The Board of Directors has the pleasure of presenting the
53^rd Annual Report of Steel Authority of India Limited (SAIL,
the Company) together with the Audited Standalone and
Consolidated Financial Statements for the Financial Year
ended 31^st March, 2025.

A. FINANCIAL REVIEW

Financial Results    (Rs. crore)

Your Company achieved the Sales Turnover of Rs.1,01,716
crore during the Financial Year (FY) 2024-25, which is lower
by 2.7% as compared to corresponding period of last year
(CPLY) mainly due to lower NSR of 7%, partial offset by
higher Sales Volume of 3%, revision of provisional Rail price
for FY 2023-24 and 2024-25. During the FY 2024-25, the
lower profitability as compared to CPLY is mainly on account

of lower Net Sales Realisation of Saleable Steel; lower sale of
coal chemical & by-products; lower Rail price revision impact;
higher usage of Power, indigenous coal, increase in burden,
etc.; lower stock valuation rate; higher expenditure on Repair
& Maintenance, water charges & cess on water pollution,
Insurance, security expenses; loss on foreign exchange
fluctuation; higher interest charges & depreciation; etc.

The lower profitability was partially offset by lower imported
coal prices; better techno-economic parameters viz.
improvement in BF productivity, Coke rate, Specific Energy
consumption; lower usage of imported coal, limestone,
etc.; lower expenditure on stores & spares, salary & wages,
royalty rates; income from trading activities; higher dividend
income; etc.

Your Company continued its thrust on judicious fund
management with timely repayment of loans including
interest as well as advance planning and timely action for
future fund raising, etc. to meet its operational and strategic

growth objectives. The Company had borrowings of Rs.
36,934 crore as on 31^st March, 2025 vis-a-vis Rs.36,315 crore
as on 31^st March, 2024 (INDAS). The debt equity ratio of the
Company as on 31^st March, 2025 at 0.66:1 was almost at the
same level of 0.67:1 as on 31^st March, 2024. The net worth of
the Company increased to Rs.55,656 crore as on 31^st March,
2025 from Rs.54,131 crore as on 31^st March, 2024.

The Board of Directors of your Company has recommended
a Final Dividend of Rs. 1.60 per equity share, subject to
approval of Members in the ensuing Annual General Meeting
of the Company. No amount has been transferred to General
Reserve during the year under review.

M/s. CARE Ratings and M/s. India Ratings, RBI approved Credit
Rating Agencies, assigned 'CARE AA-Outlook: Stable' and 'IND
AA-Outlook: Stable' ratings respectively for SAIL's long-term
borrowing programme.

B. OPERATIONS REVIEW

Safety First: Your Company is committed to the safety of
its employees and the people associated with it, including
those living in the neighbourhood of its Plants, Mines and
Units. SAIL Safety Organization (SSO) centrally monitors
and guides the Safety Promotional and Fire prevention
activities undertaken at different Steel Plants/Units/Mines/
Stockyards. SSO formulates and prepares appropriate Safety
Policies, Procedures, Systems, Action Plans, Guidelines,
etc. and follows up for their implementation, and thereby,
helps in providing Accident-free Work Environment at
the workplace. Plants are ISO-45001 certified, which is an
advanced Safety Management System and as a compliance
to this, Hazard Identification and Risk Assessment (HIRA)
has been conducted for most of operation & maintenance

activities using techniques like Bow-tie/HAZOP studies, etc.
as applicable and appropriate risk control measures have
been formulated and implemented to either eliminate the
risk or bring it to acceptable limits.

Safety aspects, specific to the jobs, have been incorporated
in Standard Operating Procedures & Standard Maintenance
Procedures (SOPs & SMPs) which helps in integrating safety
with operations and maintaining necessary technological
discipline. System of conducting safety audits and inspections
is in vogue and observations, if any, are complied with at
the earliest. Prioritising safety foremost, the Company has
engaged Safety Management Consultant for Safety Culture
Transformation, at its Plants in Bhilai, Bokaro, Rourkela,

Durgapur and Burnpur. Thrust is being laid on developing
safety governance structure, framing technical standards,
improving safety through behavioural interventions,
containing risk in high hazard processes, etc. Relentless
efforts are also being made by Plants and SSO for competence
building in the area of Safety Management through regular

HRD interventions, LEO workshops, webinars, etc., in-house
as well as through external experts, on areas of concern
covering Heads of Shops, Line Managers, Safety Personnel
and Trade Union leaders. System of imparting safety training
at induction and on-the-job trainings to contract workers
prior to start of jobs, exists in all the Plants and Units.

SSO has recently launched many new initiatives to reach the
lowest strata of the Company. A initiative called 'Suraksha
Manthan' has been taken up for achieving Zero Fatality,
with the participation of Heads of Safety of all Plants/Units,
where learnings from incidents/ Near Miss cases, good safety
practices across Plants/Units are discussed and followed up
for its implementation. In the beginning of every training
programme at Management Training Institute (MTI), the
participants are sensitized on the importance of safety
through a customized module titled 'Sparsh' A compilation
titled 'Samiksha' of incidents/accidents that occurred in the
past has been prepared and circulated as ready reference
for all the Plants & Units. 'Sukriti' - a compendium of good
practices prevailing in the steel industry, has been prepared
with a view to promote benchmarking with the best practices
of the industry.

In addition to this, 'Suraksha Samvad' - a VC session is being
conducted after any major incident or Near Miss case among
concerned domain experts from all the Plants & Units, with
a view to discuss the root causes, share good practices of
each other and bring out mitigation measures through
technical interventions. Also to bring all the steel producers
of the Country with their domain experts along with safety
personnel under one platform, SSO has constituted Safety
Operating Committee to address the theme-based issues.

Meetings of the Committee are held yearly in different
Plants with new themes. In this regard, 'Safety Quest', a new
initiative has been introduced with a view to learn the good
safety systems & practices from safety experts from different
spectrums of the industry. Safety circle, an innovative scheme
for developing safety culture across the Organization by
involving front line employees through hazard identification,
risk assessment & control, as a bottom up approach, has also
been introduced.

