SAIL aims to reduce net debt by Rs 20,000 crore over the next few months
SAIL aims to reduce its debt to between 15,000 and 20,000 crore rupees over the next two months, President Soma Mondal told reporters on the sidelines of the inauguration of the new CSTM headquarters.
At the end of the first quarter of the current fiscal year, SAIL’s net debt stood at Rs 30,000 crore, compared to Rs 35,000 crore at the end of the fiscal year. “We will try to bring our net debt down to Rs 15,000 to 20,000 crore in a few months, but that depended a lot on the evolution of steel prices,” Mondal said.
Although steel prices showed an upward trend in early July, they fell in the last week of the month. However, markets were anticipating a rise in August, but Mondol said that while flat steel prices are stable, long steel prices are improving.
Regarding the proposed joint venture between SAIL and ArcelorMittal, Mondal said, there has been no progress so far. In December 2017, SAIL approved the proposal to enter into a JV with ArcelorMittal to manufacture high-end automotive steel. While the JV has yet to be scrapped, the two have yet to sign a definitive deal.
SAIL and ArcelorMittal signed a memorandum of understanding in 2015.