SAIL shareholders approve share buyback plan

KOLKATA: Shareholders of Steel Authority of India passed a special resolution at its 40th annual general meeting on Friday authorising the company to purchase, acquire or hold its own shares or other specified securities as per the applicable statutes. The shareholders also approved the company's decision to pay 20% of total dividend for the year FY'12.

Addressing shareholders chairman SAIL C S Verma, said: "" We have taken various initiatives in optimizing operations, better value addition in downstream units, reducing coke consumption by enhancing alternate fuels like Coal Dust Injection in blast furnaces etc.

He expressed confidence in the growth of the indian steel industry driven by the increased infrastructure investment and higher pace of urbanisation, despite the short term dampners facing the economy. "In terms of per capita consumption of finished steel, India at 57 kg lags behind the world average of 214.7 kg, indicating a huge potential for growth", Mr Verma said.

SAIL has planned a capex of Rs 12,000 crore for FY '13 after incurring a capital expenditure of Rs 11,021 crore in FY'12. Apprising shareholders on the status of modernisation & expansion, Mr Verma said adding that the completed new facilities include new Coke Oven Battery No.11 and Wire Rod Mill at IISCO Steel Plant, Sinter Plant No.3 & Coke Oven Battery No.6 at Rourkela Steel Plant and 700 tpd Air Separation Unit at Oxygen Plant-2 at Bhilai Steel Plant. SAIL's modernisation and expansion program being implemented at an expenditure of around Rs. 72,000 crores, besides targeting higher production, also addresses the need for eliminating technological obsolescence, achieving energy savings, enriching product-mix, reducing pollution and developing mines & collieries.