system, SAIL is assessing its carbon footprint in one hand and potential of sequestration of CO2, through its existing biotic resources, on the other. A project on carbon sequestration through forestation has been taken up at the site of Rourkela Steel Plant. M/s. Tropical Forest Research Institute, Jabalpur, has been engaged as the sequestration partner to carry out the project in February, 2014. The project will continue till March, 2020.
c. Enhancing utilization of wastes through application of 4Rs (Reduction, Reuse, Recycling and Recovery):
With a view to increase utilization of wastes being generated inside Plant boundary, in the recent years, some R&D based initiatives like steam maturing of BOF slag, dry granulation of BOF slag, use of BOF slag as rail track ballast, use of BF and bOf slag as substitutes to natural aggregates, use of BF/BOF slag in road making, use of BOF slag as soil ameliorant and in cement making have been undertaken in the recent years.
d. Application of Renewable Energy towards a new era
Your Company has set a target of installation of 242 MW renewable energy Power Plants at the following locations:
- 120 MW capacity Solar Power Plant at Bokaro.
- 50 MW capacity Solar Power Plant at Salem.
- 40 MW capacity Solar Power Plant at Rourkela.
- 25 MW capacity Solar Power Plant at Kulti.
- 7 MW capacity Solar Power Plant at Bhilai.
Besides, some of the major initiatives taken towards implementation of renewable energy projects include setting up of (i)10 MW Hydel Power Plant at Mandira Dam, RSP for which a Joint Venture Agreement has been signed between RSP and Green Energy Development Corporation of Odisha Limited (GEDCOL) and (ii) 6.195 MW roof top Solar Units on different buildings under Ministry of New and Renewable Energy (MNRE) scheme. Further, 3 MW roof top Solar Power units have been installed on various buildings of SAIL Plants and Units.
e. Bio-digester for processing of wastes
As a green initiative and in compliance with the Solid Waste Management (SWM) Rules, 2016, DSP and RSP have installed bio-digesters for processing of about 400 kg canteen wastes per day, resulting in safe disposal of such biodegradable wastes, inside plant premises. The bio-digester converts the bio-degradable solid wastes into compost, which is used as manure for horticulture. BSL has also taken up a project for installation of a bio-gas plant for processing of canteen waste.
Environmental Management System (EMS) linked with ISO-14001:2015
Environmental Management System (EMS) linked to ISO 14001 is a set of processes and practices that enable an organization to reduce its environmental impacts and increase its operating efficiency. Implementation of EMS has helped SAIL''s Plants and Mines to ensure that their performance being always within the applicable regulatory requirements.
During the Financial Year 2018-19, implementation of EMS (ISO-14001:2015) has been completed at IISCO Steel Plant and Gua Ores Mine. Re-certification of EMS (ISO 14001:2015) was done at Meghahatuburu Iron Ore Mine, Kiriburu Iron Ore Mine, Bolani Ores Mine, Barsua Iron Mine and Dalli Mechanised Mine. Six warehouses (Dankuni, Faridabad, Kalamboli, Chennai, Delhi and Vishakhapatnam) of CMO have also been re-certified with EMS (ISO 14001:2015) during 2018-19.
Sustainable Development Projects
Restoration and rehabilitation of degraded ecosystem is essential for maintaining and enhancing bio-diversity as well as replenishing the eco-system services. About 250 acres of old barren overburden dumps and water void in 200 acres of limestone mined out area in Purnapani have been successfully restored to fully functional ecosystems that generate ecosystem services and goods as well as sequester CO2.
Your Company realizes the role of plantation in overall environmental management initiatives. It is a well-known fact that plants play an important role in balancing the ecosystem and function as a carbon sink. Keeping the enormous contribution of the plants in mind, SAIL has long been adopting extensive afforestation program religiously in its Plants and Mines since its nascent stage. More than 20.5 million saplings have been planted across SAIL Plants and Mines till date. Giving special thrust for plantation, more than 4.42 lakhs of saplings have been planted during 2018-19.
F. STRATEGIC INITIATIVES OF THE COMPANY
Your Company has adopted a multi-pronged approach that includes organic growth, brown-field projects, technology leadership through strategic alliances, ensuring raw material security by developing new mines, diversifying in allied areas, etc. In line with the above approach, SAIL has formed Joint Venture Companies in different areas viz. power generation, rail wagon manufacturing, slag cement production, securing coking coal supplies from new overseas sources, etc. New initiatives are currently being explored in areas such as pellet manufacturing in a joint venture, outsourcing of power distribution and township maintenance services in SAIL townships, etc. The status of Strategic Initiatives taken by your Company in the recent past includes the following:
- Memorandum of Understanding with KIOCL for exploring the Techno-economic Feasibility of Setting up of a Pellet Plant of Suitable Capacity under a Joint Venture: A Memorandum of Understanding(MOU) with M/s. KIOCL Limited (KIOCL) was signed on January 30, 2019 to undertake a Joint Techno-Economic Feasibility Study for setting up of a Pellet Plant of suitable capacity at any appropriate location across SAIL''s Integrated Steel Plants.
