There is a little bit of SAIL in everybody’s life.
TABLE OF CONTENT:
1. INTRODUCTION 10
2. GLOBAL SCENARIO 12
3. SALE :AN OBJECTIVE 18
4. VISION,CULTURE AND VALUES 23
5. DIFFERENT PLANTS AND UNITS OF SAIL 32
6. KUTESHWAR LIMESTONE MINES 55
8.1 EMPLOYEE MASTERS SLAB 68
8.2 DEDUCTION MASTER 69
8.3 TRANSACTION MASTER 70
9. SOME COMMON TERMINOLOGY 73
10. SWOT ANALYSIS OF THE INDUSTRY 76
11.ENVIRONMENTAL MANAGEMENT 77
12. COST PRODUCTION SHEETS OF LIMESTONE 88
13. COMPARISION OF TWO STEEL GIANTS 106
14. BIBLIOGRAPHY 108
Though Iron and steel have been sued by men
for almost 6000 years, yet the modern form of
iron and steel industry came into being only
during the 19th century. The growth and development of iron and steel industry in
the world until the second world war was comparatively slower. But the industry
has grown very rapidly after the second world war. World production of steel,
which was only 28.3 million tonnes (MT) in 1990, rose to 695 MT by 1992. The
oil crisis of the seventies affected the entire economy of the world including the
steel industry. The position started improving after 1983 and peaked at 780 MT in
1989. World steel production is around 1322 MT in 2007.
Historical Background :
There are evidence that man knew the use of iron since the acient civilization of
Babylon, Mexico, Egypt, China, India, Greece and Rome. Archeological findings
in Mesopotamia and Egypt have proved that iron or steel has been in the service of
mankind for nearly 6000 years. The origin of the methods used by early man for
extracting iron from its ores is unknown.
In early days the product probably was so relatively soft and unpredictable, that
bronze continued to be preferred for many tools and uwapons. Eventually iron
replace the non-ferrous metal for these purposes when man learned how to master
the difficult arts of smelting, forging, hardening and tempering iron.
Iron, in the beginning was smelted by charcoal made from wood. Later coal was
discovered as a great source of heat. Subsequently, it was converted into coke,
which was found to be ideal for smelting of iron. Iron kept its dominant place for
200 or more years after the saugas works that was the first successful iron works in
America founded in 1646. With the advance of Industrial Revolution, iron formed
the rails for the newly invented railroad trains. It was also used to armour the sides
of the fighting ships. About the mid-19th century the new age of steel began with
the invention of Bessemer process (1856) making steel available in large quantities
at reasonable cost.
Indian History :
Indian history is also replete with references to the usage of iron and steel. Some of
the ancient monuments like the famous iron pillar near New Delhi or the massive
beams used in the Sun Temple at Konark bear ample testimony to the
technological excellence of the Indian metallurgists.
The history of iron in India goes back to the ancient era. Our ancient literary
sources like Rig Veda, the Atharva Veda, the Puranas and other Epics are full of
references to iron and to its uses in peace and war. According to one of the studies,
iron has been produced in India for over 3000 years, in primitive, small scale
International steel sector is reflecting he global trends in business environment.
The early years of the 21st century have set the pattern for the future. Asia has
increased its share of production. Although consumption of steel is likely to
increase in most regions of the world in the medium term, growth in industrialized
nations is likely to be much slower than the average growth in demand across the
world. Developing countries and the emerging economies are likely to have the
fastest rate of growth in steel demand in the future.
In the developed world, the EU is expected to experience stagnat demand in the
medium term, while the NAFTA block is likely to see low positive growth in
consumption. In Japan, demand for steel has steadily declined in recent years due
to restrictions on Government spending in construction projects as well as weak
consumer demand. A modest growth is anticipated in the manufacturing and
building sectors as the economic performance improves. However, the medium
term projection is for a reduction in overall steel consumption in Japan.
Amongst the developing economies, China requires special mention. China’s
apparent consumption of finished steel during 1996 was 97 million tonnes, which
amounted to around 15% of world finished steel consumption. However, by the
year 2007, China’s consumption figure reached a staggering 310 million tonnes,
accounting for around 30% of the total world finished steel consumption. China’s
steel consumption is still growing at a fast pace and as per IISI estimates; the figure
may touch 650 million tonnes during 2008-09. The rapid rise in Chinese steel
consumption is attributed mainly to sterling economic growth and construction
activity in the build-up for the 2008 Olympics as well as the trade exposition
planned in 2010.
According to a preliminary medium term forecast by the IISI, finished steel
consumption in the world is expected to cross a billion tonnes by 2008. However,
despite the growth in consumption there are apprehension of excess production as
compared to global demand. AS per the estimates by the WSD, world crude steel
production, stands today more than 1 billion tonnes a year and is expected to cross
1,130 billion tonnes by 2010.
As the trend in the world is towards producing low cost steel by using more
environmental friendly means, steel producers worldwide are adopting new
technologies like Corex and Compact Strip Casting, adopting alternate routes like
Electric Arc Furnace instead of the traditional Blast Furnace-Basic Oxygen
Furnace route, as well as importing raw materials like coke.
Growth of Indian Steel Sector:
India is amongst the cheapest producers of hot metal in the world. The cost
advantage mainly arises from the abundant availability of cheap and good quality
iron ore. Besides, overall manpower cost is also low. However, these advantages
are nullified to some extent due to low labour productivity, high energy & power
costs and high finance charges. The expansion plans of steel majors are likely to
put tremendous pressure on the availability of inputs and infrastructure resources
within the country. The nation is endowed with large iron ore reserves, but their
development and exploitation would require huge resources. Besides, the effects
on the environment where virgin areas are beig exploited needs to be addressed.
Availability of coking coal is expected to remain a serious constraint. Coking coal
supplies from public sector coal companies have been declining over the ears,
leading to higher imports. Traditional coking coal and coke suppliers such as China
have also curtailed exports in order to feed their expanding iron & steel industry.
The steel industry needs to remain competitive by improving efficiency across the
entire value chain in an integrated manner. Hence, logistics would be an important
area of concern for the steel industry. This involves development of ports,
smoother transportation to and from ports, rationalization of inland freight charges
as well as better road movement facilities. During the early 1990s, the sponge iron
industry was especially promoted to provide an alternative matrial to steel melting
scrap, which at that time was increasingly becoming scarce. Since then India has
emerged as one of the largest producer of sponge Iron. This provides good
opportunities to steel industry as a substitute of scrap.
Considering the erratic power supply position in the country as well as high power
tariffs, rising scrap prices and plentiful indigenous iron ore reserves would mean
that the most suitable steel making technology for India would be the integrated
Outlook for the Indian Economy:
After witnessing rapid strides during the years after the liberalization process was
set in Motino, India’s GDP grew at an average rate of 5.2% during the period
1998-99 to 2002-03. However, there was a break from the trend n 2003-04, during
which the economy is estimated to have grown at more than 8%. The economy is
expected to continue on a high growth path with continued macroeconomic
Over the years there has been a downward trend in interest rates accompanied by
moderate inflation and adequate liquidity in the economy. Infrastructure
development has been a focus area for the Govt. in recent years. In the road and
highway network, India is witnessing development of multiple-lane, safe and well
designed inter state highways. Recently the Govt. has announced a planned outlay
for the rural road and highway network development.
The Golden Quadrilateral project is an ambitious project that would connect the
four major metros via state of art highways. The East-West and North-South
corridors would link up the remotest parts of the country. The government is also
planning to facilitate investment in sea-ports and airports in a major way.
Concessions in the form of tax rebates etc. to boost investmet in the housing sector,
as well as falling interest rates have made available cheap home finance loans and
have given a thrust to the housing sector. A rise in depreciation rates for vehicles,
excise duty reduction and low interst rates has given a major boost to the
automobile sector. From a negative production growth rate of 2% during 2000-0,
the automobile sector has recorded a growth of 18% during 2002-03 and 15%
during 2003-04. The capital goods sector which had shown a declining trend from
the year 1998-99, came back strongly during 2002-03, growing at the rate of
10.6%. The strong frowth of the capital goodssector has continued in 2003-04.
Given the strong fundamentals and stability in key macro economic aggregates, the
average GDP growth during the year 2004-05 to 2007-08 is about 8%.
Steel Demand in India
The steel industry in India is poised for faster growth in the decade ahead as the
industrial and economic development of the country gains pace. What however
cannot be ignored is that increasing emphasis on globalization and liberalization
will closely link the fortunes of the Indian steel industry to the global market. The
domestic outlook for finished steel has been estimated as follows :
Domestic Market growth Outlook
Growth Trajectory 2006-07 (Million tonnes) 2011-12 (Million tonnes)
GDP @ 6.5% 39.5-40.7 57.8 – 59.9
The total steel consumption of finished steel in India has been estimated to touch
60 million tones from the current level of over 40 million tonnes. It is important to
note that despite the near doubling of the consumption level in the country, per
capita domestic consumption would continue to be substantially below the world
average, which is about 145 kg.
