SAIL aims to cut net debt by Rs 20,000 crore in next few months

SAIL has targeted to bring down its debt between Rs 15,000- 20,000 crore in the next couple of months, chairperson Soma Mondal told reporters on the sidelines of the inauguration of the MSTC new headquarters.

At the end of the first quarter of the current fiscal SAIL’s net debt stood at Rs 30,000 crore, down from Rs 35,000 crore at the fiscal end. “We will try to bring down our net debt to Rs 15,000- 20,000 crore in a couple of months but much depended on the movement of steel prices,” Mondal said.

Though steel prices have shown a rising trend in early July, they tamed down during the last week of the month. However, the markets anticipated a rise in August but Mondol said, though the flat steel prices were stable, long steel prices were improving.

On the proposed joint venture between SAIL and ArcelorMittal, Mondal said, there has been no progress so far. In December 2017, the SAIL approved the proposal of entering into a JV with ArcelorMittal to manufacture high-end automotive steel. Although the JV has not yet been scrapped both are yet to sign a definitive agreement.

SAIL and ArcelorMittal signed a memorandum of understanding in 2015.