- Memorandum of Understanding with Capital Goods Manufacturers Under ''Make In India'' Initiative: The National Steel Policy-2017 envisages creation of 300 million tonnes (MT) of steel capacity in the Country by 2030-31 as against existing capacity of about 137 MT. The estimated import of plant and equipment, for reaching 300 MT capacity, will be around USD 25 billion. Further, it is estimated that at 300 MT capacity level, India will have to spend about USD 500 million annually for import of proprietary and other spares. To accomplish the Vision of the Government of India, your Company has signed MOUs with Capital Goods Manufacturers'' (BHEL and HEC) in order to give a boost to indigenization of manufacturing of capital goods related to steel sector. The MOUs were signed at a Conclave on Capital Goods for Steel Sector: Manufacturing in India held on October 23, 2018 at Bhubaneswar, Odisha.
- GEDCOL SAIL Power Corporation Limited, a new Joint Venture Company between SAIL and M/s. Green Energy Development Corporation of Odisha Limited (a wholly owned subsidiary of Odisha Hydro Power Corporation Ltd.) has been formed on September 6, 2018 for setting up 10 MW small hydro-electric power plant at Mandira Dam, Rourkela, Odisha.
- Closure/Exit from non-operational and non-performing Joint Venture Companies and Subsidiary Companies of SAIL: Your Company has initiated actions for closure / exit from certain Joint Venture Companies as well as Subsidiary Companies which are either non-operational or non-performing. Closure action for two subsidiary companies viz. SAIL Jagdishpur Power Plant Limited and SAIL Sindri Projects Limited under Fast Track Exit Mode is in progress.
- In order to meet the challenges of adverse business environment, a Company-wide turnaround exercise named ''SAIL Uday'' was initiated during 2016-17. As a part of the ''SAIL Uday'' exercise, your Company engaged M/s. Boston Consulting Group (BCG), a leading Global Management Consultant, to study the health of the Company, suggest suitable measures for its turnaround and provide hand holding support and assistance to SAIL for implementation of approved road map for turn around. The study phase of ''SAIL Uday'' culminated in October, 2017 with the submission of the ''Comprehensive Turnaround Roadmap'' Report by
BCG. The Roadmap contains recommendations encompassing various functional areas of the Company including Raw Materials, Production, Sales & Marketing, Supply Chain & Logistics, Manpower & Productivity, etc. SAIL is presently in the process of implementation of the recommendations which are expected to contribute towards improvement in the Company''s performance.
Disinvestment of SAIL Plants: On 27th October, 2016, the Government of India (Gol) accorded ''in-principle'' approval for Strategic Disinvestment of three Units of SAIL viz. Salem Steel Plant (SSP), Salem, Visvesvaraya Iron and Steel Plant (VISP), Bhadrawati and Alloy Steels Plant (ASP), Durgapur. The entire process of Strategic Disinvestment is being overseen by an Inter-Ministerial Group(IMG) constituted by the Ministry of Steel(MoS) and chaired by the Secretary, Steel.
SAIL Board has accorded ''in-principle'' approval for the Strategic Disinvestment of these Steel Plants. To carry out the process, the Company has appointed Transaction Advisor(TA), Legal Advisor (LA), Asset Valuer(AV) and Tax cum Accounting Consultant (TCA).
Upon receipt of approval of the Government for issue of Preliminary Information Memorandum (PIM)/Expression of Interest request (Eol) for disinvestment of ASP on 1st February, 2018 from the Ministry of Steel, Public Notice for inviting Eol for ASP Durgapur was issued on 14th February, 2018. Since, the Eols received in response to the above were not meeting the specified eligibility criteria, the process has been annulled. Fresh process in this regard has been initiated and revised PIM/Eol Requests of ASF, VISP and SSP have been issued.
Business Excellence Initiatives
Implementation of Management Systems
Most of SAIL Plants/Units are certified to ISO 9000, ISO 14000, OHSAS 18000 and SA 8000 Management Systems. BSP BSL and DSP have implemented ISO 50000 (Energy Management System) and ISO 27000 (Information Security System) also in addition to the above mentioned four systems.
