"Safety net must precede any privatisation programme. National renewal fund in its present form is incapable of handling such a task," SAIL chairman Arvind Pande said at a meet on "HRD Interventions for Growth" organised by Standing Conference of Public Sector Enterprises (SCOPE) last week.

SAIL, under pressure due to severe competition from cheap steel imports and prolonged slump in the domestic demand, was already working on a strategy for a turnaround, SAIL director (personnel) MK Moitra said.

Human resources department played an important role in turnaround efforts, Moitra said adding attaining top quality on the shop floor and right sizing -- optimum use of manpower -- were driving the steel major to face competition.