New Delhi, May 24: Steel Authority of India Ltd (Sail) chief executive Arvind Pande has advocated a 7 per cent hike in steel prices and sought direct and indirect governmental support for attaining a targeted Rs 300 crore profit in 1998-99.Pande said that it would be necessary to increase steel prices by 6 to 7 per cent to offset an additional burden of Rs 1,600 crore in 1998-99 on account of increase in input costs, wages and salaries, interest charges and depreciation. SAIL would be able to save about Rs 700 crore, same as last year, through its cost-saving measures, but it would need government support and price hike to cover the remaining gap.
Pande said SAIL was seeking government's approval for its capital restructuring for offsetting high cost borrowings and improving its credit worthiness.
Admitting that corporation was likely to record profits in the range of Rs 100 crore in 1997-98, Pande said, "We have signed a MoU y saying we will give profit of Rs 300 crore in 1998-99, provided SAIL isable to increase prices by six to seven per cent".
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
