Indian Ministry of Steel to find responsibles of delay in modernization
According to market reports, the Parliamentary Standing Committee on Industry of India requested Ministry of Steel to take action regarding the defects in modernization of certain plants of Steel Authority of India Ltd (SAIL) rather than wasting time. Previously, Indian government accepted modernization projects of two of SAIL's plants, namely Durgapur Steel Plant (DSP) and Rourkela Steel Plant (RSP), as well as BSP, at an estimated cost of around Rupees 27 billion ($585 million) and Rupees 25 billion ($540 million). However, both projects which were fulfilled in March 1998 and November 1999 cost almost Rupees 51 billion (approx. $1 billion). According to the Baijal Committee, said to be formed by the Ministry of Steel, these financial results were the cost overruns deriving from mismanagement among concerned parties causing deferment in effecting projects. The Parliamentary Standing Committee of Industry, claiming parties responsible for defects to be penalized, requests the Ministry to specify these parties within the shortest possible time.