Amongst the steel consuming segments, transportation of petroleum products,
household appliances, and automobiles are expected to have the fast growth.
However, even a modest growth of 4.4% growth in the construction sector will
translate into a large increase in actual consumption volumes. Thus, construction
will contribute towards a high proportion of incremental demand in future.
Projected Consumption Growth of Finished Steel in Major Domestic Segments
Segment 2006-07 2011-12
Construction 4.9% 4.4%
Fabrication 5.5% 4.9%
Automobile 6.7% 6.0%
Transportation of Petroleum Products 21.6% 19.4%
Tube making 4.2% 3.8%
Household appliances 7.9% 7.9%
While the overall growth in domestic steel consumption is expected to be in the
vicinity of 8%, the demand for flat products is expected to rise more sharply as
compared to longs. A broad category-wise projection of growth in finished steel
projection, with the year 1999-00 as base depicts the following picture;
Category wise Growth in Domestic Steel Consumption
Product 2006-07 2011-12
Total non-Flat 5.9% 5.7%
Total Flats 8.5% 9.4%
Total Finished 7.3% 7.9%
SAIL : AN OBJECTIVE
Formation of Hindustan Steel Limited:
When the government of India decided to enter into the field of Iron and Steel
production, it broadly envisaged not to run the firm as a departmental undertaking.
Altough initially steel project administration was directly under a Ministry of the
Central Government, Hindustan Steel was formed as a Limited Company, with
President of India owning the shares on behalf of the people of India. Thus
Hindustan Steel Limited was set up on January 19, 1954.
Growth of Hindustan Steel Limited (1959-1973):
To start with, Hindustan Steel was designed to manage with only one plant that
was comig up at Rourkela. For Bhilai & Durgapur plants, the preliminary work
was done by Officials in Iron and Steel Ministry. From April 1957, the supervision
and control of the Bhilai & Durgapur Plants were also transferred to Hindustan
Steel. The registered office was originally in New Delhi, moved to Calcutta in July
1956 and ultimately shifted to Ranchi in December 1959. Initially Bokaro Project
was also under HSL.
A new steel company Bokaro Steel Limited was incorporated in January 1964 to
construct and operate the steel plant at Bokaro. The 1 MT phase of Bhilai and
Rourkela Steel Plants were completed by end of December 1961. The 1 MT phase
of Durgapur was completed in January 1962 after commissioning of wheel and
axle plant. As a result, the crude steel production of HSL went up form 158
thousand tonnes (in 1959-60) to 1.6 MT (in 1961-62). 2.5 MT phase of Bhilai was
completed on 2nd September, 1967 after Commissioning of Wire Rod Mill. The last
unit of 1.8 M phase of Rourkela was Tandem Mill commissioned on 17 th February,
1968 and 1.6 MT phase of Durgapur was completed on 6 th August 1969 after
commissioning of furnace in SMS. Thus, with the completion of 2.5 MT stage in
Bhilai, 1.8 MT in Rourkela and 1.6 MT phase of Durgapur, the total rude Steel
output from HSL was raised to 3.7 MT in 1968-69 and 4 MT in 1972-73.
Formation of Steel Authority of India Limited (SAIL):
The committee of public undertaking of the Fifth Lok Sabha was the first
Parliamentary Committee to undertake a significant review of the question f setting
up a Holding Company for steel. It was first considered in the Department of Steel
in 1971 with the following two objectives :
Rapid growth of the industrial sector, of the economy, of the state as a leading
agent of the growth process and
Ability of the Government to divert investment into areas which are strategic from
the point of view of future development.
In this context, it was recognized that the Public Sector had to be made more
efficient in order that it might be able to contribute far more than it had to the
common pool of investible surplus in the economy.
Further, such a holding company could perform a number of other important
functions like coordination and control f constituent units, planning long term
programmes, introduction of necessary technological changes, setting up of an R &
D organization and training of managerial personnel for the Public Sector as a
Based on the above considerations, the proposal to set up a holding company for
steel and associated input industries was approved by the Government in January
1972. Accordingly, the formation of steel Authority of India Limited was approved
by the Government in December, 1972. The company was incorporated on January
24, 1973 with an authorised capital of Rs. 2,000 crores. In 1978 SAIL was
restructured as an operating company.
Present Status of SAIL:
Steel Authority of India Limited (SAIL) through its five integrated steel plants at
Bhilai, Bokaro, Burnpur, Durgapur and Roukela accounts for major steel
production capacity of India.
Three special steel plants at Bhadravati, Durgapur and Salem produce a wide range
of special steels, special alloy steels and stainless steel.
MEL, chandrapur a subsidiary company, is one of the largest producers of bulk
Ferro Alloys in the country. There is a proposal to merge it with SAIL. Today,
SAIL is one of the largest corporate entities. Its innate strength lies in its
technologists and professionals and a trained manpower of over 1.34 lakh
including subsidiary. It had a sales turnover of over Rs. 45,555 crores during 2007-
Product Mix of SAIL Plants:
Facilities/Pro1duct Bhilai Bokaro Durgapur Rourkela IISCO
1.Hot Metal 4080 4585 2100 2000 670
2.Crude/Liquid Steel 4000 4500 900 1840 380
3. Saleable Steel
a. Semi for Sale 553 1000 12
b. Finished Steel
i) Flat Product
Wide Heavy Plates 950 325
HR Sheets, Coil & 2120 876
CR Coils/Strip/Sheets 1390 220
Electrolytic Tin 60
Galvanised 170 180
Silicon Steel 75
ER W pipes 45
Spiral Welded pipes 55
Special Steel Plates 3
Sub Total (i) 950 3780 220 1845
ii) Non Flat Product
Structural 250 180 166
Merchant Products 500 325 111
Wire Rods 400
Wheels & Axles 30
Special Sections 16
Sub Total (ii) 1650 545 293
Total Saleable Steel 3150 3780 1755 1845 305
Vision, Culture and Core Values
I an organization Mission/Vision leads to strategies. The long-term strategy
leads to system and structures. To have the right system and structure, culture
should be good. For work culture to be conducive each member in organization
should have same values and exhibit norms of behavriour in line with culture and
Vision depicts the aspirations of an organization and gives substance to its
existence. It defines boundaries for action and sets strategic direction for the
organization. It can be compared to a beacon. Or it may be thought of as
functioning like a lighthouse for a ship. However, vision is always at a distance,
beckoning the organization to move towards it. It may never be achieved but must
always be in sight. For example, if the vision of an organization is to be kenown
for its product quality, it is not that the vision will be achieved for all times to
come and nothing more need be done. It may so happen that once the organization
achieves a given quality standard, it would find competitors providing same or
better quality, or the customers having got used to this quality would be demanding
still better quality for more sophisticated end use. The vision, thus, keeps on
receding, as you appear to approach it and, in the process, continuously guides the
efforts of the organization.
Customer is seen to provide context for all our endeavours. The vision of SAIL has
been evolved with this reality in mind. SAIL Vision has been articulated in the
Directors’ workshop at Jodhpur. The SAIL vision takes into account the realities of
the environment and articulates the core concern of the organization.
The most general sense “Culture” could mean a ‘way of life’. Organization culture
refers to the traditions, attitudes, beliefs and practices followed in an organization
by the constituent members. However, culture by itself cannot be observed. It can
only be reflected I the observed behaviour of the employees- behaviour towards
other employees, towards the customers, towards outsiders and most importantly,
behaviour towards ones’ job.
For an organization to have a distinct culture, it is necessary that members of the
organization behave in a given way in response to various stimuli every time. An
organization should put emphasis on culture being collective, consistent behaviour
or habit. Only a few employees acting in a particular fashion some of the times
does not make that behaviour the culture of any organization. It has to be
manifested in the behaviour of most of the employees at most of the times, i.e., it
has to become a collective habit. Behaviour is determined by the values prevailing
in the organization. Therefore, to inculcate desired behaviour, it is necessary to
cultivate a right set of culture. Culture consists of the organization’s core values,
norms, attitudes and beliefs. These influence the employees to determine the
behavioural patterns which have to be consistent over time. The collective
behaviour, in turn, defines the culture of the organization.
SAIL has observed that some of the strategies have been implemented well
whereas some others have not been implemented at all. Again, some of the
strategies have been implemented well in a department in a unit whereas the
implementation in other departments of the same unit has left a lot to be desired.
For example, implementation of the Internal customer satisfaction model,
adherence to SOPs, ISO certification, etc., are all strategies and system which have
been implemented with differing levels of sincerity and success. The reason for
this may be the prevalent culture particular to that unit or department. To
understand the prevailing culture and employee perceptions on various aspects of
culture, a study was undertaken across the organisation.