Certifications achieved during 2018-19:
- Plants and Units upgraded their systems to the new version i.e. ISO 9001 : 2015 & ISO 14001 : 2015
- ISP- BOF, CCP Blast Furnace and Coke Ovens certified to ISO 9001 : 2015.
- ISP - CE Certification achieved for exporting structurals.
- DSP- Medium Structural Mill received CE certificate required for export of its products.
IT Related Initiative
Your Company has put in consistent efforts to develop and implement Information Technology (IT) systems in all spheres of business, in line with the objective of achieving speed and accuracy of data availability and automating business processes.
Due to sustained efforts over the years to keep pace with latest technology your Company has been able to cover the major spectrum of business operations under the sphere of Enterprise Resource Planning (ERP). Four Integrated Steel Plants at Bhilai, Durgapur, Bokaro and Rourkela and Central Marketing Organization (CMO) have already implemented ERP ERP implementation at 5th Integrated Steel Plant i.e. IISCO Steel Plant is in progress with Go-live planned in Financial Year 2019-20. At Corporate Office, ERP has Gone Live in July, 2019.
SAIL embarked on the journey of availing IT services through Cloud model which is increasingly becoming de facto industry standard due to its inherent advantages of quick deployment, cost effectiveness, ease of manageability while providing access to the latest technology. Corporate Office pioneered in this initiative for deployment of ERP solution with ISP following the same for its ERP deployment.
Manufacturing Execution Systems (MES) in Bhilai Steel Plant has been extended in URM and SMS-III to cater to shop execution, material tracking and balancing, sampling and result recording, etc. inside each shop for enabling rolling as per stringent quality requirement of Railways and facilitate timely dispatch.
Implementation of e-Way Bill with respect to inter-State movements for statutory compliance has been done in major Plants/Units of the Company.
As part of GOI initiative, steps have been taken to maximize procurement through GeM Portal and as a step towards automation, interfacing of Purchase Orders with ERP systems has been initiated.
Your Company implemented in-house Online Human Resource Management System (HRMS) for creating a centralized repository of employee information mainly pertaining to Employee Master Data, Last Pay Certificate, Pension Data, Grievance System, Training Module and MIS Reports.
Your Company in its endeavor of keeping pace with digitization and changing times has taken initiatives in mobility and has developed android apps in areas pertaining to Human Resources as well as capturing of shop floor parameters related to production.
To promote transparency across the Organization, system has been implemented for Complaint Registration and Vigilance Clearance for executives of the Company.
Communication is assuming an increasingly important role today for every Corporate. The role of corporate communication in SAIL, the largest public sector steel maker of the Nation and a Company having multi-unit, pan-India presence, becomes vital in reaching out to its stakeholders. Recognizing the evolving paradigm of communication and the ways of sharing information with both external and internal stakeholders, your Company keeps undertaking several initiatives to maintain a healthy flow of information and reach out to the stakeholders.
Internal Communication efforts: Continuous information dissemination in your Company and employee engagement is a primary focus area of Corporate Communications team. This was achieved through various means:
Large Group Interactions - The senior management of your Company lead by Chairman and Board of Directors interacted with employees through a two-way communication process at every Plant & Unit of the Company in a phase-wise and structured manner.
Communicating Company''s strategies and aspirations - In Financial Year 2018-19, employees were apprised of company related information and other important issues during every important occasion through various channels of communication including short videos developed in-house, intranet, corporate house journal: SAIL-News, posters, messages and other management collaterals among others.
Focus areas - The focus areas of communication were on : targets and challenges of the Company, roadmap to achieve Company''s goals, achievements, technological developments in Company, overall financial situation, domestic steel scenario etc. All communications efforts were aimed at highlighting and disseminating these to encourage SAIL collective greater efforts.
External Communications Efforts:
Media Relations - Excellent media relations were maintained through proactive and regular interactions with various media like newspapers, electronic including television and web based media by sharing Company''s important news on a regular and timely manner. Along with this, there were several interviews conducted and covered by top national media outlets to get an overview, vision, target roadmaps of SAIL management.
Efficacious Brand Outreach - Newer option of reaching target audience was experimented through FM radio. Your Company judiciously utilized various FM Channels for publicity. Several interactive sessions were organized to engage with and reach out to maximum possible target audiences, which included architects, customers, educational institutes, Railways, Defence etc. Several branding activities were also undertaken at various platforms to create further recall of Brand SAIL.
Exhibitions & Visibility - During this period, SAIL also participated in various exhibitions including Metal & Metallurgy, Vibrant Gujarat, ISA Steel Conclave, FICCI India Steel and etc. creating far reaching visibility of Brand SAIL as well as raising more awareness about SAIL''s variety of new age steel products. The year also saw SAIL associating with various sponsorship events to create more connect with the Company''s brand.
