"We Can't Be Seen In Isolation"

SAIL has always led from the front. Is it spearheading the industry's decline now?

I wouldn't say that the state of SAIL is a true reflection of the state of the steel industry. Despite static demand, our sales in the home market have witnessed a 4 per cent increase. But its performance cannot be viewed in isolation. The industry has been going through difficult times primarily because the slowdown in steel consumption has come when new capacities have materialised. Further, the currency debacle in east Asia has led to cheap imports. The input costs have also shot up.

SAIL's profits were only Rs 49 crore in the first half. What steps are you taking to counter this?

Internally, we have taken several measures to combat the external situation through improvements in operational efficiency as well as a more aggressive marketing strategy. We expect to achieve a saving of around Rs 700-800 crore this year. At Durgapur and Rourkela, modernisation is complete. With the hot strip mill modernisation at Bokaro slated for the next quarter, the quality of our hot rolled coils will improve.

Do you think the steel import policy is biased against industry and is largely responsible for the bad state of the industry?

The import duties have slumped in the last few years to a peak of 25 per cent. While this is inevitable given the globalisation trend, in many advanced countries, there is a provision to enforce a provisional duty on the merits of anti-dumping petitions.

How would you sum up the performance of an Arvind Pande-led SAIL?

Performance can be judged by a company's long-term health. For this, ability to generate profits is vital. More important is to put a company on a path of revitalisation so that it emerges stronger.