These are the areas of major concern because resistance to change will be great in
these areas. This is because if an individual or a collective feels that the
performance in this field is already good, there will be no effort on their part of
change. One should remember that in the final reckoning, it is the customer and not
the employee who will measure customer satisfaction. It is important to undertake
periodic reviews of the prevailing culture to ensure congruence between the
existing culture and the requirements of the business environment. It may,
therefore, be necessary to define and then cultivate a desired culture.
Consistent with company’s vision, goals and strategies, SAIL adopted the
following four core values in 1995 :
1. Customer satisfaction
2. Concern for people
3. Consistent profitability
4. Commitment to excellence
The meaning, rational and thrust of each of these core values s presented
Customer Satisfaction : Customer comes first every time.
Customer satisfaction is the first priority of every employee and the purpose of
We do not compromise this value because w believe that this alone can enable us
to achieve the vision of attaining market leadership.
Concern for people : Talent of our people is our greatest asset.
We believe that developing competence and commitment of our people for
enhancing their contribution, is important for achieving customer satisfaction, and
thereby the prosperity of the company and of the employees.
Consistent profitability : Consistent profitability is essential for growth :
We believe that consistent and significant profitability must be essential outcome
of all our activities. This is necessary for modernisation, growth and market
Commitment to Excellence : SAIL does it better.
We are committed to harnessing the full potential of all our resources, through
creativity, continuous improvements and teamwork. We believe that this is
important for making SAIL the best organization so that our customers, employees
and shareholders have a sense of pride.
Norms of Behaviour
The behaviour of everyone should reflect priority to the core value of customer
satisfaction in relation to all other core values. Since our vision is to achieve
market leadership through customer satisfaction, it is critical to establish and
nourish all those behaviour, which we directly or indirectly contribute towards
enhancing level of satisfaction of our customers on a continuing basis.
Some examples of core values are given below :
(a) Customer Satisfaction
a. Order booking should be communicated to production planning and
control (PPC) on the same day by the marketing branches.
b. The PPC should start with quality and delivery commitment to
(b) Concern for people
a. Concern for safety and health of our employees and quality of their
worklife should always guide all our decision and actions.
b. Every manager must communicate core-values both by words and
actions behavioural deviations reflecting non-adherence to core values
must be discouraged.
(c) Consistent Profitability
a. Since only those actions which
b. We must use all resources optimally and avoid the tendency of asking
and giving more resources.
(d) Commitment to excellence
a. Rated capacity should be considered the minimum benchmark rather
than the maximum limit.
Besides measuring performance against past performance level and the target,
performance should also be evaluated against the potential to ensure 100%
achievement of potential in due courses.
The strategy for SAIL evolves from its Vision statement :
“To be a respected world-class corporation and the leader in Indian steel
business in quality, productivity, profitability and customer satisfaction.”
We build lasting relationship with customers based on trust and mutual
We uphold highest ethical standards in conduct of our business.
We create and nature a culture that supports flexibility, learning and is
proactive to change.
We chart a challenging career for employees with opportunities for
advancement and rewards.
We value the opportunity and responsibility to make a meaningful difference
in people’s lives.
Keeping in mind the vision and credo, the following strategic goals have
been defined for the corporate plan:
To continue in the business of steel and steel related activities
To enhance market share in growth segments
To improve profits by productivity improvements cost reduction, high vale
added products and customer satisfaction
To achieve excellence in quality across the value chain
To secure availability of key raw materials and alleviate infrastructure
bottleneck which may constrain log term growth.
To realize strategic goals, strategic option of growth, cost and quality have
been detailed. Unit and Functional Strategies, in turn will support these.
Further, in light of increasing competition and sophistication of the user
segment, the Corporate Plan envisages enrichment of product-mix, including
development of new products. These decisions will be based on the growth
of consuming segments and competitors analysis.
Corporate Plan 2012 :
Considering the factors like core strength, likely growth in steel business and
higher risk in un-related diversification, the appropriate strategy for SAIL would
be to remain focused in steel and steel related business.
The following are the broad production levels planned to be achieved :
Production (MT) Actual in 2003-04 Actual in 2007-08 Projection for
Hot Metal 12.75 15.2 26
Crude Steel 11.83 14.0 24.5
Saleable Steel 10,73 13.0 23
The corporate plan is designed to increase the hot metal production to about 20
million tonnes per annum against the current level of 13 million tonnes per annum
from SAIL plants. This would happen through the optimal utilization of assets
coupled with marginal capacity expansion, thereby enhancing SAIL’s market share
to about 27%, under the projection that domestic consumption of finished steel
would be about 60 million tonnes by 2011-12.
Corporate Plan 2012 has also considered the market growth projections assuming
overall steel consumption at about 8% per annum. However, the growth trends and
macro economic indicators could lead to higher growth potential. Therefore,
depending on the market growth, strategies of competitors, global economic
scenario, government policies and resource availability, SAIL’s plans may be
revised from time to time, and further growth in terms of volume, products etc.
may be aimed through green-field investments, acquisitions/mergers etc.
DIFFERENT PLANTS & UNITS OF SAIL
Bhilai Steel Plant (BSP):
An agreement was signed in New Delhi on February 2, 1955 between the
Government of India and Soviet Union to set up an integrated steel plant at Bhilai
with a capacity of 1 MT of ingot steel. The plant began its operation of January 31,
1959 when coke battery No. 1 was commissioned. Production of Pig Iron at Bhilai
began on February 4, 1959 when Blast Furnace NO. 1 was commissioned.
Situated in Chhattishgarh, this was one of the three 1 MT capacity crude steel
plants set up in the Public Sector in the late fifties. Subsequently it was expanded
to 2.5 MT ingot capacity, and currently expanded to 4.0 MT with this, the saleable
steel capacity increased from 1,965 MT (2.5 MT stage) to 3,153 MT (4.0 MT
The plant was the first in India to produce wide (3600 mm) heavy plates. A major
exporter of steel products. Bhilai specialises in shaped products, such as heavy
rails, heavy structurals, merchant products and wire rods. Almost all units in this
integrated steel plant are armed with ISO : 9001 certification. Plate Mill and Dalli
Mechanised Mine of Bhilai Steel Plant have received the ISO : 14000 certification
for its Environment Management System.
Product Mix Tonnes/Annum
Heavy Structurals 250,000
Merchant Products 500,000
Wire rods 400,000
Total Saleable Steel 3,153,000
Rourkela Steel Plant (RSP):
RSP was the first of the three steel plants taken up in the
Public Sector. On December 31, 1953, an agreement was
made between the Government of India and a consortium consisting of Thyseen
and Demag, Aktiengeselischaft, Duisbrg to set p a steel plat of initial capacity of
0.5 MT subsequently a supplementary agreement was signed in July 1955 to set up
a 1 MT plant. The Coke Oven Battery No. 1 was commissioned on 3 rd December,
1958 and the first of the three blast Furnaces was commissioned on 3 rd February,
1959. A major producer of diversified range of sophisticated steel products, RSP is
an integral part of the Steel Authority of India Limited (SAIL) and is among
India’s few plants producing.
100% of the steel through the globally profuse continuous casting route since 1998.
RSP is the only plant having pipe plants. The plant has recently undergone
modernization up-gradation in two phase involving around Rs 500 crores. The
modernization process of RSP started in 1988. The phase – I of modernization
completed in 1994 and Phase – II modernization completed in 1997-98. After
modernization, the capacity got augmented to 2 MT of hot metal and 1.9 MTs of
Crude steel. Modernized units include; one bedding and blending plant, sintering
Plant – II, steel melting shop – II, Tonnage Oxygen Plant – II etc. The details of
which have been given later. RSP is geared up producing defence and space
quality plates through a Special Plate Plant.
Situated in Orissa, it was the first integrated steel plant in India designed to
produce only flat products and the first in Asia to introduce basic oxygen furnace
(BOF) process at a time when this process was yet to receive recognition from the
established steel producers at home and abroad. The plant produces a wide range
of flat steel products like plates, hot and cold rolled coils and sheets, galvanized
sheets, electrical steel sheets, electrolytic tin-plates and large diameter electric
resistance welded (ERW) and spiral welded (SW) pipes. The plant as expanded in
the late sixties (1965-68) from 1.0 MT to 1.8 MT per annum ingot steel capacity.
Continuous technological innovation has led to greater diversification in this
plant’s product range. The new units for producing cold rolled non-grain oriented
(CRNO) sheets, cold rolled grain oriented (CRGO) sheets has been commissioned
to meet the market needs.
In Blast Furnace, Steel Melting shop – I and II, Continuous Casting Shop I,
Oxygen Plants – I & II, Hot strip Mill, ERW and SW Pipe Plants, Galvanising
Lines and Silicon Steel shop, Mechanical Shop, Repair shop (electrical), Air-
Conditioning, Roll Shop, Loco Repair Shop, Field Machinery (Maint), Sintering
Plant – II are accredited with ISO 9001 certification. The Silicon Steel Mill,
Sintering Plant II and Environment Engineering Department have been accredited
with ISO 1400 certification for its Environment Management System.
