SAIL eyes Rs 43,000 cr sales in 2010-11

Steel Authority of India (SAIL), the country's second-biggest producer, expects to mop up Rs 43,000 crore from the sales of its products on rising demand.

"As per the Memorandum of Understanding (MoU) between the Steel Ministry and SAIL signed today, the gross sales projection for 2010-11 is Rs 43,000 crore, higher by 12 per cent against the MoU of 2009-10," a company official told PTI.

Also, the company expects a 5 per cent growth in saleable steel production in the next fiscal to 12.35 million tonnes, against 11.75 million tonnes estimated in 2009-10.

"The company plans to have a capacity utilisation of 112 per cent during 2010-11," the official added.

Besides projection of sales and production, as per the pact, the company has decided to spend a fixed sum on Research & Development, sustainability and Corporate Social Responsibility (CSR) schemes.

"Budget for CSR has been earmarked at 1.25 per cent of distributable profit for peripheral development, health care and new CSR initiatives," the official added.

The steel maker will be spending Rs 12,254 crore in the next financial year mainly to fund its mega expansion programme. It is undertaking a Rs 70,000-crore expansion plan to up its annual production capacity to about 23 million tonne (MT) by 2012 from the present 14 MT.