RSP to produce at full blast by 1998-99
Sunil Mukhopadhyay
Rourkela, Jan 20: The recently-modernised Rourkela Steel Plant should be able to ramp up production to its full capacity of two million tonnes of hot metal by early 1998-99, according to Arvind Pande, chairman of Steel Authority of India Ltd."There has been a tremendous improvement visible in Rourkela in the last few months, particularly in December," Pande said here on TuesdayThe SAIL chief was on a two-day visit to take stock of the performance of the plant, which has been a cause of concern for SAIL's top brass as its modernised units are yet to stabilise fully. After a Rs 4,300-crore modernisation, RSP has an interest and depreciation burden of Rs 500 crore, according to sources. Pande visited several units at the plant, including the basic oxygen furnace, continuous casting mill 2, coke ovens, hot strip mill and plate mill. He said the improvement in all areas of performance offered eloquent testimony to the potential of RSP. Outlining the future thrust areas, Pande said the plant should strive
for 100 per cent production via the continuous casting route, and become the first SAIL unit to do so. Commenting on the market scenario, Pande pointed out that while steel consumption had dropped, supply had increased with the entry of new players. The increase in the price of coal, railway freight and power to the tune of around 45 per cnet over the last four years had hit SAIL's profitability. To survive and expand its marketshare in this scenario, SAIL would have to focus on quality and delivery schedules, and also make more of customised products, Pande said. He called upon RSP's employees to pay attention to evolving a turnaround strategy. The stress should be on turning out the right product mix of the right quality, increasing the share of value-added products. The benefits of the modernisation will be apparent if they opt for redeployment and re-training, he said.This strategy will put RSP back on the profit-making track in a couple of years, Pande said. He warned that there is no room for
complacency, and called upon employees to ask themselves if they were satisfied with the unit's performance. "The success of the plant depends on the answer to this question and the subsequent action by the Rourkela collective," Pande said. RSP managing director A K Singh echoed Pande's views. "I have told my collective that an extra bit of effort from each and every employee would lead to innovation and creativity, which would help in the turnaround of the plant," Singh said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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