Product – Mix Tonnes/Annum
Plate Mill Plates 299,000
HR Plates 92,500
HR Coils 398,000
ERW Pipes 75,000
SW Pipes 55,000
CR Sheets and Coils 433,000
Galvanized Sheets (GP & GC) 160,000
Electrolytic Tin Plates 85,000
Silicon Steel Sheets (CRNO) 73,500
Total Saleable Steel 1,671,000
Durgapur Steel Plant (DSP):
Set up with an initial annual capacity of 1 million tonnes of ingot steel, DSP was
later expanded to 1.5 million tonnes and further expanded to 1.876 MT. Among the
various products rolled out are medium structural, merchant products, skelp and
continuously cast billets. A new product-extra high strength thermo mechanically
treated (TMT) bar has been successfully developed and marketed. Besides these, it
is a major producer of railway products like forged wheels and axles, sleepers and
With the completion of the massive modernisation programme, DSP is in
possession of state of the art technology for quality steel making, stabilisation of
the modernised units has brought about improved productivity, substantial
improvement in energy consumption and better quality products. The entire
production departments, major service departments and common function
departments are covered by the ISO 9001:2000 Quality Assurance Certificate.
Product –Mix Tonnes/Annum
Merchant Products 280,000
Wheels and Axles 58,000
Total Saleable Steel 1,586,000
Bokaro Steel Plant (BSL):
Bokaro Steel Plant ‘brings out before one’s eyes the vision of a massive giant in
the making. As the fourth steel plant in the Public sector, conceived in 1959, it
actually started taking shape in 1965 with the signing of an agreement with the
government of USSR on 25 January, 1965. Envisaging a capacity of 1.7 MT in 1 st
Stage and 4.0 MT In 2nd stage, its construction started on 6th April, 1968.
Bokaro Steel plant was originally incorporated as a limited company on 29 th
January, 1964. After the formation of SAIL in 1973, it became a wholly owned
subsidiary of SAIL and on 1st May 1978 it was eventually merged with SAIL I
terms of Public Sector Iron and Steel Companies(restructuring) and Miscellaneous
Provision Act 1978.
The plant was conceived as the country’s first ‘swadeshi’ steel plant, to be built
with maximum indigenisation going into the equipments, materials and know-how.
Thus, this project has been a radical shift form the earlier dependence on foreign
sources of now-how and consultancy, design and equipment, engineering,
supervision and erection to almost a full measure of self00reliance and confidence.
Boakro Steel first phase of 1.7 MT commenced on 2nd October, 1972 with the
commissioning of 1st Blast furnace and completed on 26th February, 1978 with the
commissioning of 3rd Blast Furnace.
After modernisation, BSL’s Liquid Steel output is rated at 4.5 MT ad Saleable
Steel production capacity is 3.78 MT per annum.
Boakro is geared to provide a sure and strong raw material base for a host of
modern engineering industries like motor vehicles, pipes and tubes, cold rolling
units, barrel and drum making and latterly, LPG cylinders. Galvanized plain and
corrugated sheets are finding use in industrial and domestic applications. The black
plates (being imported earlier) are helping in conserving scarce foreign exchange.
The industries which are served by Bokaro are not only essential for economic
development but also for raising the standard of living of the people in the country.
The plant has taken up modernization with a view to introducing continuous
casting facilities and updating the hot strip mill, a major step towards providing the
state of the art technology for producing quality steel at International Standards. A
range of special steel products like SAIL, COR, SAIL Prof, SAIL MEDS, SAIL
RIM, API Grade Steel, HRVO, WICR, DMR 249 ‘A’ Grade Steel,
E460/E500/E550, etc. have been introduced after modernization in the Plant.
HR Coils, HR Plates and HR Sheets 2,120,000
CR Coils and Sheets 1,390,000
GP/GC Sheets 170,000
Tin Mill Black Plates 100,000
Total Saleable Steel 3,780,000
IISCO Steel Plant (ISP), Burnpur :
The erstwhile Indian Iron and Steel Company (IISCO), oe of the oldest steel plants
of the country has been amalgamated with India’s largest steel maker, Steel
Authority of India Limited (SAIL) with effect from 16th February, 2006. Following
merger, IISCO has now been renamed as IISCO Steel Plant (ISP). The plant is all
set to achieve new milestones implementing its growth plan in tune with SAIL’s
Corporate Plan 2011-12. Plans are already approved to invest around Rs. 8,000
crore for technological upgradation of the IISCO Steel Plant and its Collieries.
ISP’s annual hot metal production capacity is envisaged to go up to 2.5 million
tonnes (MT) by 2011-12 from a level of 0.35 MT in 2004-05. The appointed date
of amalgamation is 1st April, 2005. The plant which was earlier written off is now
being written about. The sportlight is now on ISP, the fifth integrated steel plant of
ISP, one of he oldest integrated steel plants, started production of iron away back
in 1870 in its Kulti Works of Bengal Iron Works Company. ISP’s Burnpur works
was incorporated on 11th March, 1918, started iron making in 1922 nd steel making
in 1939. In the late 1950’s, it expanded further to become a million tonnes steel
ISP has got an integrated steel plant at Burnpur, Captive collieries at Chasnalla,
Jitpur and Ramnagore. It produces a wide range of products, starting from pig iron
to finished steel products, mainly heavy, medium and light structural and special
sections. ISP has pioneered the production of centre-still Z section used in the
production of wagons and Z-type sheet pilling section used in construction of
barrages, bridges foundations and other projects and colliery arch section used for
roof support in collieries. The plant has also developed ‘slit rolling’ for small
diameter rounds (12mm and 16mm TMT). Its merchant & rod mill is equipped
with ISO : 9001:9002. It has started production of TMT Rebars (product range –
16mm to 32 mm) since May, 2001.
Product Mix Tonnes/Annum
Structurals and rails 1,60,000
Bars and Rods 1,12,000
Special Section 11,000
Semis for sale 14,000
Saleable Steel 2,97,000
Total Saleable Steel 3,51,000
Pig Iron 3,32,000
Alloy Steel Plant (ASP):
The pioneer in the production of Alloy and special steels, Alloy Steels Plant (ASP),
Durgapur was commissioned with an initial capacity of 1,00,000 tonnes of ingot
steel and 60,000 tonnes of saleable steel. Through two phases of expansion and
modernisation, the capacity has bn revised to 2,46 lakh tonnes of liquid steel and
1.78 lakh tonnes of saleable steel from SMS – I
Recipient of ISO 9001 certification for the entire plant, ASP is equipped with
State-of-the art Technology for producing world class quality alloy and special
steels. The plant has one slab-cum-twin bloom continuous casting machine, the oly
one of its kind in India. It is specially designed for casting special steels like
Austenitic and Ferritic stainless steel and a variety of non-stainless steels including
bullet-proof steel. ASP has the capacity to produce slabs, Blooms, Bars, Plates and
Forged items of over 400 grades in a wide range of sizes.
It also produces value added items like CRM rolls, concast rollers, crans wheels,
springs, hammers, grate bars, hot saw balde, shear blade, bright bar, stainless steel
liner plate, etc. ASP is also supplying import substitution item components to
many customers through established conversion agents.
Salem Steel Plant (SSP):
Salem Steel Plant (SSP), is a premier producer of international quality stainless
steel in India. Commissioned in 1981, the plant has a capacity to roll 1,86,000
tonnes of hot roled carbon and stainless steel flat products and 70,000 tonnes of
cold rolled stainless steel sheets and coils per annum. The plant has gone beyond
its designed capacity and successfully cold rolled value-added 0.13 mm thick
stainless steel. SSP can also supply hot rolled carbon steel in 1.5, 1.4 and 1.25 mm
thickness range. Its products have become a household name ‘Salem Stainless’ in
the domestic market and are widely exported besides meeting the requirements of
100 percent export oriented units and free-trade zones in India. In hot rolled special
grade carbon steels, SSP has been recognized as a well known manufacturer of
boiler quality steel. The plant is also supplying LPG grade IS 6240 steel in sheet
form. The entire Plant is certified for the ISO 9001 quality Assurance and the ISO
14001 Environmental Management System.
Blanking line, the first of its kid in India, was established in 1993 with an annual
capacity to produce 3000 tonnes of ferritic grade coin blanks or 3600 tonnes of
utility blanks. Coinage of Rs. 1.50 paise and 25 paise denominations are minted
from the blanks supplied by SSP to Government Mint in Noida, Mumbai, Kolkata
SSP has revolutionized application of stainless steel in India both in conventional
and unconventional areas. High-tech industries like atomic power stations prefer
‘salem stainless’. It is also chosen in industrial sectors like dairy ad food
processing, chemical and fertilizer, heavy engineering, railways, automobile, bulk
solid handling, power etc. The building and architecture segment, which is
growing at a raid pace, sees ‘salem stailess’ as the most dependable companion.
