Calcutta, July 7: The management of the Steel Authority of India ltd (SAIL) was concerned over the performance of the two of its integrated steel plants at Rourkela and Durgapur where the company had invested nearly Rs 10,000 crore for modernisation.

Sources in SAIL, one of the `navaratna' PSUs, said the plants had failed to live up to the expectation and the capacity utilisation was much lower.The matter also figured in the recent SAIL directors' workshop at Manali where it was said that the asset utilisation was a big problem in Rourkela and Durgapur Steel Plant. Managing directors of the two plants were asked to take initiatives to produce results much faster.

SAIL chairman Arvind Pande, during his visit here last week, also admitted that there was delay in getting benefits from investments made in the two plants.

Sources in the two plants said the technology was new and it took time to adopt it. Major training programmes were organised for the employees to get themselves adapted to the new technology.

The problems were identified in the two plants and now all new units were also commissioned. This year the company would get full benefits, Pande hoped. The SAIL management, however, agreed that Durgapur Steel Plant could not show higher profit margin because the plant even after massive modernisation, produced about 50 per cent semis. Proposals were placed for installing two finishing mills, a wire rode and a medium structural mill, for increasing profit from the plant.

Sources said that Rourkela Steel Plant might not make profit in the current financial year but the loss would come down.

Another factor which worried the SAIL authorities was the delay in commissioning the continuous casting and upgradation of the hot-strip mill at Bokaro Steel Plant, which also led to cost overrun.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.