core sector communique

Steel Minister Reviews Annual Performance of MSTC and FSNL

The Union Minister of Steel, Shri Beni Prasad Verma has reviewed the performance of MSTC Limited here today. He appreciated MSTC for achieving continuous growth in its profits during the last three years. He advised the company to explore other areas of e-auction and improve the physical and financial performance of the company. Shri S.K. Tripathi, CMD, MSTC made a presentation on the performance highlights of the Company. During 2011-12, MSTC’s volume of business increased to Rs. 21,751 crore from Rs. 14,101 crore in 2010-11. The company made a profit of Rs. 176 crore during 2011-12 and registered Rs. 58 Lakh per employee profit, creating an all time record for the service sector in India. MSTC has been successfully auctioning Iron Ore in Karnataka through its e-auction portal and has entered into e-auctioning of tea, iron ore, human hair, chromites ore and agricultural products in last two years. MSTC plans to enter the recycling business and is working on the proposal for constructing first Shredding Plant in the country. This plant will be able to supply shredded scrap to domestic consumers at a reasonable price and also save precious foreign exchange. It also plans to build a Container Freight Station in Haldia. Reviewing the Annual Performance of FSNL - a wholly owned subsidiary of MSTC Ltd., Shri Beni Prasad Verma advised FSNL to improve its scrap recovery as well as its overall performance. FSNL’s scrap recovery during the year has reduced to 2.15 million tonnes as compared to last year’s figure of 2.64 million tonnes. The turnover for the year 2011-12 was Rs. 174.91 crores as compared to the last year’s figure of Rs.168.53. The Profit before Tax for the year 2011-12 is Rs.2.03 Crores as compared to last year’s figure of Rs.1.78 Cr. The decline in physical performance has been due to closure of operations at Ranchi Unit and non-renewal of long term agreements at Ispat Industries Ltd. Dolvi. The profitability of the company has shown marginal improvement. FSNL renewed its Long Term Agreement with SAIL on 19.5.2012. Negotiations for Renewal of Long Term Agreement with RINL are in progress. The Secretary, Ministry of Steel Shri D.R.S. Chaudhary was also present on the occasion.