Lok Sabha Question No. 2171 (UNSTARRED), answered on 2018-12-24
Subject: Visvesvaraya Iron and Steel Plant
Ministry: STEEL
Asked by: B.Y.Raghavendra

## LOK SABHA

## UNSTARRED QUESTION NO.2171 FOR ANSWER ON 24/12/2018

## VISVESVARAYA IRON AND STEEL PLANT

2171.  SHRI B.Y. RAGHAVENDRA:

Will the Minister of STEEL be pleased to state:

- (a) whether there is any proposal pending before the Ministry for disinvestment of Visvesvaraya Iron and Steel Plant, Bhadravathi and if so, the details and the status thereof;
- (b) whether the Ministry is aware of the fact that the capacity and infrastructure of the plant is underutilized and if so, the details thereof along with the steps taken to fully utilize the capacity and infrastructure of the plant; and
- (c) the  corrective  measures  taken/proposed  to  be  taken  by  the  Government  to improve the performance of the plant and the investment proposed for this purpose?

## ANSWER

THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

- (a) Yes,  Madam.  Cabinet  Committee  on  Economic  Affairs  has  accorded  'inprinciple'  approval  on  27.10.2016  for  strategic  disinvestment  of  Visvesvaraya  Iron and  Steel  Plant.  Preliminary  Information  Memorandum  of  Visvesvaraya  Iron  and Steel Plant is in finalisation stage.

(b)&(c): Yes, Madam.  Detail are given in Annexure-I .

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Annexure-I

## ANNEXURE-I AS REFERRED TO REPLY TO PARTS (B) & (C) OF LOK SABHA UNSTARRED QUESTION NO. 2171 FOR ANSWER ON 24-12-2018

## VISVESVARAYA IRON AND STEEL PLANT PRODUCTION PERFORMANCE

(in Metric tonnes)

-

| Products             | Installed Capacity   | FY 2014-15   | FY 2015-16   | FY 2016-17   | FY 2017-18*   | H1 FY 2018-19*   |
|----------------------|----------------------|--------------|--------------|--------------|---------------|------------------|
| Hot Metal            | 2,16,000             | 67,603       | 60,760       | 53,115       | -             | -                |
| Capacity Utilization |                      | 31%          | 28%          | 25%          | 0%            | 0%               |
| Liquid Steel         | 1,26,000             | 47,278       | 43,563       | 40,679       | -             | -                |
| Capacity Utilization |                      | 38%          | 35%          | 32%          | 0%            | 0%               |
| Crude Steel          | 1,18,000             | 45,386       | 41,951       | 39,326       | -             |                  |
| Capacity Utilization |                      | 38%          | 36%          | 33%          | 0%            | 0%               |
| Saleable Steel       | 98,280               | 35,184       | 35,528       | 26,327       | 16,514        | 4,310            |
| Capacity Utilization |                      | 36%          | 36%          | 27%          | 17%           | 8.77%            |

SAIL has been continuously working on improving the performance of VISP by taking the following measures:

- i. Reduction in cost of procurement of various input raw material switching over to global tender.
- ii. Reducing cost of power through power trading and power wheeling.
- iii. Reduction in cost of fuel switching over to alternate fuel i.e. Coal Bed Methane (CBM) gas.
- iv. Diversification of product mix.
- v. Development of new products for defence.
- vi. Aggressive marketing including long term tie up.

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