Social Media Efforts:
SAIL also effectively utilized its social media handles like Face book, Twitter, Instagram, YouTube, etc. for instantly reaching out and connecting with the external as well as internal stakeholders in a sustained manner. Celebration of every special occasion and event was shared with stakeholders on the social media. Short films, developed in-house, on relevant subjects related to steel were also shared on the Company''s social media handles.
Your company has stood the test of time and has its rich legacy since the year 1959. This year was the diamond jubilee year of production of SAIL. To highlight your Company''s rich legacy and future plans, it was decided to celebrate this 60th year in a befitting manner. A special logo commemorating the milestone year was designed. A commemorative event along with a special SAIL Day Walk and a unique cricket match between SAIL (SAIL GIANTS) and Rest of Steel Industry (STEEL WARRIORS) was organized at corporate level as a part of the celebration. The efforts were lauded by the entire steel industry. Your company''s continuous efforts and initiatives to engage with stakeholders and reach out to them through communication made a lasting impact in the minds of the people.
G. VIGILANCE ACTIVITIES
The objective of SAIL Vigilance is to facilitate an environment enabling people to work with integrity, efficiency and in a transparent manner, upholding highest ethical standards for the organization. To achieve this objective, the Vigilance Department carries out preventive, proactive and punitive actions with greater emphasis in the preventive and proactive functions. Following activities were undertaken during the Financial Year 2018-19:
- To increase vigilance awareness amongst employees, vigilance awareness sessions and workshops were regularly held at various Plants and Units of the Company. A total of 178 workshops involving 2994 participants were organized for enhancing Vigilance Awareness on Whistle Blower Policy, Purchase/Contract Procedures, Conduct & Discipline Rules, Common Irregularities, 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 2444 periodic checks including file scrutiny and Joint Checks were conducted at different Plants/ Units.
- 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 these Intensive Examinations, high value procurement / contracts are scrutinized comprehensively and necessary recommendations are forwarded to concerned departments for implementing suggestions for improvement.
- As per the Guidelines of Central Vigilance Commission, Vigilance Awareness Week was observed in SAIL between 29th October to 3rd November, 2018. The week started with administering the Integrity pledge and reading out the messages of dignitaries on 29th October 2018 at SAIL Corporate Office as well as all Plants/Units of SAIL. During the week, Workshops/ Sensitization programmes, Customers meet, Anticorruption March / Walkathon, events like quiz, essay, slogan & drawing/ poster, debate competition were organized for the employees and their families. As outreach measures, various events like Speech/Oratory competition, Poster/Drawing competition, Essay/Slogan competition, Inter school debate competition, Quiz competition were organized across various townships of SAIL and metro cities of Delhi and Kolkata, in which around 900 students from 27 Colleges / Universities and more than 4000 students from various schools participated.
- The following three thrust areas were identified by SAIL Vigilance:
i) Surveillance in the areas of receipt, sampling & testing of high value raw materials.
ii) Audit of SIPs implemented in 2015 and 2016.
iii) Scrutiny of emergency procurement and contract cases.
- ''Inspiration-Prerna'', an in-house publication of SAIL Vigilance is being published regularly. The above publication contains case studies, informative articles, quiz on policy matters, etc. to enhance awareness of the readers.
- As on 01.04.2018, a total of 106 complaints were pending and the closing balance as on 31.03.2019 was 102. The summary of processing of complaints during 2018-19 is as under:
Type of Complaints disposed:
Closed as found anonymous / pseudonymous (filed in line with CVC guidelines)
Closed as no vigilance angle / allegations not substantiated
Referred to other departments
Closed with preventive/administrative Recommendations
Regular Departmental Actions initiated
(11 cases of major penalty against 20 employees and 13 cases of minor penalty against 26 employees)
The Company has adopted Vigil Mechanism for conducting the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behavior. All employees of the Company and Directors on the Board of the Company are covered under this Mechanism. This Mechanism has been established for employees to report concerns about unethical behavior, actual or suspected fraud or violation of Code of Conduct. It also provides for adequate safeguards against the victimization of employees who avail the Mechanism and allows direct access to the Chairperson of the Audit Committee in exceptional cases. No complaint was received during the Financial Year 2018-19.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
As per the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015, Management Discussion and Analysis Report covering the performance and outlook of the Company is attached and forms part of this Report.