Benefits of technology are being leveraged by extensive
utilization of IT in the area of Safety Management, by way
of web portals for sharing important information, safety
suggestions, etc. Good Safety Practices prevailing in the
Plants & Units and other industries are captured and circulated
among all for horizontal deployment, knowledge sharing
and bringing improvement in the Safety Culture. A multi¬
disciplinary Safety Engineering Department exists in each of
the Steel Plants and Mines to look into their respective safety
requirements. The emphasis is on Systematic Approach to
Safety Management. SSO is also managing the secretariat
of the Joint Committee on Safety, Health & Environment in
the Steel Industry (JCSSI), a bipartite forum which addresses
Safety, Health & Environment issues of the Steel Plants with
active involvement of Management and Central & Plant
level trade unions and provides guidelines to the member
organizations. Acknowledging the importance of Safety,
the activities and measures undertaken are reviewed at the
highest level by the Board Sub Committee on Health, Safety
& Environment.

SAIL improved its production volumes with lesser assets
through improved techno-economic efficiencies by driving
enablers at Blast Furnaces such as improving health of
furnace stoves, commissioning of new stoves, enhancing
oxygen enrichment, increased pulverised coal injection,
improvement in Fe content in burden by usage of Pellets
in burden and better quality ore fines. During FY 2024-25,
SAIL achieved Hot Metal, Crude Steel and Saleable Steel
production of 20.31 MT, 19.17 MT and 17.94 MT respectively.
In addition to this, your Company also achieved, its best
annual performance in respect of Techno-economic
parameters like Coke Rate at 421 kg/thm, CDI Rate at113 kg/
thm, BF Productivity at 2.02 t/m³/day and Specific Energy
Consumption at 6.26 G.cal./tcs owing to focus on enhanced
capacity utilisation of bigger Blast Furnaces (BF) and
optimisation of BF operations.

and commercialization. The continuous activities in respect
of product development have led to development of 23 new
Steel Products during FY 2024-25.

At Bhilai Steel Plant (BSP), Hot Metal, Crude Steel and
Saleable Steel achieved production of 5.880 MT, 5.658 MT
and 5.180 MT respectively. BSP recorded its highest-ever
annual production across several units, including Finished
Steel of 4.707 MT, 2.81 MT of Hot Metal at Blast Furnace-8,
3.575 MT of Crude Steel at Steel Melting Shop-3, and 1.009
MT at Bar & Rod Mill (BRM). The contribution to Indian
Railways is highlighted by the fact that record dispatches
of Long Rails (260m panels) of 1132 Rakes was achieved
during the FY 2024-25. Further, out of 1132, 1077 Rakes were
dispatched from BSP and the balance 55, from the Flash-Butt
Welding Plant (FBWP) at Sabarmati, Ahmedabad. On techno¬
economic front, BSP achieved the highest ever CDI Rate at
134 kg/thm and lowest ever Specific Energy Consumption
at 6.30 G.cal./tcs & Coke Rate at 430 kg/thm during the FY
2024-25.

Durgapur Steel Plant (DSP) recorded the production of Hot
Metal at 2.50 MT, Crude Steel at 2.26 MT and Saleable Steel
2.15 MT. The Plant recorded highest ever production from its
Bloom cum Round Caster BRC of 6.26 lakh tonne, 5.57 lakh
tonne from Medium Structural Mill (MSM), 4.28 lakh tonne
from Merchant Mill (MM) and of 1.126 MT of Finished Steel.

Rourkela Steel Plant (RSP) registered production of Hot
Metal at 4.34 MT, Crude Steel production at 4.04 MT and
Saleable Steel production at 4.08 MT in the FY 2024-25. In
addition to this, BF-1 & 5 achieved highest ever production of
1.005 MT and 3.13 MT respectively. Similarly, New Plate Mill
(NPM) at 9.32 lakh tonne, Hot Strip Mill-2 (HSM-2) at 2.557 MT
and Steel Melting Shop-2 Caster-3 at 1.634 MT also registered
highest ever annual production. With regard to techno¬
economic parameters, RSP achieved the lowest ever Specific
Energy Consumption @5.92 G.cal./tcs. and Coke Rate at 391
kg/thm and highest Blast Furnace Productivity @2.31 t/m³/
day during the FY 2024-25.

Bokaro Steel Plant (BSL) registered the highest ever
production of Hot Metal at 4.960 MT and Crude Steel at
4.512 MT, surpassing the previous best of 4.726 MT and 4.309

MT respectively, achieved in the FY 2023-24. Saleable Steel
production for the year stood at 3.860 MT. New SMS (with
Concast Route) at 1.03 MT, Cold Rolling Mill-III at 7.35 lakh
tonne and total Cold Rolled Saleable production at 1.18 MT
also recorded highest ever production in FY 2024-25. The
techno-economic parameters like CDI Rate @85 kg/thm, BF
Productivity @ 1.91 t/m³/day, Coke Rate @445 kg/thm and
Specific Energy Consumption @6.52 G.cal./tcs. were best ever
in the FY 2024-25.

At IISCO Steel Plant (ISP), the production of Hot Metal,
Crude Steel and Saleable Steel was at 2.623 MT, 2.437 MT
and 2.330 MT respectively in the FY 2024-25. In addition to
this, Universal Section Mill at 0.498 MT also achieved the best
ever production during the FY 2024-25. On techno-economic
front, ISP achieved the best ever Coke Rate @372 kg/thm,
CDI Rate @134 kg/thm, BF Productivity @ 2.27 t/m³/day and
Specific Energy Consumption @6.16 G.cal./tcs. for the year.

During FY 2024-25, Alloy Steels Plant enhanced Crude Steel
production through process modifications and logistical
improvements. Salem Steel Plant developed new Grades
and Finishes to meet customer requirements. Meanwhile,
at Visvesvaraya Iron and Steel Plant, efforts are underway to
identify effective measures to restore the Plant's profitability.

In FY 2024-25, a strong emphasis on maximizing productivity
through the optimal utilization of efficient assets, the
phased elimination of outdated and inefficient ones, and
the implementation of strategic process improvements has
established a robust foundation for achieving sustained
success in the years to come.

Power

Your Company has always strived to maximize its captive
power usage in view of reliability of power supply as well as
availability of power at optimum cost. During the FY 2024-25,
about 67.53% of the total requirement of 1412.71 MW was
met from the Captive Power Plants, as against 65.25% in the
previous year. With an objective to optimize the cost, SAIL
has been actively procuring power through Open Access
route since such opportunity was introduced in Electricity
Act, 2003. Continuing the legacy, this year too, SAIL Plants
procured about 255.44 Million Units (MUs) of power through
Open Access route which also included Green (renewable)
power procured through Short Term Open Access. A major
contributor to Green Open Access Power was 54.80 MUs of
bagasse-based power from Rajshree Sugar Mills, Coimbatore,
through Power Exchange for Salem Steel Plant during the
sugarcane crushing season. 88.39 MUs were procured from
the Power Exchange and 100.21 MUs were wheeled from PP-
3, Bhilai to SSP. RSP procured 8.15 MUs Conventional Power
and 12 Mus Green Power from the Exchange. Your company
was able to save about Rs.44.43 crore in the FY 2024-25 by
procuring cheaper power through Open Access route.

