Production graph continues to rise for Durgapur Steel Plant (DSP) under Steel Authority of India Limited (SAIL). In a press release yesterday (December 5) DSP has reported 21 per cent growth in the production of special and value-added steel in November. Special and value-added steel constituted 81 per cent of the total saleable steel production during the month – which is a record in itself as well.
This increase in the production of special and value-added steel will boost the income of DSP and will help in achieving a higher profitability as well.
In the first eight months between April-November of 2013-14, Durgapur Steel Plant of SAIL recorded its best-ever output in categories of hot metal, crude steel, saleable steel, special and value-added steel, continuous casting and also in despatches.
Production in the wheel and axle unit, the only forged wheel producer in the country for the Indian Railways, witnessed a growth of 28 per cent during November. During the first eight months of the current financial year, the wheel and axle plant of DSP has improved its production by 25 per cent.
Currently DSP is undergoing through a modernization and expansion phase at an estimated cost of 2875 crores. After the completion of the ongoing modernisation and expansion programme, the capacity of DSP would enhance to 2.12 million tonnes of saleable steel from the current level of 1.60 MT, SAIL sources said. Also, Post expansion, DSP is expected to improve the finished component in its products basket from the present level of 36 per cent to 64 per cent.
However the area of concern remains about the completion of the ongoing modernization at DSP. The modernized units were projected to start production by the beginning of 2013. But the ground reality suggests that the new projects will be operational not before 2014.
In spite of the continuous rising trend in the production of the plant, there is a growing concern among DSP executives and non-executives that DSP under all likelihood will be the smallest units of SAIL in coming years.