SSP undertakes turnkey projects like fabrication and supply of stainless steel tubes,
pipes for sugar and chemical industry and for water pipelines. Under conversion
scheme, value-added products like kitchen and tableware and doorframes are
manufactured and supplied in bulk to corporate. SSP has also developed new
applications of its products viz. LPG tanks for automobiles, stainless steel ceiling
fans,exhaust fans, corrugated sheets, water tanks, etc.
In architecture, building and construction, the prestigious structures where ‘salem
statinless’ was chosen include the parliament house library complex, new Delhi,
the world’s tallest patronas twin towers, Malaysia and the retractable roofing at
Melbourne Tennis Stadium, Australia. The coaches of he high-speed Jan Shatabdi
Express train are furnished with modular railmarts and sub-pantries made entirely
of salem stainless. Korean blue resin coated corrugated curved roofing of the
Koparkhairnance Railway Station in Navi Mumbai is a trend setter for railways in
Visvesvaraya Iron and Steel Plant (VISP):
Visvesvaraya Iron & Steel Plant (VISP) is a pioneer in production of high quality
alloy and special steels and pig iron. Steel is produced through BF-BOF-LRF-VD
route. The facilities include vacuum degassing, vacuum oxygen-decarburisation,
Ladle refining furnaces, continuous casting machine, 1600 tonnes-hydraulic-high-
speed forging press, a fully automatic horizontal long forging machine with
numerical control system for a semi-automatic and automatic mode of operation.
VISP has an installed capacity of 77,000 tonnes of alloy and special steels and
205,000 tonnes of hot metal.
VISP has received the ISO : 9002 certificate for steel production through rolled
and forged routes and pig iron production.
Maharashtra Elektrosmelt Limited (MEL):
Maharashra Elektrosmet Limited (MEL) besides being he largest producer of
manganese based ferro-alloys in the country with a capacity to produce 100,000
tonnes of ferro-alloys, has emerged as a leader and trend-setter in technology
development. A fast changeover from High Carbon Ferr Manganese to silicon
manganese and vice-versa in the submerged Arc furnaces, production of medum
carbon and low carbon ferro manganese through Electric Arch furnances, sintering
of manganese one fines through Conventional and high pressure sintering process,
generation of 4.2 MW electric power by gainfully utilising ferro-alloys furnace
gases and production of building bricks from ferro-alloy slags are some of MEL’s
major technological achievements. Its ferro-alloys route has received ISO
Ministry of Steel has accepted the recommendations of expert committee on
merger of MEL in SAIL. Both SAIL and MEL boards have approved the merger in
principle and enabling activities for merger are in progress.
RAW MATERIAL HANDLING PLANT
Raw Material Handling Plant or Ore Handling Plant or Ore Bedding and Blending
Plant plays a very important role in an Integrated Steel Plant. It is the starting point
of an integrated steel plant, where all kinds of raw materials required for iron
making/steel making are handled in a systematic manner, e.g., unloading, stacking,
screening, crushing, bedding, blending, reclamation, etc.
Different types of major raw materials used in an integrated steel plant are :
Ferro and Silico manganese
Quartzite and Coal
For Blast Furnance route Iron making the main raw materials required are :
Iron Ore lump
Blast furnance grade lime stone
Blast furnance grade dolomite
The Main objective of raw material handling plant/ore handling plant/ore bedding
and blending plant is to:-
Homogenize materials from different sources by means of blending
Supply consistent quality raw materials un-interruptedly to different
Maintain buffer stock and
Unloading of wagons/rakes within specified time norm
Raw material preparation (like crushing, screening etc.)
Different types of raw materials such as iron ore lump, iron ore fines, limestone,
dolomite, manganese ore, etc., are supplied by SAIL mines (Raw materials
division, SAIL) or purchased from outside parties.
Different Raw Materials and their sources :
Sl.No. Raw Materials Sources
1. Iron Ore Lumps (IOL) Barsua, Kalta, Kiriburu,
Manoharpur, Gua, Dalli,
2. Iron Ore Fines (IOF) Manoharpur, Gua, Dalli,
RAjhara, Barsua, Kalta,
3. BF grade Lime stone Kuteshwar,
4. BF grade Dolomite Birmitrapur, Sonakhan,
Birsa Stone Lime
5. SMS grade Lime stone Jaiselmer
6. SMS grade Dolomite Belha, Baraduar
7. Manganese Ore Barjamunda, MOIL
8. Mixed Breeze Coke Generated inside the
plant (Blast Furnace &
9. Mill Scale Generated inside the
10. Flue dust Generated inside the
11. LD Slag Generated inside the
Right quality raw material is basic requirement to achieve maximum output
at lowest operating cost. Quality of raw materials plays a very important and vital
role in entire steel plant operation. Quality of raw materials (incoming) and
processed material (outgoing) is monitored by checking the incremental samples
collected from the whole consignment samples are collected at Auto sampling Unit
or sampling unit. The samples prepared after quarter and coning method are sent
for further analysis.
Quality Requirement of Raw Materials
Sl.No. Material Chemical Physical
1. IOL Fe SiO2 Al2O3 -10mm = 5%
64% 2.5% 2.5% +40 mm = 5 %
2. IOF Fe SiO2 Al2O3 +10mm = 5%
64% 2.5% 2.5% -1 mm = 30 %
3. Lime Stone Ti CaO MgO SiO2 -5mm = 5% Max
6% 45% 3% 4% +40 mm = 5 %
4. Dolomite (B/F) Ti CaO MgO SiO2 -5mm = 5% Max
6% 28% 20% 4% +50 mm = 5 %
5. Lime Stone CaO MgO SiO2 -40 mm = 7%
(SMS) grade Max
53% 2% 1.5% +80 mm = 3%
6. Dolomite (SMS) MgO SiO2 -40 mm = 5%
20% 2.5% +70 mm = 5%
7. Mn Ore Mn = 30% min 10-40 mm size
8. Coke Breeze
Material Handling Equipments
Major equipments which are used in RMHP/OHP/OBBP are :
Sl.NO. Major Main Function
1. Wagon Tippler For mechanized unloading of wagons
2. Car pusher For pushing the rakes inside the wagon tippler
3. Track Hopper For manual unloading of wagons
4. Stackers For stacking material and bed formation
5. Barrel/Bucket For reclaiming material also called blenders
6. Transfer car For shifting equipments from one bed to
7. Screens For screening to acquire desired quality
8. Crushers For crushing to acquire desired quality material
9. Belt Conveyors For conveying different materials to the
Raw Materials Division (RMD):
SAIL has the second largest mining outfit in the country after Coal India Ltd.
Spread over the mineral rich stats of Jharkhand, Orissa and Chhtishgarh, the mines
of SAIL started their operations as captive sources of raw materials of its
integrated steel plants.
By virtue of their locations and also having developed under the different steel
plants for more than 2 to 4 decades, they present a picture of fascinating diversity,
not only in the nature of their reserves/deposits, but in their legacies as well, with
each one of them being remarkably distinct from the other.
In 1989 SAIL launched Raw Materials Division (RMD) as a separate unit and by
June 1990 had brought all its mines that were captive to its steel plants in the
eastern sector RSP, DSP, BSL and ISP (then a subsidiary) – under its umbrella.
The mines attached to Bhilai Steel Plant continued to work separately and were
kept out of the RMD ambit. The avowed purpose for formation of RMD was to
rationalise supply of raw materials to different SAIL steel plants in the eastern
sector and to achieve systematic reduction in purchase of iron ore, in particular,
from external sources with a view to ensure uninterrupted availability of raw
materials, economically and of consistent quality. Unified control, incremental
improvement through networking and integrated efforts and synergetic sourcing of
raw materials, were the main driving forces behind the wisdom of the architects to
conceive RMD in older to achieve self sufficiency in iron ore to underscore SAIL’s
operational and competitive strategies before the dawn of liberalisation in the steel
Presently, RMD, with its headquarters at Kolkata, has 7 iron ore mines at
Meghahatuburu, Kiriburu, Bolani, Barsua, Kalta, Gua and Manoharpur and
3 operating flux mines at Kuteshwar, Bhawanathpur and Tulsidamar, RMD
has 3 customer services Offices (CSO) at Rourkela, Durgapur and Bokaro
for liaison and coordination with its customers (the steel plants) and 2
Liaison Offices (LO) at Delhi and Bhubhaneswar for liaison with various
Central and State Government as well as different statutory agencies.
Raw Materials Division (RMD) of SAIL:
Raw materials division (RMD) of SAIL is the second largest mining organisation
in the country after Coal India Ltd. It is responsible for supply of consistent quality
and quality of raw materials of steel plants. Specific mission of the division is to
achieve rapid expansion and optimisation of its production capacity, improvement
I technology quality and profitability with better service to steel plants. The
composite picture of demand of raw materials as per Corporate Plan 2011-12 is
give in table No. 1
Table : 1 : Demand of Raw Materials (other than Coal)
Raw materials 2011-12 (Million Tonnes)
Iron Ore : 46
Dolomite : 4.73
The Raw Material Division (RMD)was formed in 1989 with the avowed
purpose of creating synergy between all the SAIL Mines in the eastern
sector, to rationalize and ensure the supply of quality raw materials to the
Steel Plants and achieve self-sufficiency in Iron Ore.