With the objective of enhancing the share of captive power
and ensuring supply of reliable power at optimum cost, both
the 20 MW Units of Power Plant-III at Durgapur Steel Plant
(DSP) of NTPC-SAIL Power Company Ltd. (NSPCL), a Joint
Venture Company of SAIL & NTPC Ltd., were stabilized. The
New Power & Blowing Stations (PBSs) at Integrated Steel
Plants at Bhilai, Rourkela and Burnpur are cogeneration Plants
that run entirely on process gases (Blast Furnace & Coke
Ovens gases), generating 8.64% of total power requirement
of your Company. The old Captive Power Plants/Power
Blowing Stations at Bhilai, Rourkela, and Durgapur also utilize
the process gases to the maximum, using minimal amounts
of coal. In addition to this, process gases are also provided to
NSPCL (a JV of SAIL and NTPC) and Bokaro Power Supply Co.
Ltd. (BPSCL) (a JV of SAIL and Damodar Valley Corporation
(DVC)) for substituting coal as a fuel to the optimum level
feasible vis-a-vis operational efficiency. LD gas is being
mixed with BF gas at BPSCL. Further, at NSPCL's Power Plant-
II, BSP, CO gas pipeline for Boiler-3 has been connected to the
new CO gas header. Modification is proposed in the boilers
of Power Plant-II, BSP so that coal usage shall be further
reduced by utilizing BF gas in the boilers, thus improving
carbon footprint.

An important component of Grid Power in DSP and IISCO
Steel Plant (ISP) is Green Power, introduced by the utility
DVC. Since 1^st September, 2024, both the Plants have been
procuring 50% of their Grid Drawl as Green Power from DVC.
A total of 373.79 MUs was procured by ISP (246.68 MUs) and
DSP (127.11 MUs) during FY 2024-25, which shall help reduce
CO₂ emissions in the steel-making process.

Your Company has always focussed on its approach towards
achieving better performance parameters with respect to
usage of power purchased from utilities and capitalizing
to maximize the rebates and incentives available in the
power tariff for achieving higher load factor, power factor,
etc. During the FY 2024-25, Rs.80.37 crore was received as
incentives and rebate in the power tariff from grid utilities.

Besides above, optimization of electricity consumption in
various steel making processes is a major thrust area of SAIL
Plants for lowering the power consumption per tonne of
production of saleable steel.

As a responsible corporate house, your Company has
given adequate emphasis on development and usage of
renewable power sources with focussed approach on Roof
Top Solar (RTS) Power Plants. A capacity of 8.44 MWp of Roof
Top/Ground Mounted Solar power plants has already been
installed across SAIL Plants and Units. Further, SAIL's first
Floating Solar Power Plant of 4 MWp at ISP commissioned
in January, 2024, produced 5.51 MUs of green power during
FY 2024-25. In addition to this, a 15 MW capacity Floating
Solar Power Plant over Cooling Pond in BSP through NSPCL
is under installation. A capacity of 196.75 MW of ground-
mounted/floating/rooftop solar plants at various Plants/
Units of the Company across the Country has been identified
for installation. Solar projects with potential of 339 MW are
being examined for techno-commercial feasibility. Besides
this, about 7 MW renewable bagasse-based power being
procured for Salem Steel Plant and the under construction 10
MW Small Hydro Electric Plant over Mandira Dam, Rourkela,
in Joint Venture with Green Energy Development Corporation
of Odisha Ltd. (GEDCOL) are progressively enhancing your
Company's green footprint.

Raw Materials

During the FY 2024-25, total requirement of iron ore was
met from the captive sources. Your Company's captive
mines produced about 33.785 million tonnes (MT) of iron
ore. However, in case of clean coking coal, out of total
consumption of 18.74 MT, about 2.415 MT was met from
indigenous sources (Coal India Limited & captive sources)
and for the balance requirement of coking coal (16.32 MT),
the Company had to depend on imports due to constraint in
availability of required quality, within the Country.

In the FY 2024-25, production from the captive collieries of the
Company, including middling & jhama, was about 0.686 MT,
out of which 0.588 MT was raw coking coal and balance 0.098
MT was non-coking coal. In case of fluxes, around 1.311 MT
of limestone and 0.404 MT of dolomite were produced from
captive sources. For thermal coal, your Company depends
entirely on purchases from Coal India Limited, except for
small quantity of non-coking coal including middling of 0.80
MT produced from the captive mines.

Selling of Iron Ore from Captive Mines in Open Market

About 0.754 MT of iron ore was made available in the open
market from the Mines in the State of Odisha. Further,
approval from Jharkhand State Government for selling of
iron ore in the open market is still awaited.

Grant of Environment Clearance (EC)

•    Tasra Coking Coal Washery Plant: Tasra Coking
Coal Washery Plant with 3.5 Million Tonne Per Annum
(MTPA) capacity of 21 Ha area, located in Sindri, District
Dhanbad, Jharkhand was granted EC vide letter dated
14^th November, 2024.

•    Jhillingburu-I Lease of Gua Ores Mines: EC for re¬
opening the Mine with enhancement of production
capacity of manganese ore from 42,000 TPA to 61,362
TPA has been granted on 23^rd March, 2025.

•    Pandridalli & Rajhara Pahar Iron Ore Lease of BSP:

State Environment Impact Assessment Authority
(SEIAA), on 30^th September, 2024 granted EC for Iron Ore
Production Capacity 3.50 MTPA ROM, Waste 9.1 MTPA
and Total Excavation of 12.60 MTPA.

Grant of Forest Clearance (FC)

Government of Chhattisgarh vide letter dated 28^th November,
2024 has extended the validity of FC for the diversion of
100.76 hectares of forest land under the Rajhara Hill Lease
and 283.60 hectares of forest land under the Pandridalli &

Rajhara Pahar Lease of Bhilai Steel Plant until 27^th April, 2043
and 31^st May, 2043 respectively.

