The financial turn around of DSP would contribute substantially to an improvement in SAIL's bottom line. DSP was modernised at a cost of Rs 4,800 crore resulting in heavy interest and depreciation burden. In 1998-99 fiscal, the plant incurred a loss of Rs 750 crore out of which interest burden was Rs 350 crore and depreciation Rs 320 crore.

"All time best converter campaign life, high production levels and other operational successes have enhanced the moral of DSP employees. Now, we are turning the corner financially. We are aiming for a cash profit in 2000-01 fiscal so that we do not have to depend on any outside financial support. thereafter DSP has to move ahead to acheive a net profit," Singh told The Financial Express.

Many in Durgapur Steel still have doubts about earning net profit. "Our product mix is not favourable. More than 50 per cent of out products are semies. Unless a rolling mill is set up for value-addition, it is very difficult to earn net profit," an insider said.

Official sources say that there are at least four principal elements which are expected to contribute to achieve cash profit. They are: (a) reduction in interest burden following financial restructuring of SAIL; (b) higher capacity utilisation resulting in lower overheads per tonne of steel produced; (c) improved techno-economics and lowering of cost and production; and (d) higher market realisations.

According to a press release, DSP closed the fiscal with an all-time best saleable steel production of 1.4 million tonne (mt) agrainst previous fiscal's 1.32mt, a growth of 6.3 per cent. It was possible because most of its units operated at the rated capacity in last four months of the fiscal. Stocks came down to only 6,500 tonnes on March 31, 2000.

Recently the converter campaign life shot up to 2,077 blows or heats for converter no 3 in the basic oxygen furnace shop. This is the best ever achieved by any private or public sector steel plant in the country. The previous best in DSP was 1,509 heats. The average life of converter campaign life has jumped from 650 heats in in 1996-97 to 1,150 heats in 1999-2000.