New Delhi: A parliamentary committee has asked Steel Authority of India Limited to strengthen its sales network, improve revenue realisation and enhance market competitiveness, noting that several advanced and specialty steel grades are still missing from the company’s product portfolio.
The recommendations are part of the report titled ‘Organisational Structure and Performance of SAIL – A Review’, presented in Parliament by the Standing Committee on Coal, Mines and Steel for 2025–26.
Need to strengthen sales and distribution network
The committee said SAIL should improve its sales and marketing system to ensure smoother movement of raw materials and efficient distribution of finished steel products.
It recommended:
- stronger sales and marketing channels
- better logistics support
- wider product reach across markets
- seamless material movement
Digital sales expansion and high-margin products recommended
The panel also advised SAIL to strengthen digital sales mechanisms and improve customer-focused sales models.
Specific recommendations include:
- expanding digital sales platforms
- deepening key account management
- increasing share of value-added products
- focusing on high-margin steel grades
The aim is to improve both profitability and market position.
Advanced steel grades still outside SAIL portfolio
The committee observed that although SAIL has developed several high-grade steel categories, important products remain outside its portfolio.
These include:
- extra deep drawing (EDD) steel
- interstitial free (IF) steel
- cold rolled grain oriented electrical steel
- advanced alloy steels
- specialty steel grades currently imported
Greater focus on R&D urged
The committee asked SAIL to place stronger emphasis on research and development to develop new steel grades and reduce import dependence.
Raw material security through coking coal blocks
To improve long-term raw material security, SAIL has been advised to pursue:
- exploration of new coking coal resources
- acquisition of additional coal blocks
This is aimed at reducing dependence on imported coking coal.
Expansion targets: 35 MTPA by 2030-31
SAIL has planned major capacity expansion:
- 35 million tonnes per annum by 2030-31
- 50 million tonnes per annum by 2047
Committee flags delays in expansion projects
The panel noted delays in tendering and execution despite board approvals for projects at:
- IISCO Steel Plant
- Durgapur Steel Plant
- Bokaro Steel Plant
Time-bound roadmap recommended
The committee has asked SAIL to prepare a phase-wise modernisation roadmap with:
- clear milestones
- execution deadlines
- accountability mechanisms
Six out of eleven plants reported losses
The report noted that 6 of SAIL’s 11 plants recorded losses in the last financial year.
It recommended plant-specific turnaround plans with measurable targets.
Need for furnace upgrades and oxygen plants
SAIL also needs significant capital investment in:
- blast furnace modernisation
- oxygen plant installation
Water conservation and power cost reduction stressed
The committee further suggested:
- plant-wise water conservation plans
- recycling targets
- captive power expansion
- coke dry quenching systems
- waste heat recovery measures
These steps are aimed at lowering operating costs and improving efficiency.
Focus on long-term competitiveness
The report makes clear that SAIL must accelerate structural reforms to remain competitive in an increasingly demanding steel market.
