Panel Review Highlights SAIL's Competitiveness Challenges

Parliamentary Panel Urges SAIL to Boost Sales, Expand Product Portfolio and Cut Costs​

New Delhi, March 27 – A Parliamentary Standing Committee has asked Steel Authority of India Limited (SAIL) to strengthen its sales strategy, improve revenue realisation, and enhance market competitiveness, citing gaps in its product portfolio and operational challenges.

Focus on Sales, Marketing and Digital Expansion​

In its report titled “Organisational Structure and Performance of Steel Authority of India Limited (SAIL) – A Review”, the Standing Committee on Coal, Mines and Steel (2025–26) recommended that SAIL:

• Strengthen its sales and marketing network
• Ensure efficient movement of raw materials and finished products
• Expand digital sales platforms
• Deepen key account management programmes
• Increase the share of value-added and high-margin products

These steps are aimed at improving revenue realisation and market competitiveness.

Gaps in Advanced Steel Product Portfolio​

The panel noted that while SAIL has made progress in producing certain grades such as:

• Extra Deep Drawing (EDD) steel
• Interstitial Free (IF) steel
• Cold rolled grain-oriented electrical steel

Several advanced alloy and speciality steel grades, currently imported, remain outside its portfolio. The committee urged greater emphasis on research and development (R&D) to bridge this gap.

Reducing Dependence on Imported Raw Materials​

To strengthen long-term raw material security, the panel recommended that SAIL:

• Explore and acquire new coking coal blocks
• Reduce reliance on imports

Capacity Expansion Targets and Delays​

SAIL has set ambitious expansion goals:

• 35 million tonnes per annum (MTPA) by 2030–31
• 50 MTPA by 2047

However, the committee flagged delays in tendering and execution of expansion projects at:

• IISCO Steel Plant
• Durgapur Steel Plant
• Bokaro Steel Plant

It called for a time-bound, phase-wise roadmap with clear milestones and accountability mechanisms.

Modernisation and Loss-Making Units​

The report emphasized the need for:

• Upgrading blast furnaces
• Installing oxygen plants
• Preparing turnaround plans for loss-making units

“Out of 11 plants under SAIL, 6 have recorded losses in the last financial year,” the committee noted.

Cost Efficiency and Sustainability Measures​

To improve operational efficiency, the panel suggested:

• Reducing power purchase costs through captive power expansion
• Installing coke dry quenching systems
• Enhancing waste heat recovery

It also recommended a plant-wise water conservation plan with targets for reducing consumption and increasing recycling.

Strengthening SAIL’s Competitive Position​

The committee stressed that improving product diversity, operational efficiency, and cost management will be critical for SAIL to compete effectively in both domestic and global steel markets.