Extension of Lease Period/Reservation Notification
Period

Extension for Lease Period of Pandridalli & Rajhara Pahar
Lease (220.42 Ha) upto 27^th April, 2043 was granted on 10^th
July, 2023 and the Lease Deed was executed on 4^th December,
2024.

Appointment of MDO for Development of 7 MTPA Iron
Ore Mine at Taldih, Odisha

Mine Developer cum Operator (MDO) was appointed for
development of 7 MTPA Iron Ore Mine at Taldih and Coal
Mining Service Agreement (CMSA) was signed on 27^th
November, 2024. MDO shall install a new plant and supporting
infrastructure, likely to finish within two years, with mining
operations starting in the third year. The production capacity
will increase from 2 MTPA to 7 MTPA.

Valuation of Compensation for Payment to the Prior
Allottee (SAIL) for Parbatpur Coal Mines

Nominated Authority under the Ministry of Coal on 16^th May,
2025 issued a provisional compensation order of Rs.105.35
crore for the de-allocated Parbatpur Coal Mines. This amount
is lower than the Rs.140.25 crore, originally claimed by
SAIL, the prior allottee. SAIL is currently engaging with the
Nominated Authority to seek a revision of the compensation
amount stated in the provisional order.

Jharkhand High Court Judgement in Common Cause
Matter

Jharkhand High Court vide order dated 4^th March, 2025 set
aside Rs.1,750 crore penalty notices issued post the Common
Cause judgment dated 2^nd August, 2017 and ordered a refund
with interest. SAIL had deposited Rs.200 crore in December,
2017.

Capacity Expansion of Gua Ore Mines

SAIL plans to expand the capacity of the Gua Mine from 4
MTPA to 10 MTPA, along with setting up Beneficiation and
Pelletization Plants and Railway Sidings through EPC, BOO,
and MDO models. A consultant is currently preparing the
Tender Specifications, and Notice Inviting Tender (NIT) for
MDO has been issued on 22^nd July, 2025.

Development of Tasra Coal Mine

Tasra Coal Project, being developed as a 4 MTPA
opencast mine, has progressed significantly following the
appointment of the Mine Developer cum Operator (MDO)
on 8^th September, 2023. MDO is responsible for undertaking
all pre-development activities, securing statutory approvals,
assisting in land acquisition and R&R, constructing a
Coal Washery within three years, and ramping up mining
operations to 4 MTPA from fifth year onwards.

Significant progress has been made by March, 2025, including
the grant of Environmental Clearance (EC) and Consent
to Establish (CTE) for a 3.5 MTPA Coal Washery, approval of
the Site-Specific Wildlife Conservation Plan, and substantial
advancement in land acquisition for the Mine area, R&R
colony and washery.

Land parcels include Private land, BCCL land, and FCIL land,
for which lease agreements, transfer proposals, and eviction
proceedings are underway. The project is strategically
advancing through coordination with multiple Government
departments to ensure timely implementation of key
components of mine development.

Sales & Marketing

During the Financial Year (FY) 2024-25, your Company
achieved Saleable Steel sales volume of around 18 million
tonnes (MT), registering a growth of about 4% over previous
year. With Home Sales of 17.8 MT for Mild Steel, there has
been a growth of about 5.8% over FY 2023-24. While the
overall exports declined over FY 2023-24, the Company
succeeded in making inroads for exports of Cold Rolled
products and new age structural from the new state-of-art
Universal Section Mill to Nepal, amidst various challenges in
the international market. The muted demand in Europe and
economic slowdown in China dampened the international

steel market sentiments. SAIL consciously aligned towards
enhancing Home Sales, where realizations were better.

During FY 2024-25, Global steel price trends remained
mixed due to a combination of local and global issues.
Going forward, the movement of global steel prices will be
contingent upon how the following issues pan out: (i) Global
economic growth; (ii) China's property slump; (iii)Stagnation
in euro zone; (iii) Trade flows/tariffs & barriers, etc.; and (iv)
Prices of raw materials. In Calendar Year 2024, World Crude
Steel Production was 1,882.6 MT, which is drop of 0.8%
over 2023 production of 1,897.9 MT as per World Steel
Association. China, the biggest producer, saw its output drop
1.7 per cent from 1,022.5 MT in 2023 to 1,005.1 MT in 2024.
India's production increased 6.3 per cent from 140.8 MT in
2023 to 149.6 MT in 2024. Indian steel prices witnessed a late
uptick in FY 2024-25, resulting from the recommendation of
Safeguard Duty on imports of flat steel by GoI.

Consumption of Finished Steel in India in FY 2024-25 was
about 152 MT, a growth of 11.5% over previous year, while
Finished Steel production was 146.56 MT, which is a growth
of 5.3% over FY 2023-24. The Building, Construction and
Infrastructure continued to be focus of growth in steel sector
with substantial Capex spending on infrastructure by the
Government of India. A total budgetary provision of Rs.10.18
lakh crore had been made for Govt. Capex in the Union
Budget 2024-25, to boost growth of Infra and Construction
segment.

Continuing the journey for increasing sales of value added
and special quality products to the consumers, SAIL's basket
in FY 2024-25, inter-alia, including HSFQ 550 (High Strength
Formable Steel) for automotive components, HT (High
Tensile) LPG grade IS 15914 HS 345 2.2mm x1160mm for
LPG cylinders, API PSL2 X46-X60 for Oil & Gas Pipeline, ASTM
A572 Gr 65 with Si 0.06% for monopole, Wider (1600 mm &
above) IS 11587 WR-Fe490H for Wagons, High Tensile HRC
in E350BR in 2/2.2x1200 mm for Solar Industry; 28MnB5 and
similar grades for Agriculture implements; High Strength CR
in 440/470/ 550 / 600 LA; IS 18316 CR for stamping industry;
LRPC (Low Relaxation Pre-Stressed Concrete Strands) grade
in 11mm/12mm used in pre-stressed concrete girders for
Roads, Bridges & Flyovers, Metros, etc. have been developed
at the Special Steel Plants of your Company.

The brand "SAIL SeQR" for TMT has been further strengthened
by clocking sales of 12.85 lakh tonnes during FY 2024-25,
compared to 8.47 lakh tonnes in the previous year, thereby
registering a growth of 51%. In addition to this, brand'NEX' for
Structurals is also being promoted. Your Company is working
towards expanding the 2-Tier and 1-Tier distributorship
networks across India, which will further strengthen our
position in B2C space. 8 more distributors were added in
1-Tier during the FY 2024-25, reaching a total of 64 as on
31^st March, 2025, and thereby, achieving sales of 15.54 lakh
tonnes through Tier-I Distributors. With regard to 2-Tier, for
giving boost to sales through Retail Channel, SAIL has a
strong network of distributors and dealers across the Country
with 59 distributors and 4768 dealers as on 31^st March, 2025.
Further, the Company has achieved retail sales of 13.27 lakh
tonnes of TMT during FY 2024-25, with a growth of 40% over
previous year.

