On Friday, Soma Mondal took charge as the first woman chairperson of Steel Authority of India (SAIL). After taking the reins of state-run SAIL, she will have numerous tasks at hand. There will be several tasks among her priorities. One of them would be cutting the company’s debt from the present level of about Rs 50,000 crore. Apart from this, she is likely to work on the improvement of operating margin & employee productivity. Also, she would be looking to set the journey right for targeted doubling capacity to 50 million tonne per annum (mtpa) in 10 years. However, the saving grace for the new chairperson is the sharp rise in steel prices.
There are chances that the prices would be at the higher side. This is because of the higher demand and shortage in iron ore supply. Nevertheless, SAIL gains from both ends as it meets all its iron ore requirements from captive sources. SAIL’s stocks are soaring now at near 52-week high in the BSE. This is because of the floating steel market that is holding prices at 12-year high. Nevertheless, any alterations in coking coal prices which SAIL mostly depends on imports might spoil the party.
Talking about a cause of worry, the long-pending wage revision of the company is certainly a problem. Non-executives of the company form a majority. They are also looking for a wage revision for five years now. Also, since 2017, executives are waiting for a revision. Over the issue, a section of SAIL’s employees’ union has already conveyed their discontentment.