Steel Authority of India Ltd will see its workforce shrink by 20,000 till 2011-12 as it continues with the rationalisation of manpower aimed at increasing competitiveness and productivity, the government said on Friday.
"The rationalisation will be done mainly through normal superannuation of employees on attaining the age of 60 years as well as through voluntary separation schemes," Minister of State for Steel A Sai Prathap said in a written reply to Rajya Sabha.
The manpower will reduce by 20,000 till 2011-12 if the existing trend of separation of workers continues, he said.
The 'Navratna' steel giant's manpower strength stood at 121,295 at the beginning of the current fiscal.
"SAIL has been rationalising its manpower on an ongoing basis," he said, adding that with rationalisation of manpower, several systemic changes such cluster system of working, flexibility in deployment, automated working and adoption of best practices have been promoted leading to improved efficiency and better work culture.
Earlier, SAIL had said that the rationalisation was also aimed at reducing employee cost by Rs 350,000 crore (Rs 3,500 billion) per annum. The company had seen a net reduction of 7,500 employees by way of superannuation and voluntary retirements in 2008-09.
SAIL to borrow Rs 5,000 cr in FY'10
Steel Authority of India Limited said on Friday it would borrow Rs 5,000 crore (Rs 50 billion) this fiscal to partly fund its expansion plans.
"We will be borrowing to finance our capital expenditure of this fiscal. It could be through long term debt... we'll borrow at least 50 per cent of our capex of about 10,000 crore (Rs 100 billion)," SAIL chairman S K Roongta told reporters.
The company, which had earlier this month slashed prices of its products by up to Rs 2,000 a tonne, said it may remain steady.
"The prices are looking stable," he said. When asked if the company is considering FPO to raise funds, he declined to comment.