Raw material like Iron Ore, Limestone, Dolomite, Manganese ore and Coke
are used for iron making in steel plants. It is preferable to have low ash
content in the coke, low gangue material in the iron ore and fluxes to
increase furnace productivity. In order to ensure consistency in quality ad
quantity of major raw materials SAIL has a number of captive mines. The
mines were in the beginning captive to respective steel plants. As our
demands grew stringent in terms of quality, it was felt necessary that the
mines be brought under one umbrella. All the mines belonging to RSP, DSP
and BSL were brought under one function called Raw Materials Division, It
was formed during 1989-90.
It was formed with the following goals in mind :
Proper development of mines and optimum utilisation of assets.
Create synergy in mining operations.
Reduction in dependence on non-captive sources by increasing asset
utilisation/productivity and inter-plant transfers.
Perspective planning and development of new sources.
Centralised responsibility to organise supply of raw materials to plants
of desired quality and quantity.
Proper emphasis on mine planning and long-term development of the
Integrated approach for development of new mines and scouting of
new mineral areas.
Mines under the Raw Materials Division:
Presently, RMD with its headquarters in Kolkata, manages 7 iron ore mines
and 3 operating flux mines. Salient features of these mines are given below :
Mines State Year of Rated Capacity
Kiributu Jharkhand 1964 4.25
Meghahatuburu Jharkhand 1985 4.30
Bolani Orissa 1960 4.20
Barsua Orissa 1960 2.01
Kalta Orissa 1966 1.10
Gua Jharkhand 1919 2.40
Manoharpur Jharkhand 1901 0.70
Kuteshwar Madhya Pradesh 1974 1.10
Bhawanahpur Jharkhand 1979 0.80
Tulsidamar Jharkhand 1970 0.34
KUTESHWAR LIMESTONE MINES:
It is under Raw Material Division of SAIL and located in the
KATNI district 65 km away from the railway station. Recently
.01 million ton per year lime stone finished product as alum dispatch to all other
steel plant like RSP,BSP,BSL,DSP,IISCO. It is first started in 1973 but it comes
into picture on June 1976 .
Today finished product of 75 percent done through the mechanised mines and 25
percent from the manual. Lease has been granted over an area of 1036.03 hectares
which comes in two leases namely Right bank ( 944.89 hectare) Left bank (91.14
hectare) of MAHANADI river.
Entire lease hold is in revenue land comprises of mines linked area as 240.5
hectare. Total lime stone resume on 2008 is reported to be 97.11 million tonne in
right bank and 11.66 million tonne in left bank. Presently mining activities is
mainly concentrated on right bank fully mechanised worked by open construction
top slicing method by deploying heavy earth machineries like DTH drills,
excavators , dumpers, dozers.
Product lime stone is 812803 tonnes from right bank and 24887 tonnes form left
bank. The management has made good effort towards the afforestation by planting
many trees and many safety measures, also it consists of a good school upto 12th
level, all quarters for the employees ,a beautiful guest house for outside guest along
with well equipped hospital and other related township facilities.
The project is headed by Mr.Hari Shankar Prasad(GM,Flux,RMD,SAIL) along
with several others dignitaries as DGM, AGM, Senior managers, Managers,
Junior Managers, Engineers and other workers and co-workers.
It is the amount received by an individual paid by his/her
employer in addition to salary. Under section 15 of the Income Tax Act, 1961
these allowance are taxable excluding few condition where they are entitled of
Type of allowances:
House rent allowance
Leave travel allowance
DA is calculated on the price of some selected commodities. If it goes up or
down then it is revised accordingly. DA once declared it is paid every month
with salary .Amt. changes with revision.
House Rent Allowance:
Under sections 10(13A) of Income Tax Act, 1961 allowance is defined as an
amount received by an employee paid by his/ her employer as a rent of his/her
The following method is used for calculating H.R.A-
H.R.A = (BAISC+DA+VDA)*15/100
It is the amount paid by employer for availing entertainment services. Under
section 16(ii) of Income Tax Act, 1961 it is entitled to deduction in tax from is
Employees are being paid monthly Education allowance for the children
studying in the Schools/Colleges. Where such education allowance is being
paid monthly, the same is to be considered as wages under Sec.2(22) of the ESI
Act and the contribution is chargeable on the said amount. However, in such
cases where instead of paying the education allowance on monthly basis, the
amount spent as fee is reimbursed to the employees and booked under
education allowance, in such cases no contribution is payable.
It is totally free of cost to all the workers up to any amount in any hospital all over
in INDIA by mentioning the proper bills and proper prescription of the doctors
Leave travel allowance:
Leave travel allowance is paid to the employee to compensate the expenses
incurred by the employees on traveling etc. The traveling allowance or value of
any traveling concession is also being paid to the employees in the nature of
conveyance allowance, which is neither wages for the purpose of coverage of
employees under Sec.2(9), nor it is treated as wages for the payment of
contribution under Section 2(22) of the ESI Act.
CL (Casual Leave):10 for staff and 15 for executive in a year.
EL(Earned leave):-22 for staff and 30 for executive in a year but it cant be carry
forward in the next year or so on.
HPL(Half Pay Leave):-In this the half payment of employee get deducted.
RH(Restricted holidays):-It is 5 for the staff and 9 for executive in a month.
The Shift Allowance is admissible to all the worker who are working in shift. it is
compulsory for all worker consisting of “A”, ”B”, ”NIGHT”, ”GENERAL” shift.
In the case of the employer as and when the employer finds the need to have work
done expeditiously, in addition to the normal work during the course of the
working hours, the employer offers to the employee to do the overtime work after
the working hours. When employee does overtime work it amounts to the
acceptance for the same, hence there emerges concluded implied contract between
the employer and the employee. Both the remuneration received during the
working hours and overtime constitutes a composite wage and thereby it is a wage
within the meaning of Sec.2(22) of the ESI Act. Therefore, the contribution is
payable on the overtime allowance. However, overtime allowances will be
considered as wage for the purpose of charging the contribution only and will not
be considered for the purpose of the coverage of the employee under the Scheme.
It is the fixed amount which is paid by the company to their workers.
An incentive is any factor (financial or non-financial) that enables or motivates a
particular course of action, or counts as a reason for preferring one choice to the
alternatives. It is an expectation that encourages people to behave in a certain way.
Employee incentive programs into their daily routines to boost employee
productivity and motivate workers.
Types of incentives:
Employee incentive programs into their daily routines to boost employee
productivity and motivate workers. They'll be a boost to the employee's ego and
it'll remind them that you truly value all their hard work. Rewards and
commissions to boost the spirit of a team or any particular employee will always
pay off if it is presented in the right manner
Using different types of incentive plans within the same company allows the
company to respond and motivate employees who may be very different. Some
employees focus on long term goals, while other employees only focus on short
term goals. Employees' needs tend to be different also, some desiring more
vacation time while others prefer more money. Using different incentive plans
allows the employer to respond to these unique needs and implement a more
effective overall plan.
These are basically in monitory terms. Which is paid on the cash basis.
Non-Financial Rewards, Not all incentive pay plans focus on money as the reward.
Time can be a significant reward to many people. Incentive pay plans can provide
time off the job as well as more pay. To many people in our society, defining what
needs to be done and then letting the person complete it in whatever time is
comfortable provides not only free time but a sense of freedom as well.
Some incentive pay plans avoid any involvement with the pay system by
developing contests in which employees receive prizes of value to them. These
prizes can range from merchandise to vacation trips. Of course the prize must be
something the recipient desires. Otherwise there is no incentive to perform.
Incentives such as this can also be dysfunctional if the reward is for something that
is peripheral to the job. The focus on the contest may remove attention from the
basic purpose of the job.
A day may be divided into three shifts, each of eight hours, and each employee
works just one of those shifts; they might for example be 06:00 to 14:00, 14:00 to
22:00, 22:00 to 06:00. Generally, "first shift" refers to the “A” shift, with "second
shift" running from late afternoon to midnight called as “B” shift or so, and "third
shift" being the night shift.
The "three-shift system" is the most common pattern, comprised of "first" from
6:00 a.m. to 2:00 p.m., "second" from 2:00 p.m. to 10:00 p.m., and a "third" (or
"night") shift from 10:00 p.m. to 6:00 a.m. This is generally worked over a six-day
week; to provide coverage 24/7, employees have their days off on different days.
Apart from that a general shift also running for the executives at the general office
hours from 08:00 am to 1:00 pm and on the same day from 3:00 pm to 6:00 pm.