Under "Mission Poorvodaya" Scheme by Ministry of Steel, an
Incentivization Scheme-"Ispati Ilakon Ka Vikas-SAIL Ke Saath"
was introduced by SAIL for development of MSMEs based in
the districts in which its Integrated Steel Plants are located.
During the FY 2024-25, more than a lakh tonne of various
steel products have been sold to these MSMEs.

During the FY 2024-25, your Company has supplied 2.4 lakh
tonnes steel to NSIC/SSIC, with growth of 9% over previous
year. Further, in line with National Steel Policy, to improve per
capita consumption of steel in the Country, more than 400
"Gaon Ki Ore" workshops were organised during FY 2024-25
across India for increasing steel usage. In addition to this, some
promotional activities were undertaken and the significant

ones include: SAIL SeQR promotion during Mahakumbh 2025
at Prayagraj through high sky balloons, electric poles and
gantry gates; Water Metro Branding in Kochi; Advertisements
at Airports, Trains & Buses; Hoardings & Wall Paintings; Road
Barricade Branding in collaboration with Bangalore Traffic
Police; Post Office Campaign Run in Kerala in association
with India Post; Brand Promotion through participation &
advertising in Krishi Darshan Expo, Hissar; Brand Promotion
in Healthon Half Marathon at Patna; Sponsorship as "Co-Title
Sponsor for E-Summit' 25" at MANIT, Bhopal; Participation
in Steel Construction Expo in Mumbai; Partnered in Annual
Business Festival of IIT Mumbai (AVENUES); Branding in train
from Vishakapatnam to Kirandul via Araku; Reflective Sticker
Branding of SAIL-SeQR TMT in sides and back of trailers at
warehouses in NR; SAIL SeQR RUN organised in Chennai with
about 2700 participants; Sponsorship in Karnataka Premier
League; Hoarding Campaign of SeQR Brand of SAIL TMT in
Howrah and Hooghly districts.

The Warehousing Group of Marketing Organisation has
been using Integrated Vehicle Tracking System in all
Warehouses & CA/WLA units, ensuring real time tracking
of the consignments. Spot-bidding for door delivery was

executed in all the Warehouses & CA/WLA units for getting
faster competitive freight rates, efficient transportation
for faster door delivery, etc. In addition to this, towards
"Customer Experience Enhancement", increased adoption
of Enterprise Portal by customers was accomplished, with
more than 3800 customers being on-board. Further, Annual
Demand Registration for new prospects in Enterprise Portal
was through online mode for easy access and transparency.
With the help of INSDAG, TMT Estimator has been provided
on SAIL-Suraksha web site for the estimate of size-wise TMT
required for building. The system has been integrated with
SBI for reflecting the payments received from the customers.

Your Company has been a leader in contributing to nation
building since inception by servicing the requirements
of various projects of National and Strategic Importance.
During the FY 2024-25, SAIL has supplied significant quantity
of Steel to Projects in Sectors like Power, Road, Rail, Water,
Airport Infrastructure, Oil & Gas, etc., the major projects being
Dhubri to Phulbari Brahmaputra Bridge in Assam; RVNL Metro
Projects; Sevoke Rangpo Railway Tunnel Project in Eastern
Region; Ganga Expressway Project -Meerut to Budaun,
Rishikesh Karnprayag 125 Km Rail Link; Vishnugad Pipalkoti
444 Mw Hydro Electric Project; Mahakumbh'25- Prayagraj;
Central Vista Enclave; Delhi Metro; Kanpur Metro; Lucknow-
Kanpur Expressway; Bundelkhand Prayagraj Expressway;
Bharat Mandpam-ITPO; JIA-Delhi Mumbai Expressway Link
Road in Northern Region; Jal Jeevan Mission; ISP Parwati
Phase-3 & 4 River Linking Project; ISP-Kalisindh(Rajgarh and
Shajapur) River Linking Project & Sanwer Irrigation Project;
Mumbai-Ahmedabad High Speed Rail; Versova Bandra Sea
Link Project in Western Region; and Kalpakkam Nuclear
Project, Chennai Metro Rail Ltd., HMWSSB Sunkhishal Water
Intake Project, Kalaburgi Cement Project, Kaleshwaram Lift
Irrigation Project, Kaleshwaram Water Pipeline Project, Real
Estate projects, etc. in Southern Region; thus encompassing
diverse segments.

Your Company is fulfilling it responsibility in building and
nurturing strategic orientation towards strengthening
& deepening relationship with customers & prospects,
upgrading products and services basket through branding,
promotions, customized services, research, process

improvements, digitalization, etc. SAIL has been nurturing
a leadership position in consumer mind space and is poised
to meet the needs of the evolving market requirements and
increasingly demanding business scenario with focus on
profitability and enterprise value.

Public Procurement Policy for Micro and Small Enterprises

As required by the Public Procurement Policy of the
Government of India, the information on procurement from
Micro & Small Enterprises during FYs 2024-25 and 2023-24 is
given below:

#without considering imports, proprietary and high value
items which cannot be procured from MSEs. For 2024-25,
procurement data includes procurement of services.

Modernisation & Expansion Plan

A capital expenditure of Rs.5,879 crore has been incurred
during FY 2024-25 against the Revised Budget Estimate of
Rs.5,700 crore. Capex planned for the FY 2025-26 is at Rs.7,500
crore. The details of Addition, Modification & Replacement
(AMR) Schemes under implementation are given in the
Management Discussion & Analysis (MD&A) Report.

In line with National Steel Policy, 2017 of Government of
India, your Company has envisaged Phase-1 Expansion of
its Integrated Steel Plants at Burnpur, Durgapur, Bokaro,
Rourkela and Bhilai for enhancing its Crude Steel Capacity
from existing ~19 MTPA to around ~35 MTPA through
Augmentation and Expansion by 2030-31. In this regard, after
Stage-I approval of capacity Expansion, tendering activities
are under progress at IISCO Steel Plant and Durgapur Steel
Plant and final tender specifications are under preparation at
Bokaro Steel Plant.