The Statutory Auditors'' Report on the Accounts of the Company for the Financial Year ended 31st March, 2019 along with Management''s replies thereon is placed at Annexure-I to this Report. The Comptroller & Auditor General of India (C&AG) vide its letter dated 27th July, 2019 has given Nil comments on the Standalone Financial Statements of the Company for the Financial Year ended 31st March, 2019 under Section 143(6)(b) of the Companies Act, 2013. A copy of the above letter of C&AG is placed at Annexure-II to this Report.
Pursuant to the direction of the Central Government for Audit of Cost Accounts, the Company has appointed M/s. Sanjay Gupta & Associates, New Delhi, M/s. Shome & Banerjee, Kolkata and M/s. R J Goel & Co., New Delhi as Cost Auditor(s) for the Financial Year 2018-19.
SECRETARIAL AUDITOR''S REPORT
In terms of the provisions of Section 204 of the Companies Act, 2013, the Board of Directors has appointed M/s. Agarwal S. & Associates, Company Secretaries, as the Secretarial Auditor to conduct Secretarial Audit of the Company for the Financial Year ended on 31st March, 2019. Secretarial Audit Report is placed at Annexure-III to this Report.
With regard to the observation of the Secretarial Auditor, that composition of the Board of Directors of the Company was not as per requirements during a part of the Financial Year 2018-19, it is stated that appointment of Independent Directors on the Board of the Company is made by the Company based on nomination by Government of India. The Company has requested Ministry of Steel, Government of India for nomination of requisite number of Independent Directors on its Board.
In respect of observation regarding performance evaluation of the Directors not being carried out pursuant to the Regulation 17(10), 25(4) and 19(4) read with Schedule-ll Part D(A) of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is mentioned that Ministry of Corporate Affairs has vide its Notification dated 5th June, 2015 notified the exemptions to Government Companies from the provisions of the Companies Act, 2013 which, inter-alia, provides that Sub Sections (2), (3) & (4) of Section 178 regarding appointment, performance evaluation and remuneration shall not apply to Directors of the Government Companies. Further, the Ministry of Corporate Affairs vide Notification dated 5th July, 2017 has notified certain amendments in Schedule IV of the Companies Act, 2013 relating to Code for Independent Directors. As per the Notification, in Schedule IV, the clauses relating to evaluation of performance of Non-Independent Directors, Chairperson and Board have been exempted for Government Companies.
In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Corporate Governance Report and Auditors'' Certificate on compliance of conditions of Corporate Governance is placed at Annexure-IV to this Report.
In terms of the SEBI Regulations, 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
As per Regulation 34(2)(f) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015, the Business Responsibility Report describing the initiatives taken by the Company from Environmental, Social and Governance perspective forms part of this Annual Report.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
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.
Your Company has four other subsidiary Companies namely, SAIL Refractory Company Limited (SRCL), SAIL Jagdishpur Power Plant Limited, SAIL Sindri Projects Limited and Chhattisgarh Mega Steel Limited. SRCL is operating the Salem Refractory Unit which was acquired by SAIL from Burn Standard Company Limited on 16thDecember, 2011. 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 have not taken off and are under closure. Closure of SAIL Jagdishpur Power Plant Limited and SAIL Sindri Projects Limited through Fast Track Exit Mode has been filed with the Ministry of Corporate Affairs. Chhattisgarh Mega Steel Limited was incorporated as a Special Purpose Vehicle with an objective of fast tracking developmental processes such as land acquisition, R&R activities, ensuring power and water linkages, securing necessary statutory approval/in-principle approval from Ministry of Environment, Forest and Climate Change, etc. for setting up of an Ultra Mega Steel Project. The project is no longer being pursued by SAIL.
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 the Subsidiary Companies concerned between 11 AM to 1 PM on working days. A hard copy of the details of accounts of subsidiaries shall be furnished to the shareholders on receipt of written request.
CONSOLIDATED FINANCIAL STATEMENTS
Pursuant to provisions of Section 129(3) of the Companies Act, 2013, the duly Audited Consolidated Financial Statements are placed at Annexure-V to this Report. The Statutory Auditors'' Report on the Consolidated Financial Statements along with the Management''s replies thereon is placed at Annexure-VI to this Report. The Comptroller & Auditor General of India (C&AG) vide its letter dated 27th July, 2019 has given Nil comments on the Consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2019 under Section 143(6)(b) read with Section 129(4) of the Companies Act, 2013. A copy of the above letter of C&AG is placed at Annexure-VII to this Report. Further, the statement containing salient features of the financial statements of the subsidiary, joint venture and associate companies in the prescribed Form AOC-1 is placed at Annexure-VIII to this Report.