Attendance is counted by the punch card machine. In the century pulp and paper
mill punch card is used for employee (In and out) attendance. Every employee has
their own punch card which is provided by the company. Basically Punch card is a
card in which some holes occur on it. These holes represent employee code
number. When employee came inside the company he would swap this card into
machine and her attendance would be counted.
Verification of Attendance-
To verity the worker’s attendance, an attendance slip is to be sent to respective
workers department. After than the department head will check that the worker is
physically present or not than the final attendance will be counted.
Shift working / Timing:-
Generally 4 shift are working in the company.
Shit working Timing
Shift A 6am to 2pm
Shift B 2pm to 10pm
Shift C 10pm to 6am
Shift G(general) 8am to 6pm (including the lunch break )
Dictated mark P for present, A for absent in attendance register
There is ½ hour lunch break between an individual shift working.
In term of salary leave is a work-off. It can be any type.
Types of leave:
Commonly 3 types of leave is granted by the company to their employee and
These are as following-
(1) Earn leave/previlage leave
(2) Casual leave
(3) Sick leave
Earn leave –
It is for permanent staff and worker of the company. The maximum limit of
Earn leave for staff is 30 day’s and for worker’s 15/16 as per factory act
1948. In the CPP this is 1 day for every 20 working day for workers.
(1) During the first year of service a worker may be allowed not more than
two days’ casual leave for every three months of service put in by him
[Section-4 read with Section 15(2)(b)].
(2) The un availed casual leave shall lapse at the end of the calendar year. If
any casual leave due is refused by the employer in his own interest, the
worker shall be compensated by grant of casual leave on any other day
chosen by the worker or by payment of the average daily wage for that
(3) The casual leave shall not be combined with any other kind of leave.
(4) Except for emergent reasons, casual leave shall not be asked or allowed
for more than three days at a time.
Sick leave –
Paid absence from work allowed an employee because of sickness All
employees except casuals, pieceworkers and school-based apprentices and
trainees are entitled to paid sick leave when they’re ill or incapacitated.
Sick leave varies depending on how long you’ve worked for the employer:
by law, it’s at least one working day for six weeks of employment if you’ve
been on the job less than one year. Unused sick leave can generally
accumulate from year to year.
If you are ill or incapacitated and cannot go to work, you need to let your
employer know straight away. If you are absent more than two days, you
need to present a doctor’s certificate.
Half Paid holiday:-
In the company (CPP) there are 10 paid holiday as national and festival. For
each and every permanent employee is paid for thee holidays. The shift
employee who came to their duties on thee days gets one extra wages for the
Mainly company provides the following limit of leaves.
Leave For staff For executive
HPL 5/6 9
CL 10 15
EL 22 30
Leave For staff For executive
HPL 300 unlimited
CL - -
EL 190 300
S1 to S7 3%
S8 to S11 3.5%
E0 to E9 4%
Other things that is general used:-
CPF=12% of the (Basic + DA).
VPF=Fixed can’t be changed.
Pensions=2% of (Basic+DA).
For the following purpose they just used the foxbase software for
maintaining record and Microsoft excel for the purpose of maintaining cost
sheet for all the production.we can say that the following software foxbase is
just like the dos format and there are 5 major slab in that for maintaining any
database of the employee.
Employee Master Slab:
Earn and deduction code.
Name of the employee
Date of birth
DA slab master
Non Practice Allowance(only for doctors)
Loan for scooter/moped/car(for the staff/executive)
Taxable / Non-Taxable
Access code executable
Access code staff
Link code (for final calculation)
Employee master changes
Miscellaneous income entry
Attendance for INC/REW
Reward @ Day rate entry
Incentives @Day rate entry
House building loan entry
Non recovery display
DA Arrear calculation
Pay journal voucher
Pay J V concession
Co-operative deduction file
On screen display
Details of NBC deduction
Income Tax payment
Some common terminology
Variable cost:-Cost that varies from time to time, means if
the production is higher, the variable cost is low n vive-
versa. Eg: cost of petrol and diesel used for operating
Fixed cost:-this cost is fixed at all intervals, means we can say that fixed
increment, salary and wages.
Operating cost:-This cost is meant for all the operation at different levels
and different heads.
Standard cost for the month:-This is budgetary cost that are calculated on
the basis of data available to them, means on the basis of forecasting and all
Standard cost upto the month:-Means the cost that are being calculated
(in budgetary portion) up to that particular month and by that we can
calculate the desire profit and losses.
Actual cost for the month:-It is the calculated cost that are being generated
on the basic of following work done either by mechanized and manual.
Actual cost up to the month:-It is calculated cost up to that particular
month on the basis of which we can only see the fluctuation in the cost of
Total cost of production:-Sum of all cost at different activities done from
the starting i.e blasting and down to dispatch of the product.
Cost per tonn:-It is calculated by the following formulae i.e total cost of
production divided by the amount of finished product dispatch.
On what basis total Cost of Production are being
The total cost that are being calculated on the different heads comes under
the cost of production starting from the mining down to final despatching of
the finished product.
Salaries and wages
Store and spares
Prospecting and development experiment
Repair and maintenance
H.O and Z.O expenses
Royalty for the lump size
Royalty for the middling
Other mislleneous cost
Hospital expenses at township
SWOT Analysis of the Industry
The strengths, weakness, opportunities and threats for the Indian Steel
industry have been tabulated below. The national steel policy lays down the
broad roadmap to deal with all of them.
Availability of iron ore and coal Unscientific mining
Low labour wage rates Low productivity
Abundance of quality manpower Coking coal import dependence
Mature production base Low R&D investments
High cost of debt
Unexplored rural market China becoming net exporter
Growing domestic demand Protectionism in the West
Exports Dumping by competitors.
The industrialization in India for its economic growth, apart from its
advantages, has brought pollution problems in the environment. Awareness
about control of this pollution in industries has increased today, both in
public sectors as well as in Government. SAIL, has adopted pollution control
as one of the thrust areas to give better working environment in the outside
its units thereby achieving increase in production. SAIL has set up a multi
level organisation “Environment Management Division” (EMD) at Kolkata.
This division started functioning from 28th June 1988. This division
functions under the Directorate of Corporate Planning and is headed by a
senior executive. The ISO 14001 addresses the standard for Environment
Management and the process f certification to the standard in different SAIL
units is on.
Objectives of EMD:
To develop data bank and expertise :
On existing legislation and information on environmental protection
stressing on pollution control in the plants, for coordinating with
On latest trends and developments in the pollution control and waste
management technology and techniques.
To assist steel plants in implementation and transfer of latest
technology and details of the special equipment in the relevant areas.
Monitoring and control of pollution
Continuous monitoring of the environment impact due to plant’s
operation and bringing it within the acceptable limits.
Identifying action plans for both short term and long term monitoring
facilities and controlling measures of pollution for different units.
An environment policy in SAIL has been made and it is given in the
Environmental Policy :
We, the Steel Authority of India Limited (SAIL), manufacture various
products of iron and steel. We have four integrated steel plants and two
special steels plants along with captive mines for iron ore, lime-stone and
dolomite. We also have an extensive marketing spread across the length and
breadth of the country.
We believe that contributing towards a clean and sustainable environment is
one of our prime responsibilities. We also believe that resource optimization
and environmental protection are fundamental for sustaining all our business
We, therefore, commit to :
Introduce sound environmental management practices in all our
Conduct our oprations in an environmentally responsible manner to
comply with relevant regulations
Progressively replace the pollution prone processes by cleaner, energy
Minimise waste generation and promote recovery, recycle and reuse.
Increase greenery in and around our plants and mines
Strive for continuous improvement in our environmental performance
by setting challenging targets
Conduct necessary programmes to enhance environmental awareness
amongst our employees and the general populace around the plants
Encourage our subsidiaries and business associates to adopt similar
approach for environmental protection
Review the policy periodically and update the same.
This policy shall be given wide publicity.
SAIL Safety Organization (SSO):
SAIL gives adequate emphasis on safety of human resources and assets of
the company along with production and productivity, cost reduction and
quality. SAIL has safety department in all the plants, subsidiary units and
mines to look after safety management of the respective plant and units. In
1988, a corporate safety unit named SAIL Safety Organization (SSO) was
set up to coordinate and monitor the safety activities and to provide
appropriate corporate thrust on safety management in Company.
The major areas of function of SSO are :
1. To coordinate, monitor, promote and enhance the safety, fire services
standards of plants/mines.
2. Formulation of corporate safety action plan.
3. Development of policies of systems and procedures for workplace
4. Advice to plants/units/mines I matters relating to safety.
5. Competence through training that includes the development and
empowerment of employees.
6. Encouraging awareness and responsibility among employees.
7. Tracking of performance – specifically by organizing meetings and
8. Maintaining Incident/Accident Management Information System.
9. Conduct periodic audits of Safety Management System.
10.Carrying out secretarial functions of JCSSI.