Manpower & Labour Productivity during last 10 years

B. HUMAN RESOURCE MANAGEMENT REVIEW

Your Company recognizes contribution of its Human
Resources in providing it the competitive advantage. The
Company has achieved its present level of excellence through
investment in its human resource, where skill and knowledge
constitute the basis of every initiative- be it technology or
innovation. Developing skills and capabilities of employees
to improve manpower utilization and labour productivity is
the key thrust area of Human Resource Management (HRM)
in the Company.

Your Company provides an environment conducive for
learning, encourages adoption of best practices in every area
and nurtures creativity and innovation among employees.
Human Resource initiatives in SAIL are focused on developing
team spirit, employee empowerment and their involvement
in various improvement activities. Strategic alignment of
HRM to business priorities and objectives has facilitated
smooth transition to 'state-of-the-art' technology in the
Modernization and Expansion Projects.

Enhanced Productivity with Rationalized Manpower

Your Company achieved Labour Productivity (LP) of 615
TCS/Man/Year in FY 2024-25. The manpower strength of
the Company was 53,159 nos. as on 1^st April, 2025 with
manpower rationalization of 2,830 nos. achieved during the
FY 2024-25. The enhanced productivity with rationalized
manpower could be achieved as a result of judicious
recruitments, building competencies and infusing a sense of
commitment and passion among employees to go beyond
and excel. Trend of enhanced productivity and manpower
rationalization since 2015-16, onwards is depicted below:

Developing Employee Capabilities & Competencies

Your Company believes that people's development is the
key for overall growth of the organisation. Training and
development activities have facilitated development of
employees' knowledge and skills, resulting in advancement

of competencies, thereby leading to attainment of
Organisational Goals and Objectives. SAIL has been
making sustained efforts through various training and
development activities with focus on preservation, transfer
and improvement of skills, knowledge and technology in

collaboration with reputed organizations and development
of effective managerial competencies in association with
premier institutes.

Preparing employees for tomorrow is being given a major
thrust with a view to enable them to effectively take up
challenges and discharge new roles and responsibilities.
Overall 33,028 employees were trained against target
of 23,113 employees during the FY 2024-25 on various
contemporary technical and managerial modules. In addition

to this, the Contractual Workers at Plants are being provided
Recognition of Prior Learning (RPL) training through Indian
Iron and Steel Sector Council (IISSSC). The learning and
development continuity of the Organization was maintained
through various online interventions, apart from the regular
programs and e-learning modules being made available in
the in-house e-learning portal.

Harmonious Employee Relations

SAIL has maintained its glorious tradition of building and
maintaining a conducive and fulfilling employer-employee
relations environment. The healthy practice of nurturing a
strong connect with employees and settling issues through
discussions with trade unions/workers' representatives
enabled the Company in ensuring workers' participation at
different levels and establishing a peaceful industrial relations
climate. Some of the bipartite forums are functioning since
early seventies and are sufficiently empowered to address
different issues related to wage, safety, and welfare of
workers, thus, helping in establishing a conducive work
environment.

Bipartite forums like National Joint Committee for Steel
Industry (NJCS), Joint Committee on Safety, Health &
Environment in Steel Industry (JCSSI), etc. with representation
from major central Trade Unions as well as representative
Unions of Plants/Units meet on periodic basis and jointly
evolve recommendations/action plans for ensuring a safe
environment and harmonious work culture which gets
substantiated from the harmonious Industrial Relations
witnessed over the years by SAIL Plants/Units, marked with
diverse work culture at multi-locations.

In addition, Quality Circles, Suggestion Schemes, Shop Welfare
Committees, Safety Committee, Canteen Management
Committee, Productivity Committee, etc. also offer multiple
avenues for enhanced workers'participation. Workers are also
kept abreast of strategic business decisions and their views
sought thereon through structured/interactive workshops.

Communication is done in a structured manner with
employees at various levels on a wide range of issues
impacting the Company's performance as well as those
related to employees' welfare across the Company. Mass
communication campaigns are undertaken at Director In-
charges'/Senior Officers' level involving structured discussion
with large group of employees. These interactive sessions
help employees to align their working with the goals
and objective of the Company leading to not only higher
production and productivity but also enhance the sense of
belongingness of the employees.

Grievance Redressal Mechanism

Effective internal grievances redressal mechanism has been
evolved and established in SAIL Plants and Units, separately
for Executives and Non-executives. Grievance Redressal
Machinery exists at Plant/Unit level for effective redressal of
grievances.

SAIL Plants/Units are maintaining grievance handling
mechanism and employees are given an opportunity at
every stage to raise grievances relating to wage irregularities,
working conditions, transfers, leave, work assignments,
welfare amenities, etc. Majority of grievances are redressed
informally in view of the well-entrenched participative
culture prevailing in the Steel Plants/Units. The system is
comprehensive, simple and flexible and has proved effective
in promoting harmonious relationship between employees
and management.

206 staff grievances were received during the FY 2024-25 and
with 32 grievances were pending from previous year, 228 staff

grievances have been disposed of during the year, achieving
96% fulfilment and leaving 10 grievances outstanding at the
end of FY 2024-25.

Further, during FY 2024-25, 857 grievances were received
under Centralised Public Grievance Redressal and Monitoring
System (CPGRAMS), a National level online system managed
by Department of Administrative Reforms and Public
Grievance (DARPG), Government of India.

The Status of Grievances received and disposed from 1^st April,
2024 to 31^st March, 2025 is as under:

Remuneration Policy

In SAIL, pay and other benefits for executives are based on
the Presidential Directives issued by the Ministry of Steel,
Government of India. Presidential Directives for revision of
pay scales of Board level and below Board level executives
were issued by the Ministry of Steel vide letter dated 18^th
November, 2021 w.e.f. 1^st January, 2017 notionally and
the actual payment was made w.e.f. 1^st April, 2020. In case
of Non-executive employees, the wages including perks
were finalized/ revised in bipartite forum of National Joint
Committee for Steel Industry (NJCS) with the approval of
Ministry of Steel on 18^th November, 2021. The pay scales
have been implemented notionally w.e.f. 1^st January, 2017
and the actual payment was made w.e.f. 1^st April, 2020.
The Perks and Allowances under Cafeteria Approach have
been implemented w.e.f. 18^th November, 2021. In terms
of notification dated 5^th June, 2015 issued by Ministry of
Corporate Affairs, Government of India, the provisions of
section 197 of the Companies Act, 2013 are not applicable
to Government Companies. As such, the disclosures to be
made in the Board's Report in respect of overall maximum
managerial remuneration and managerial remuneration in
case of absence or inadequacy of profits are not included in
this Report.

