core sector communique

Steel Minister Reviews the Performance of MECON Ltd. 

The Union Minister of State (Independent Charge) for Steel, Shri Beni Prasad Verma, has reviewed the performance of MECON Ltd., a Public Sector Undertaking under the Ministry of Steel, for the year 2010-11 and 1st Quarter of 2011-12 yesterday. Shri A.K. Ghosh, the CMD of MECON and other officers of the Company briefed the Minister about the performance of the company and highlighted its achievements against the MoU targets for the year 2010-11 and also the growth registered by the Company in comparison to 2009-10, as under:-

• Business procured by MECON during the year 2010-11 has been Rs.672.65 crore. Turnover for the year 2010-11 increased to Rs.641.38 crore. • Profit before tax for the year 2010-11 was Rs.140.93 crore, recording an increase of 13% over last year. • Profit after tax for the year 2010-11 was Rs.93.68 crore. Net worth of the company increased to Rs.203.97 crore as on 31.03.2011., • MECON’s contribution towards exchequer of Central Government, State Government and Government Insurance Company for the year 2010-11 was Rs.121.13 crore.

The Minister congratulated MECON team for its excellent performance and annual results for the year 2010-11 and also applauded the efforts made by MECON for taking care of the stakeholders in general and especially of the surrounding villages under the CSR policy with emphasis on basic requirements like health, education, creating self employment opportunities for the youth and assisting infrastructural development activities.

Shri Verma observed that although MECON’s core field of activity is in steel sector, in recent years the company has extended its activities in new sectors like power, oil & gas and infrastructure. In order to enhance its business procurement and turnover, the company should adopt a two-pronged approach, namely, (i) consolidating its presence in the core sector, i.e. steel and (ii) expand its activity in the new areas of activities.

The Minister also suggested that in order to keep abreast with the latest technologies the company should develop partnership with good companies and take part in conferences and exhibitions abroad. Senior executives of the company should be provided such exposures, so that a body of knowledge is built up in the company.

The Minister hoped that the company would sustain its impressive work in the coming years. While congratulating one and all, he felt that complacency should not creep in and more innovative ideas should be generated and MECON should set up an example in the area of design, engineering and consultancy services not only in the area of metal, but also in the area of oil & gas, infrastructure and power.