The major accident prevention measures by SSO are :
Preventive measures for avoiding accidents at work sites
receive topmost priority in the safety management programme
by SSO like :
Conducting Hazard Operatability studies, job safety analysis
and Hazard analysis to identify hazards and suggest preventive
Investigation of fatal accidents, to find out causes and suggest
remedial measures to avoid recurrence.
Organising safety training programmes for Sr. Line Manager,
Line Managers, Safety Officers and Inspectors and opinion
Introducing System of internal benchmarking in safety (intra
and inter plant).
Inclusion of safety as a factor in PAR of executives.
Prepare and issue guidelines for owning of responsibility
towards safety by Line Managers.
Computing of cost of accidents for all injury on works cases.
Central Coal Supply Organization (CCSO)
Situated in Dhanbad in Jharkhand, the Central Coal Supply Organization
(CCSO) of the Operation Directorate, SAIL is entrusted with the crucial task
of arranging around 14,000 tonnes each of indigenous coking coal and
power grade coal daily for steel plants.
Central Marketing Organization (CMO)
Central Marketing Organization (CMO) one of he largest marketing network
in the country, markets mild steel products from the four integrated steel
plants of SAIL. The CMO headquarters is at Kolkata and the commercial
directorate is located at New Delhi. A nation-wide network of regional
offices, sales offices and several strategically places warehouses is further
supplemented by consignment agents and authorized dealers to meet the
demands of the smallest customers in the remotest corners of the country.
CMO maintains its aggressive marketing efforts in order to retain market
leadership by meeting customer requirements and evolving strategies to
increase sales. In order to strengthen the marketing approach and initiate
product and segment specialization, CMO has been reorganizaed on the
basis of long and flat products. Likewise, key account Management process
(KAM) has been implemented in CMO to provide better service, quality and
tailor made products to key customers through a single window. This is
being followed up by the customers satisfaction index (CSI) to increase
responsiveness to customer needs.
Yet another significant development has been the re-orientation of the sales
branches and warehouses. This will enable the marketing team to
concentrate on building customer relationship to provide them better service,
along with the best quality. Dealer development, especially in rural areas, is
being aggressively pursued by CMO to reach out to the farthest corners of
the country. This wide network of authorized dealers also helps meet
customers’ demand for steel in small quantities.
International Trade Division (ITD) of CMO manages exports of mild steel
products and maintains close liaison with buyers abroad. ITD has been
successful in making SAIL steel, a familiar name. across the continents.
SAIL’s reputation as a producer of quality steel products has been
established in as many as 70 countries around the globe. Notable among
them are Japan, Egypt, UK, Italy, Russia, Sri Lanka, Bangladesh, Taiwan,
Myanmar and Nepal. Transport & Shipping Division (T & S) of CMO
perform the important functions of ensuring proper dispatch of export
material and timely imports of raw materials to keep the SAIL plants going.
SAIL Consultancy Division (SAILCON)
SAIL, during its existence of over four decades, has acquired a high level of
expertise and vast experience in building, operating and maintaining a chain
of integrated and mini steel plants and associated facilities encompassing
diverse technologies, equipment and product-mix. The knowledge thus
gained led to formation of a consultancy and services marketing division –
SAIL. Consultancy Division (SAILCON), based in New Delhi, to provide a
wide range of services to the iron & steel and other industries in India and
SAILCON is a single window, for clients spread over the world, providing
design, engineering, technical, management and training consultancy and
services available from different SAIL plants and units. It is an ISO
9001:2000 certified organisation equipped to render quality services from
concept to commissioning.
In addition to successful completion of a number of assignments in India,
SAILCON has satisfied clients in Egypt, Saudi Arabia, Iran, Qatar,
Bangladesh, Oman, Philippines, Nepal, Taiwan and Thailand.
Research & Development Centre for Iron and Steel (RDCIS)
The Research & Development Centre for Iron & Steel (RDCIS) at Ranchi is
the corporate R & D unit of SAIL. Set up in 1972, the centre has ISO 9001
certification to its credit. It undertakes R & D projects in diverse realms of
Iron & Steel Technology under the categories of Basic Scientific Research,
Plant Performance Improvement, Investigation & Consultancy Assignments,
Equipment & Instrument Design and Major technology Development.
RDCIS has more than 300 dedicated and competent scientists and engineers
and its laboratory is equipped with around 300 sophisticated diagnostic
research equipment and 5 pilot plant facilities.
RDCIS provides customers with prompt, innovative and cost-effective R&D
solutions; develop and commercialise improved processes and products;
continually enhance the capability of its human resources to emerge as a
centre of excellence. The major efforts are directed towards cost reduction,
quality improvement and value – addition to products of SAIL plants and
providing application engineering support to SAIL’s products at customers’
end. RDCIS alongwith steel plants has recently taken initiatives to develop
special steel products utilizing the modernized products facilities at steel
RDCIS also offers technological services to various organisations in the
form of Know-how transfer of technologies developed by RDCIS;
Consultancy services; Specialised testing services; Conract research and
technology awareness programmes.
Centre for Engineering & Technology (CET)
Centre for Engineering & Technology (CET), an ISO 9001 certified
organisation, is the design, engineering & consultancy unit of SAIL. It has
its Head Office at Ranchi, Sub Centres at Bhilai, Durgapur, Rourkela,
Bokaro and an IPSS Secretariat at New Delhi for formulation of Interplant
Standards for Steel Industry. As a ‘solution provider for all project needs’,
CET has been rendering complete range of services not only to the steel
plants under SAIl but also to various clients other than SAIL – both within
and outside the country. Some of the important clients other than SAIL
include EGITALEC (Egypt), Ashok Steel (Nepal), Chittagong Steel Mills
(Bangladesh), Birla Copper, Mukand Ltd., Jindal Vijaynagar Steels Ltd.,
National Iron & Steel Co., Hindustan Zinc Ltd., National Mineral
Development Corporation and Romelt – SAIL (India) Ltd. CET is also the
nodal agency for acquisition and lateral transfer of technologies within SAIL
The range of services includes conceptualisation, project evaluation &
appraisal, project consultancy, design & engineering and project
management in the areas of iron and steel making Apart from this. CET has
been providing its services in the related areas like mine planning and
development, infrastructural development, industrial piping, industrial
warehousing, material handling system, industrial pollution control and
environment management systems, water supply and sanitation, town
planning, poer projects, etc. CET represents a reservoir of technical &
managerial expertise inherited over four decades of Indian Steel Industry. It
has kept pace with changing times and made continuous efforts for updating
skills of engineers through planned HRD programmes, collaborative
arrangements with academia and other professional organisations of repute
and acquiring up-to-date hardwares & softwares for engineering work. All of
these are blended with a concern for cl’ents' profitability to ensure that the
clients get the most cost effective solution, tailor-made for their requirement.
Management Training Institute (MTI)
This apex training institute for management training in SAIL was set p in
1962 in Ranchi to fulfil the managerial development needs of senior
executives of the company and thereby act as a catalyst for achieving
organizational goals. It is one of the first management training centres to be
set up in the corporate sector in India.
The Management Training Institute (MTI) assesses the training needs of
senior executives, designs and executes need – based raining programmes
and disseminates modern management thinking through its publications. It is
involved in preparing trainer manuals, case studies, exercises and business
games. It also undertakes management research for diagnosing
organizational issues. MTI designs company-wide HRD interventions,
organizes senior level management workshops and conducts problem
solving workshops for middle level executives. It also undertakes
consultancy services in the are of management, organisation development
and HRD within India and abroad MTI also offers some selected
programmes to executives of other organisations. In recent past it has
conducted programmes for MMTC, NALCO and TISCO.
MTI, as a corporate institute, monitors the overall progress of training
activities in SAIL. It organizes regular training audits using documented
training standards. It conducts network meetings for selected and important
programmes. These steps are taken to ensure quality in training activities
and continuous improvement.
Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover
SAIL 238.85 98,654.62 44,208.43 6,174.81 35,522.89
Tata Steel 624.20 55,379.90 24,315.77 5,201.74 56,650.78
JSW Steel 1,026.95 19,208.96 14,158.42 458.50 19,231.88
Visa Steel 36.75 404.25 1,035.01 -66.81 1,173.12
Cost sheet for the cost of production
comparision of two steel giants in india:
At last it is concluded that the company as a whole is a well branded
company. The goodwill of the company is very high. As one of India's most
valuable and respected corporations, SAIL is widely perceived to be
dedicatedly nation-oriented. Chairman S K Roongta calls this source of
inspiration "a commitment beyond the market". In his own words: "SAIL
believes that its aspiration to create enduring value for the nation provides
the motive force to sustain growing shareholder value. SAIL practices this
philosophy by not only driving each of its businesses towards international
competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part."
SAIL employs over 125,000 people at more than nine locations across
India. The Company continuously endeavors to enhance its wealth
generating capabilities in a globalising , fulfill the aspirations of it defence
and non-defence. This over-arching vision of the company is expressively
captured in its position.
At the onset I would like to thanks all the associate authorities who have
helped me out in doing this project a successful completion at the end.