Initiatives for Socio-economic Development of SCs /STs &
Other Weaker Sections of the Society

SAIL Plants and Units including Mines are situated in
economically backward regions of the Country with

predominant SC/ST population. Your Company has made
commendable contribution to the overall development
of civic, medical, educational and other facilities in these
regions. Some of the contributions are:

•    Establishment of SAIL Steel Plants in economically
backward areas has given a fillip to the economic
activities, thus, benefiting the population in the
peripheral areas with different types of services. Steel
Townships developed by SAIL have the best of medical,
education and civic facilities and are like an oasis for
the local Scheduled Castes, Scheduled Tribes and other
population who share the benefits of prosperity and
development along with SAIL employees.

•    Recruitment of non-executive employees, around
82% of the total employees, is carried out mainly on
regional level and hence, a large number of SCs/STs and
other weaker section of the society get the benefit of
employment in SAIL.

•    Over the years, a large group of ancillary industries have
also developed in the vicinity of Steel Plants. This has
created opportunities for local unemployed persons for
jobs and development of entrepreneurship.

•    For jobs of temporary & intermittent nature, generally
contractors are engaged for executing job contracts
wherein they deploy workmen from the local areas,
which again provides an opportunity for employment
of local candidates from economically weaker section.

•    Your Company has undertaken several initiatives for
the socio-economic development of SCs/STs and other
weaker sections of the society which are mainly as
under:

» Special Schools have been started exclusively for
poor, underprivileged children at five Integrated
Steel Plant locations. The facilities provided include
free education, mid-day meals, uniforms including
shoes, text books, stationery items, school bags,
water bottles, etc.

» No tuition fee is charged from SC/ST students
studying in the Company run schools, whether they
are SAIL employees' wards or non-employees' wards.

» Free medical health centres have been set up at
Bhilai, Durgapur, Rourkela, Bokaro and Burnpur
(Gutgutpara) providing free medical consultation,
medicines, etc. to the peripheral population mainly
comprising of SC/ST and weaker sections of society.

» SAIL Plants have adopted tribal children. They are
being provided free education, uniforms, text books,
stationery, meals, boarding, lodging and medical
facilities for their overall growth at residential
hostels, Saranda Suvan Chhatravas, Gyanodaya
Hostel and an exclusive Gyan Jyoti Yojana for the
nearly extinct Birhor Tribe.

» For Skill Development and better employability,
youths & women of peripheral villages have
been provided vocational and specialized skill
development training at various ITIs, Nursing
tribal school pass-outs have been sponsored for
coaching in premier institutes for IIT/JEE entrance
examinations and for trainings along with monthly
stipend, accommodation, transportation and food
facility at various ITIs, Nursing and other vocational
training institutes.

Implementation of Presidential Directives on Reservation

for SC/ST/OBC, etc.

•    Your Company follows Presidential Directives on
Reservation for Scheduled Castes and Scheduled Tribes
in the matter of recruitments and promotions. As on
1^st April, 2025, out of total manpower of 53159, 9033
belong to SCs (17%), 8581 belong to STs (16.1%).

•    Liaison Officers have been appointed as per Presidential
Directives for due compliance of the Orders and
instructions pertaining to reservation for SCs/STs/OBCs/
PWDs at Plants/Units of SAIL.

•    SC/ST/OBC Cell is functioning in all the main Plants/
Units. A member belonging to SC/ST community is
associated in all Departmental Promotion Committees
(DPCs)/ Selection Committees. A sufficiently senior
level officer of SC/ST/OBC category is nominated for
the purpose as per the level of the Recruitment Board /
Selection Committees/DPC.

•    Out of the total manpower of 53159, number of OBCs is
9346, which is 17.6% of the manpower. Reservation for
OBCs came into force with effect from 8^th September,
1993. OBC candidates joining prior to this date are
shown against the Unreserved (UR) category. Liaison
officers have been appointed for due compliance of
orders and instructions pertaining to reservation for
OBC at Plants/ Units.

•    Internal workshops are conducted at regular intervals
through an external expert for Liaison Officers for SC/
ST/OBC and other dealing officers of SAIL Plants/Units
to keep them updated on the reservation policy for SC/
ST/OBCs and other related matters.

•    Plants/Units of SAIL have SC/ST Employees' Welfare
Associations which conduct regular meetings with
Liaison Officers on implementation of reservation policy
& other issues. In addition, an Apex level umbrella body
namely SAIL SC/ST Employees Federation also exists in
SAIL to represent the issues of SC/ST Employees in a
coordinated manner.

Implementation of Right to Information Act, 2005

The provisions under the Right to Information Act, 2005(Act)

are being complied by all the Plants and Units of SAIL. All

statutory reports, including Annual Report, are being sent to
Ministry of Steel and also being uploaded on the website of
the Company-www.sail.co.in. Your Company has appointed
Public Information Officers (PIO)/Assistant Public Information
Officers and Appellate Authorities and Transparency Officer
in each Plant and Unit under Sections 5 and 19(1) of the Act
for speedy redressal of the queries received under the Act.
Under Section 5(5), all the officers/line managers responsible
for providing information to the PIO are called Deemed PIO,
and are made equally responsible as PIO, towards timely
submission of information to the applicant.

An exclusive RTI Portal has been developed with link available
on the website of the Company. All the Plants/Units have
listed 17 manuals and details of Authorities under the Act are
uploaded on the website of the Company. Quarterly Returns
and Annual Returns on implementation of the Act are being
submitted online through the CIC portal. Implementation
of online request has already been introduced from 1^st May,
2015. A compilation of Record Retention Policy of various
functions of Corporate Office has also been uploaded on the
website of the Company. Awareness Programs/Workshops
on RTI have been organised across Plants/ Units.

SAIL received a total of 4,152 applications and 572 appeals
under the Act during the FY 2024-25 and all of them have
been disposed of within the time frame stipulated under the
Act. CIC has also taken up 31 cases and most of these cases
were disposed of in favour of the Company.

Since enactment of the Act, SAIL has received a total of 59,719
applications and 9,154 appeals up to 31^st March, 2025, which
were disposed-off within the stipulated time. Out of these,
1,182 cases were taken up by the CIC and most of these cases
were disposed of in favour of the Company.

