Bhilai expansion plan on track

Bhilai expansion plan on track
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First Published: Sun, Dec 14 2008. 11 35 PM IST
Updated: Sun, Dec 14 2008. 11 35 PM IST
New Delhi: Despite the contraction in the global demand and falling commodity prices, Bhilai Steel Plant, a unit of Steel PSU Steel Authority of India Limited, is on track for its expansion plan. The company’s present steel making capacity is 4mn tones and it is looking at increasing the same to 7.5 mn tonne by 2011-12. BSP is presently producing over its capacity. It touched 5 mn tonne last fiscal and has a target of touching 5.8 mn tonne this year. BSP reported a 5 % increase year on year in crude steel production between April and November 2008.
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BSP’s Executive Director, Finance T K Gupta, said that his company had been hit by the global downturn but he was confident of achieving revenue targets. It had a turnover of Rs 16,000 crore in fiscal 08 and a profit of Rs 5000.
BSP is the country’s sole producer of metal plates and rail tracks. A fact that has somewhat protected it from the same fate as other steel producers. “Steel prices have fallen but our rails have not been affected. We have a MOU with the railways for the same. Prices for other products have been affected somewhat,” said Gupta.
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First Published: Sun, Dec 14 2008. 11 35 PM IST