September 08, 2008

SAIL to mitigate cost pressures through internal efficiencies

FE reported that Steel Authority of India Limited is looking at increasing its internal efficiencies to mitigate rising input cost.

Mr SK Roongta chairman of SAIL said that though there is tremendous pressure with regard to the increase in the cost of raw materials, it will not very adversely affect SAIL.

He said that "We are meeting rising input cost through internal efficiencies like increasing productivity, reducing energy consumption and increasing the share of value added and special steel products. In 2007, we reduced our energy consumption by 3%. Through other value added measures, we will compensate it."

Mr Roongta said that coking coal has made a big difference to the input costs. He added that "There has been a three fold increase in the price of coking coal from USD 98 per tonne to USD 300 per tonne in the space of one year. There is no doubt that there is tremendous pressure with regard to input costs."