The Hindu : Business : Alloy Steel Plant on comeback trail

Online edition of India's National Newspaper
Wednesday, Jan 26, 2005

Business

Business

Alloy Steel Plant on comeback trail

By Indrani Dutta

KOLKATA, JAN. 25. The Alloy Steel Plant (ASP), one of the three special steel plants under the Steel Authority of India Ltd (SAIL), is on the comeback trail paving way for optimism on its revival.

Located at Durgapur in West Bengal, the ASP was once a sell-off candidate along with the Salem Steel and the Visveswaraya Iron and Steel Plant — two other special steel plants under SAIL.

However, now the ASP, which has been netting a positive gross margin in the last few months, is expected to make a turnaround sooner than the targeted year of 2007. It has the capacity to make a variety of stainless and non-stainless steels like bullet-proof steel. It also supplies import substitution items.

Sources told The Hindu that accumulated losses of ASP top Rs. 1,600 crores. Increased production, better techno-economics and a buoyant market were the factors that contributed to the upswing in the performance. In the first half, its revenues stood at Rs. 249.80 crores against Rs. 180.90 crores in the first half of 2003-04. Losses too were sharply down at Rs. 33.70 crores against Rs. 64.80 crores.

The sources said that with the installation of some additional facilities, ASP's capacity for liquid steel manufacture was set to increase from the present 1.6 lakh tonnes to 2.24 lakh tonnes annually. "Producing at this level with the same manpower strength of about 2,700 is expected to increase productivity and enhance ASP's competitiveness in the long run,'' according to SAIL executives.

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