EXTRACT OF ANNUAL RETURN
The Extract of Annual Return in Form MGT-9 as per the provisions of the Companies Act, 2013 and Rules prescribed therein is placed at Annexure-IX to this Report.
During the year, 8 meetings of the Board of Directors of the Company were held, the details of which are given in the Corporate Governance Report.
The Audit Committee of the Board was initially formed by the Company in 1998. The Audit Committee has been reconstituted from time to time in terms of the SEBI Regulations and Companies Act, 1956/2013. The minutes of the Audit Committee meetings are circulated to the Board, discussed and taken note of. The composition and other details pertaining to the Audit Committee are given in the Corporate Governance Report.
INTERNAL FINANCIAL CONTROL (IFC) AND ITS ADEQUACY
The Company has well established and documented policies and procedures, which are adhered to for transparent, efficient and ethical conduct of business and for safeguarding its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of financial disclosures. Further, the Company has a good corporate governance structure, and strong management processes, controls, policies and guidelines which drives the organization towards its business objective and also meets the needs of various stakeholders.
Your Company''s robust protocols such as independent internal audit, documented policies, guidelines, procedures, regular review by Audit Committee / Board, etc. helps in compliance of Internal Financial Controls under the Companies Act, 2013, SEBI (LODR) Regulations, 2015, etc. The Company is committed to the highest standards of Corporate Governance where the Board is accountable to all stakeholders for reporting effectiveness of Internal Financial Control (IFC) and its adequacy. Corporate Governance has been carried out in accordance with the Companies Act, 2013 and SEBI (LODR) Regulations, 2015, etc.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013(the Act), the Directors state that:
(i) in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures;
(ii) 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) 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) the Directors have prepared the Annual Accounts on a Going-Concern basis;
(v) the Directors have laid down internal financial control to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and
(vi) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
INDEPENDENT DIRECTORS'' DECLARATION
In terms of section 149(7) of the Companies Act, 2013, necessary declaration has been given by each Independent Director stating that he/she meets the criteria of independence as provided in sub-section (6) of Section 149 of the Companies Act, 2013.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
In terms of the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014, the details of Loans, Guarantees and Investments given during the Financial Year ended on 31st March, 2019 are given in Annexure-X to this Report.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN SUB-SECTION (1) OF SECTION 188
All the contracts / arrangements / transactions entered by the Company during the Financial Year 2018-19, with the related parties were in the ordinary course of business and on an arm''s length basis. The transactions with the related parties have been disclosed in the financial statements. Therefore, particulars of contracts or arrangements with related parties referred to in Section 188(1) along with the justification for entering into such contract or arrangement in Form AOC-2 do not form part of the Report.
DIVIDEND DISTRIBUTION POLICY
In terms of the Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors of the Company has adopted Dividend Distribution Policy which is uploaded on the website of the Company - https://sail.co.in/sites/default/files/Dividend_Distribution_ Policy_2017.pdf
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
In accordance with the provisions of Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies(Accounts) Rules, 2014, the particulars relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo are given in Annexure-XI to this Report.
RISK MANAGEMENT POLICY
Enterprise Risk Management (ERM) is a strategic business discipline that supports the organization''s objectives by addressing its risks and managing the impact of these risks. It is the practice of planning, coordinating, executing and handling the activities of an organization in order to minimize the impact of risk on investment, earnings and also strategic, financial and operational risks.
The Risk Management Policy of your Company was approved by the Board much before the same became a statutory requirement and since then, risk management in SAIL has grown and developed in line with internal and external changes. The Policy provides guidance for the management towards business risks across the Organization. It focuses on ensuring that the risks are identified, evaluated and mitigated within a given time frame on a regular basis.
Currently, the architecture of Enterprise Risk Management in SAIL comprises a well-designed multi-layered organization structure, with each Plant/Unit having its own perceived Risks which are under constant monitoring by the Risk Owners / Risk Champions who frame and implement the mitigation strategy and take it to its logical conclusion. Risk Management Committee of the Plant/Unit Chaired by the Head of the Plant /Unit periodically reviews the risks and its mitigation status and reports the same to Chief Risk Officer (CRO) of SAIL. SAIL Risk Management Committee (SRMC) oversees the Risk Management function in the Company by addressing issues pertaining to the policy formulation as well as evaluation of risk management function to assess its continuing effectiveness. Risks identified by the Risk Champion/Risk Officer are deliberated in the Risk Management Committee and strategy for mitigating such risks is formulated. Roles and responsibility of Board, Audit Committee, SAIL Risk Management Committee, Risk Management Steering Committee, CRO, Risk Officer/Risk Champion related to risk management are defined under the Policy and duly approved by the Board.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
SAIL''s Social Objective is synonymous with Corporate Social Responsibility. Apart from the business of manufacturing steel, the objective of your Company is to conduct business in ways that produce social, environmental and economic benefits to the communities in which it operates. For any organization, CSR begins by being aware of the impact of its business on society. With the underlying philosophy and a credo to make a meaningful difference in people''s lives, your Company has been structuring and implementing CSR initiatives right from the inception. These efforts have seen the obscure villages, where SAIL Plants are located, turn into large industrial hubs today.
