"We have been honouring all our commitments on debt and on no occasion have we defaulted. This year also we will meet all of our obligations," SAIL financial director Virender Singh Jain said.

Asked if SAIL, which posted net loss of Rs 1,574 crore in the last fiscal and is expected to take a knock of about Rs 1,200 crore in April-September this year, could face the financial crisis like Essar Steel, Jain said "Our net worth is over Rs 6,300 crore."

Essar recently defaulted on its external commitments and had to take recourse to restructuring the group drastically.

SAIL's total repayment of debts due in the current financial year is in the range of about Rs 1,500 crore of which Rs 200 crore have already been paid, Jain said.

Stating that SAIL was expecting clearance of a revival package from the government soon, Jain said even otherwise an internal exercise had been undertaken to meet any contingency.

SAIL has not so far approached banks or financial institutions to raise money from the market, he said adding that "first we are trying to work out with the government for the approval of business and financial restructuring plan submitted by SAIL."

Jain said that SAIL was also awaiting government approval for the revival package which includes government gurantee for raising Rs 1,500 crore from the market."

Though, SAIL is confident of government approval as far as business restructuring is concerned, the corporation would press for government support for the entire package rather than a piecemeal solution.

Business restructuring is necessary not only to get financial cushion but also for the company to remain competitive in an otherwise depressed market, Jain said.

Business restructuring includes hiving off non-core activities like power plants, oxygen plants and other plant-based shops through joint ventures or creating subsidiaries.

Besides restructuring the company, SAIL was pinning hopes on economy revival in the current financial year pushing demand for steel in the range of 8 to 10 per cent annually.

SAIL managed to modernise its integrated steel plant at an estimated cost of about Rs 12,000 crore financed through internal accruals and market borrowings, without resorting to any budgetary support from government.

Consequent to capitalisation of the modernised facilities, there has been a steep increase in interest and depreciation charges, Jain said adding that it was expected to increase to Rs 3,500 crore for the current financial year compared to Rs 3,100 crore last year.