Steel Authority of India Ltd

Five Integrated Steel Plants (ISPs), Three Special Steel Plants, One Ferro Alloy Unit, Refrectory Units and One Subsidiary spread over Seven states of India Extensive marketing network spread all over India with 37 Branches, 67 Warehouses, 27 Customer Contact Offices and over 3500 Dealers and Rural Dealers covering all Districts of India.

 SAIL has its own R&D centre & Management Training Institute at Ranchi with state of art facilities. Centre for Engineering & Technology provides technical solutions for projects and design engineering. SAIL has 103 thousand employees on its rolls as on 31.12.2012 Product quality is established in the international market - Exports to around 20 countries including EU, Middle East, SE Asian & neighbouring countries

Authorized Capital: INR 5,000 crore (US$ 909 million), Paid up capital: US$ 751 million (INR 4,131 crore 85.82% of shares owned by Government Market capitalisation of Rs. 39,653 crore (US$ 7.2 billion).

SAIL was awarded the Navratna Status in 1997 and was upgraded as Maharatna in 2010.

VISION
To be a respected world class corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction.

IMPORT PROCEDURE IN STEEL AUTHORITY

Objective of project
To know the various procedure in importing coal And payment in foreign exchange.

DATA COLLECTED As the data collected from secoundary sourses..

 In exercise of the powers conferred by the Foreign Trade (Development & Regulation ) Act,1992, the Government has issued the following Rules & Orders:

(i)Foreign Trade (Development & Regulation ) Act,1993, (ii)Foreign Trade(Exemption from Application of rules in Certain Cases) Order 1993; (iii)Notifications under Foreign Trade (Development & Regulation) Act,1992.

Import Trade Organization Ministry of Commerce Ministry of Commerce is the overall incharge of foreign trade in India.

Director General of Foreign Trade The office of Director General of Foreign Trade (DGFT) is responsible for the execution of the Import- Export Policy of the Government of India. It has subordinate offices primarily responsible for issue of Import Export Code numbers, grant of Import Export License of various types

 Custom Authorities Customs clearance of the imported goods is done by the customs authorities

IMPORT PROCEDURE
Selecting the Commodity Proper selection of the commodity will depend upon various commercial and legal considerations Selecting the Overseas Supplier Imports can be made from any country of the world except Iraq.

 Credit worthiness of the Overseas Supplier The credit worthiness of the overseas supplier, his capacity to fulfill that contract etc. should therefore, be properly verified before entering into a contract with him Finalising terms of Import Modes of Settlement Payment Advance Payment Payment/Acceptance against documentary collection Payment under Letter of Credit

Procedures undertaken in SAIL for Importing Coal

Coking coal is required for manufacture of coke in the coke-ovens in the manufacture of steel making by integrated steel plants. Coke is charged in the Blast Furnaces in the process of hot metal production. SAIL has a total requirement of approx. 15 million tonnes of coking coal. Out of this, approx. 10 million tonnes of coking coal is required to be imported and the balance is tied up with indigenous sources, the major suppliers being BCCL and CIL

SAIL imports the following qualities of coking coal : Freshly mined Washed/Unwashed Prime Quality Hard Coking Coal (Size 0-50 mm) Freshly mined Washed/Unwashed Soft Coking Coal (Size 0-50 mm)

 Long Term Agreements : The requirement of imported coking coal is met largely through long term agreements SAIL imports coking coal under Long Term Agreements with suppliers from Australia, U.S.A and New Zealand A now source of Soft coking coal is Indonesia

 Global Tender: Global tenders are invited to meet the balance requirement of imported coking coal and orders are finalized after a careful tech no-commercial evaluation of the offers the conformity of offers to tender terms and conditions and on the basis of price offered

SHIPMENT PLANS AND LEAD TIME

Voyage time -The average time taken for a shipment to reach Indian ports of discharge from various loadports varies with the distance as shown below : Australia (East Coast): 18 days New Zealand: 20 days U S.A : 30 days Indonesia :10 days China :14days

Ports of loading
Exporting Countries AUSTRALIA UNITED STAES OF AMERICA NEW ZEALAND CHINA INDONESIA

Discharge Ports
All shipments of coking coal for SAIL are discharged at one or more of the three major ports on the East coast of India, Visakhapatnam, Paradip Haldia

RATES ON THE PRICE OF IMPORTED COKING COAL

Payment for ail imports of coking coal are made in US Dollars. since the price of coal in the international market is quoted in US Dollars. The fluctuations in the US Dollar - Indian Rupee exchange rate affect the total outflow towards payment to suppliers.

 Finances are usually made through the Letter of Credit from State Bank of India, Canara Bank etc. In certain cases Open Payment Methods are also used wherein the payment is made when the material is received through e-banking

ANALYSIS
An attempt has been made to analyse the different aspects related to the study viz. the indigenous coal availability scenario, the procurement process of imported coking coal, logistics involved in the process of import and inland transportation, constraints at ports, etc. And Foreign exchange

Thank you