The CSR initiatives of your Company have always been undertaken in conformity to the Companies Act-2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014. SAIL carries out CSR projects in and around periphery of steel townships, mines and far flung location across the Country in the thrust areas falling in line with Schedule-VII of the Companies Act-2013, namely, education, health care, access to drinking water, sanitation, village development, environment sustainability, women empowerment, assistance to divyangs, sustainable income generation through self-help groups, sports coachings, promotion of art and culture, etc.
The details of various CSR initiatives taken by the Company along with the Report on CSR in prescribed format are placed at Annexure XII to this Report. The CSR Policy of the Company is available on the website of the Company-www.sail.co.in.
Swachha Bharat Abhiyaan-SwachhaVidhyalayaAbhiyaan
SAIL actively participated in the Swachch Bharat Abhiyan initiated by the Hon''ble Prime Minister of India. Under the campaign, 672 toilets in schools falling within the periphery of its Plants & Mines in the States of Chhattisgarh, West Bengal, Odisha, Jharkhand, Madhya Pradesh and Tamil Nadu had been constructed. The toilets are also being maintained with the help of respective School Management Committees.
Healthcare: SAIL''s extensive & specialized Healthcare Infrastructure provided specialized and basic healthcare to 1.72 crore people living in the vicinity of its Plants and Units during the period 2011-18. In order to deliver quality healthcare at the doorsteps of the needy, regular health camps in various villages on fixed days are being organized for the people living in the periphery of Plants/Units, Mines and far-flung areas. During the Financial Year 2018-19, about 3050 Health Camps have been organized benefitting approx. 60,000 villagers. 5 Mobile Medical Units (MMUs) running in the Plant peripheries have benefitted about 44,000 villagers at their doorsteps. 24 Primary Health centres at Plants exclusively provided free medical care and medicines to above 69,000 villagers.
Education: To develop the society through education, SAIL is supporting about 77 schools, providing modern education to more than 40,000 children in the steel townships, 19 Special Schools (Kalyan & Mukul Vidyalayas) are benefitting over 3741 BPL category students at integrated steel plant locations with facilities of free education, mid-day meals, uniform including shoes, text books, stationary items, school bag, water bottles and transportation under CSR. SAIL in association with the Akshya Patra Foundation, is providing Midday meals to 64,000 students in over 600 Govt. schools in Bhilai and Rourkela.
Women Empowerment & Sustainable Income Generation: Vocational and specialized skill development training targeted towards sustainable income generation has been provided to 710 youths & 1168 women of peripheral villages in areas such as Nursing, Physiotherapy, LMV Driving, Computers, Mobile repairing, Agriculture techniques, Achar/Pappad/ Agarbati/Candle making, Screen printing, Handicrafts, Sericulture, Yarn Weaving, Tailoring, Spices, Towels, Gunny-bags, Low-cost-Sanitary Napkins, Sweet Box, Soap, Smokeless chullah making, etc. 816 youths have been sponsored for ITI training at Bolani, Bargaon, Baliapur, Bokaro Pvt. ITI and Rourkela, etc.
Connectivity & Water facilities in Rural Areas: Over 79.03 lakh people across 450 villages have been connected to mainstream by SAIL, since its inception, by constructing and repairing of roads. Over 8176 water sources have been installed, since inception, thereby enabling easy access to drinking water to over 50 lakh people living in far-flung areas.
Environment Sustainability: Maintenance of parks, water bodies and botanical gardens in its townships and plantation & maintenance of over 5 lakh trees at various locations have been undertaken.
Support to Divyangs & Senior Citizens: Divyang children/people are being supported through provision of equipments like-tricycle, motorized vehicles, calipers, hearing aids, artificial limbs, etc. SAIL supports various schemes and centres at SAIL Plants under CSR like Sneh Sampada, Prayasand ''Muskaan at Bhilai; Schools for blind, deaf & mentally challenged children and Home and Hope at Rourkela; Ashalata Kendra at Bokaro; various programs like Handicapped Oriented Education Program and Durgpaur Handicapped Happy Home at Durgapur; and Cheshire Home at Burnpur. Old age homes are being supported at different Plant townships like Siyan Sadan at Bhilai, Acharya Dham and Badshah at Durgapur, etc.
