November 23, 2006	Thursday	Ziqa'ad 1, 1427

ISLAMABAD, Nov 22: The Board of Directors of Pakistan Steel Mills Corporation here on Wednesday approved Rs1.4 billion ($23 million) for carrying out "critical repairs" in order to increase mills' production from 62 per cent to 90 per cent annually.

"We need to immediately enhance mill's production and remove its Rs1.8 billion operating losses by June 30, 2007", said Pakistan Steel Chairman Maj-Gen (retd) Mohammad Javed.

He told Dawn after the board meeting that the most important task before him was the repair of coke oven batteries so as to enhance the production capacity of the mills.

Ultimately, he pointed out, the plan is to achieve 100 per cent production as early as possible.

Responding to a question, the PS chairman said that the whole repair and maintenance work would be achieved in five separate segments. He said it would take about 22 months to achieve a complete revamping in the mills at a cost of Rs4 billion.

He said that the board's meeting did not discuss the privatisation of the mills as the issue was still pending in the Supreme Court. Since the government has submitted a review petition in the apex court, no decision was being taken on the disinvestment of the mills, he added.

"This issue of privatisation will be decided by the federal government but we in the mills are trying to remove its losses and make it a viable organisation," Mr Javed said.

Asked whether he has submitted any report to the government about the past management of the mills, the PS chief said: "There is no such thing; I was in the capital to attend the meeting of the board of directors."

Mr Javed said since several board members lived in the capital, this time its meeting was held here. He said two new members would soon be appointed to have a complete 12-member board.

The ministry of industries and production had allowed the new management to carry out necessary repair and maintenance work to avoid any major breakdown.

The issue of much talked about revamping, including expanding the mills' capacity from 1.1 million tons to 1.5 million, will be considered after a decision on the review petition. The mills' management has been directed to ensure smooth and safe functioning, especially by getting repaired the coke oven battery and steel converters.

The new management of mills has also been allowed to have the automation in the hot strip mill along with expanding the jetty.

In reply to another question, Mr Javed said that a package was needed to be implemented to cover revenue shortfalls by achieving 90 per cent plus capacity utilisation in the mills.

The PS chairman said still the mills had to pay back its Rs7.5 billion banks' loan for which it needed to generate more revenues.