CAG Audit Reveals SAIL's Operational Shortfalls and Financial Impact

The Comptroller and Auditor General of India's audit report highlights delays, excess raw material consumption, and financial losses in Steel Authority of India's blast furnace operations from 2017 to 2024. The report cites an inability to meet production targets, resulting in significant financial implications for the company.

The Comptroller and Auditor General of India (CAG) has identified significant shortcomings in the operations of Steel Authority of India Limited (SAIL) over a seven-year period. The audit, presented in Parliament, critiques SAIL for project delays, production shortfalls, and elevated costs stemming from excessive raw material usage.

Blast furnaces, crucial in the steelmaking process, underperformed against their potential, consuming 0.823 million tonnes of additional iron ore lump beyond standard requirements, incurring costs of Rs 186.26 crore. Coal consumption also surpassed norms, leading to the release of 13.97 million tonnes of CO2 emissions during the 2017-2024 period.

The audit underscored failures in synchronizing planned maintenance, resulting in unplanned production halts. These operational lapses prevented the production of 6.99 million tonnes of hot metal and deprived SAIL of an estimated Rs 7,986.97 crore in revenue. Crucial modernization projects at Rourkela and Bokaro faced delays, risking substantial financial efficiency losses.

(With inputs from agencies.)