Sports, Art & Culture: SAIL is regularly organizing inter-village sports tournaments, extending support to major national sports events & tournaments. Also, supporting and coaching aspiring sportsmen and women through its residential sports academies at Bokaro (Football), Rourkela (Hockey) - with world class astro-turf ground, Bhilai (Athletics for boys), Durgapur (Athletics for girls) and Kiriburu, Jharkhand (Archery). Cultural events like Chhattisgarh Lok Kala Mahotsav, Gramin Lokotsav are organized every year.
Development of villages in Saranda Forest: In an effort to bring the marginalized masses of the remote forest areas to the mainstream of development, SAIL in association with Government of Jharkhand and Ministry of Rural Development, Government of India actively participated in the development process of Saranda forest, Jharkhand. SAIL provided ambulances, 7000 each of bicycles, transistors, solar lanterns and established an Integrated Development Centre (IDC) at Digha village in Saranda forest. IDC comprises of facilities like Bank, Panchayat Office, Ration shop, Telecom office, Anganwadi Centre, Meeting room etc. for the local populace.
In an effort to align the marginalized masses, a project to promote comprehensive Water Supply and Sanitation has been initiated by Rourkela Steel Plant by developing sustainable tap water source and constructing useable toilets for each family in 19 villages of Rourkela, i.e. over 10,000 natives have benefitted. The villagers have been mobilized and empowered for their active participation in the project. Village level committees have been formed for long-term sustenance of the project.
SAIL/Bolani Ore Mines has initiated a project to provide continuous drinking water supply and sanitation facility in the remote village of Barik Sahi (Kuni Sahi) under Bolani Panchayat connecting it with the water source ''Jhinkaria Spring'', on south of Bolani through a network of G.I. pipelines. All the 300 natives of Barik Sahi (Kuni Sahi), who had to travel up to 2 kms daily to fetch water from the springs, have been benefitted with this facility.
SAIL Bio-Diversity Environment Theme Park ''VASUNDHARA'' near JC Bose Avenue of DSP Township, Durgapur: The development of a 409 acres BioDiversity Environment Theme Park with water body and plantation of 400 varieties of trees to attract migratory birds facilitating avian diversity, propagation of medicinal plants, rainwater harvesting and soil conservation for maintaining ecological balance and environmental sustainability has been carried out. The park site is enriching the environs for 75,000 natives year on year.
i. During the year, the Company has not accepted any deposits under the Companies Act, 2013.
ii. No significant or material orders were passed by the Regulators or Courts or Tribunals impacting the going concern status and Company''s operations in future. However, attention of Members is drawn to the statement on contingent liabilities in notes forming part of the Financial Statements.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
- Shri Puneet Kansal, Joint Secretary to the Government of India, Ministry of Steel has been appointed as Director w.e.f. 7th May, 2018.
- Shri PK. Singh has ceased to be Chairman and Managing Director of the Company w.e.f. 30th June, 2018(A/N).
- Shri Saraswati Prasad, Special Secretary & Financial Adviser to the Government of India, Ministry of Steel was holding Additional Charge of Chairman and Managing Director of the Company for the period 1 st July, 2018 to 21st September, 2018.
- Shri Raman has ceased to be Director w.e.f. 31st July, 2018(A/N).
- Shri Harinand Rai has been appointed as Director w.e.f. 1st August, 2018 (F/N).
- Shri Anil Kumar Chaudhary, Director (Finance) has been appointed as Chairman of the Company w.e.f. 22nd September, 2018.
- Prof. Ashok Gupta, Mrs. Anshu Vaish and CA Parmod Bindal have been re-appointed as Independent Directors for a period of one year w.e.f. 18th November, 2018.
- Shri Krishan Kumar Gupta has been appointed as Independent Director w.e.f. 21st December, 2018.
- Shri Vivek Gupta has been appointed as Director w.e.f. 27th March, 2019 (F/N).
- Consequent to superannuation of Shri M.C. Jain, ED(F&A) and Company Secretary on 30th June, 2019, Shri M.B. Balakrishnan, DGM (Board & Company Affairs), SAIL has been appointed as Company Secretary of the Company w.e.f. 1st July, 2019.
The Board of Directors wish to place on record their appreciation for the support and value contributed by every member of the SAIL family. The Directors are thankful to the State Governments, Electricity Boards, Railways, Banks, Suppliers, Customers and Investors for their continued co-operation. 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
(Anil Kumar Chaudhary)
Place: New Delhi
Dated: 31st July, 2019