Bhilai Plant Earns Rs.27.81 Billion Profit

Bhilai plant earns Rs.27.81 billion profit

NewKerala.com, Raipur: Bhilai Steel Plant (BSP), India's largest public sector steel unit, has posted Rs.27.81 billion in net profit and a total turnover of Rs.112 billion in fiscal 2005-06.

"BSP, a unit of the state-owned Steel Authority of India Ltd (SAIL), earned Rs.27.8 billion net profit in 2005-06, despite fluctuating supplies of imported hard coking coal, sharp rise in input prices mainly in imported coal, steep hike in demurrage rates and sharp reduction in free time of wagons for loading," an official statement said Sunday.

The plant, located 30 km west of Chhattisgarh's capital Raipur, was also worst hit by "spiralling coal prices in 2005-06 because of higher percentage of imported coal in its blend", the release stated.

The plant has produced 5.178 million tonnes hot metal, 5.05 million tonnes of crude steel and 4.29 million tonnes of saleable steel in the last fiscal.

For the first time since its inception in 1959, the plant has crossed 5 MT production mark in hot metal as well as crude steel, becoming the country's only steel unit in both the public and private sector to achieve this feat.

Meanwhile, the state has urged New Delhi to allot the entire Rowghat iron ore mines to BSP.

The Rowghat mines, based in the state's Bastar district, are considered the future lifeline for BSP as the plant is running short of iron ore. Its current source - the Dalli Rajhara iron ire mines - 98 km from the plant, has stocks left hardly for five years.

SAIL claims that Rowghat has the world's best iron ore reserves that can feed the plant for at least 75 years. Rowghat is known to have iron ore deposits of over 550 MT.

"BSP is on top priority of the Chhattisgarh government. The state has recommended the Indian government last month to allot the entire Rowghat iron ore deposits to Bhilai Plant," Chief Minister Raman Singh said Saturday.