KOLKATA: Durgapur Steel Plant (DSP) notched up a Rs. 200 crore net profit in the third quarter of 2006-07.

The profit for the first nine months topped Rs. 400 crore, which was 109 per cent higher than the Rs. 191 crore achieved during the first nine months of the previous fiscal.

DSP's turnover was Rs. 2,917 crore against Rs. 2,642 crore during the period under review. Crafting one of the most spectacular turnaround stories for its parent, Steel Authority of India, DSP continued to produce at substantially high levels consistently for the fourth consecutive month raising, hopes of ending the year with record production.

While much of the present performance is being attributed to a motivated workforce, sustaining it hinges on a slew of projects being implemented by DSP to improve its product mix and reduce costs.

The emphasis on special steel continued with the plant reporting higher special steel production and despatch.

DSP continues to operate at higher than the rated capacity levels continuously for over four months now. It maintained a better synergy with its sister SAIL plants.

Efforts to improve inspection and preventive maintenance coupled with providing requisite inputs and empowering people, have resulted in the plant's improved performance, sources said.

The introduction of an additional innovative rewards scheme, augmentation of employee welfare schemes and providing greater thrust on safety and house keeping have also helped DSP in posting record performance.

The plant's Managing Director, V. Shyamsundar, who has brought in substantial improvements inside the plant, explained that while the production of hot metal had attained record levels for the last four months, potential exists for greater output.

DSP, which at present has about 56 per cent semis in its product mix, has already initiated a process to install a seven lakh tonne bar and rod mill at an estimated cost of Rs. 738 crore. The mill will add the much needed variety in its product mix besides enhancing its finished component.

The plant is now finalising its roadmap to enhance its production to 3.2 million tonnes of hot metal and three million tonnes of crude steel as envisaged in the SAIL Corporate Plan scheduled to be completed by 2010.

It is also implementing projects that will help reduce production cost by nearly Rs. 1,000 a tonne.

Oxygen plant

Work on the 700 tonnes a day oxygen plant on build-own-operate (BOO) basis and coal dust injection in blast furnace No. 3 and 4 has already started while a few others are in the pipeline.

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