Citizen Charter

Your Company is totally committed to excellence in public
service delivery through good governance, by a laid down
process of identifying citizens, our commitment to them in
meeting their expectations and our communication to them
of our key policies, in order to make the service delivery
process more effective.

SAIL's Citizen Charter has outlined commitment of SAIL
towards its stakeholders, thereby empowering them to
demand better products and services. Objectives of the
Citizen's Charter of SAIL may be summarized as below:

•    Ensuring effective citizen communication channels.

•    Demonstrating transparency and openness of its
business operations by hosting the Citizen's Charter on
the Corporate website.

•    Working towards the delight of citizens, by fail-safe
processes and in case of exigencies leveraging its
service recovery processes, like Grievance Redressal,
Handling Complaints, etc.

Disclosure under the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act,
2013:

Your Company has set up Internal Complaints Committees in
line with the requirement of the Sexual Harassment of Women
at the Workplace (Prevention, Prohibition and Redressal)
Act, 2013. These Committees have been set up to redress
complaints, if any, received regarding sexual harassment. All
employees of the Company are covered under these Rules.

The details of sexual harassment complaints received and
disposed of during the year 2024-25 are as under:

Out of the five complaints disposed of during the year, two
complaints were discharged in a period of more than ninety
days.

Disclosure under the Maternity Benefit Act, 1961:

It is hereby confirmed that during FY 2024-25, SAIL is in
compliance with the provisions of Maternity Benefit Act,
1961.

D. AWARDS & ACCOLADES WON DURING THE
YEAR

Your Company has won the following awards during the FY
2024-25:

•    SAIL has been recognized as one of India's Best
Employers among Nation Builders for 2024 by Great
Place to Work Institute, India. The prestigious award
acknowledges SAIL's legacy of unwavering commitment
to nation-building and Company's efforts to create a
high trust workplace culture.

•    SAIL achieved the Golden Peacock Environment

Management Award 2024 by the Institute of Directors in
recognition of Organisation's exceptional commitment
to environmental sustainability, responsible practices
and innovative solutions.

• The Silver Award in Special Categories (Old age/
Specially—abled) was awarded to SAIL at 11^th National
CSR Summit & CSR Times Awards 2024 held in August,
2024.

•    SHRM HR Excellence Awards 2024 were won by SAIL in
the two categories: "PSE-Excellence in inclusion, Equity
& Diversity" for enhancing workplace diversity, equity,
and inclusion in alignment with the organization's
vision, resulting in positive organizational outcomes;
and "PSE-Excellence in Managing the Distributed
Workforce" recognizing organizations that excel in
managing a workforce spread across diverse locations/
geographies.

•    SAIL won two awards in the categories of Excellence in
Infrastructure Development & Contribution to National
Security & Defence in the Governance Now 11^th PSU
Awards.

•    SAIL Corporate Communication was conferred with
eight national awards by the Public Relations Council of
India in the categories including (i) e-Newsletter for SAIL
Track, Corporate Film (English); (ii) Best Communication
Campaigns (Internal Publics) for SAIL Gaurav Diwas
celebration; (iii) House Journal (English) for SAIL
News; (iv)Best PR Programme for Promoting Science &
Technology for Steel Plant Technologies; (v) Best Use of
social media in a Corporate Campaign for Promoting
Green Steel; (vi)SAIL's Website and Annual Report for
the Financial Year 2024-24, at the award function held
on 20^th -22^nd December, 2024, at Raipur.

•    Bhilai Steel Plant (BSP) bagged the 25^th CII National
Energy Excellence Award 2024 for its Energy Efficiency
and Innovative Project for Paver Block Manufacturing at
BSP's SAIL Green Tiles Plant, at the ceremony held on
10^th September, 2024.

•    Bhilai Steel Plant (BSP) was awarded Greentech Award
for outstanding achievements in 'Innovative Waste
Management Technology' category, at the ceremony
held in July, 2024.

•    Rourkela Steel Plant (RSP) won the prestigious
"Greentech Pollution Control Waste Management
and Recycling (PCWR) Excellence Award 2024" for

outstanding achievement in Environment Management
and Waste Utilization and Recycling Efforts during the
year 2023-2024, at the award function organized by
Greentech Foundation in July, 2024.

•    Rourkela Steel Plant (RSP) won the Productivity
Excellence Award 2024 in Platinum and Gold category,
by Odisha State Productivity Council during Productivity
Week celebration on the theme "Artificial Intelligence
(AI): Productivity Engine for Economic Growth".

•    Rourkela Steel Plant (RSP) was awarded Kalinga
Environment Excellence Award 2023 in the Five Star
Category from Institute of Quality and Environment
Management Services, in recognition of outstanding
achievements in environmental management during
the year 2023.

•    IISCO Steel Plant (ISP) won the 'Gold Award' in the
International Convention on Quality Control Circles
organized by Sri Lanka Association for the Advancement
of Quality and Productivity.

•    IISCO Steel Plant (ISP) was awarded the 'Kalinga
Safety Excellence National Award 2023' by Institute of
Quality and Environment Management Services, at the
ceremony held on 18^th December, 2024 at Bhubaneswar.

•    Bokaro Steel Plant (BSL) has been awarded the
"Greentech Global EHS Award 2024" from Greentech
Foundation for outstanding achievements in
Environment, Health & Safety of its Employees and
Workers during the award year 2022-23.

•    Durgapur Steel Plant (DSP) bagged the 'Golden Peacock
Award for Business Excellence' for the year 2025.

•    Salem Steel Plant has won the'IIM National Sustainability
Awards 2024' under Secondary Steel Plants/Alloy Steel
Plant category organized by The Indian Institute of
Metals, on 20^th November'2024.

•    Chandrapur Ferro Alloys Plant (CFP) was awarded the
'Golden Peacock Occupational Health & Safety Award'
for the year 2024 (Steel Sector).

•    Research & Development Centre for Iron and Steel
(RDCIS) won the IIM SAIL Gold Medal and Best
Presentations Awards from the Indian Institute of
Metals.

E. ENVIRONMENT MANAGEMENT

Within the ambit of notified environmental standards
applicable for emission and discharge of pollutants into
the environment and rules pertaining to eco-friendly
management of various wastes, being generated inside
the Plant premises as well as in the townships, SAIL Plants
and Mines consistently endeavor to pursue their operations
aligned to environmental sustainability and compliant with
stringent standards governing emissions, waste management
and ecological preservation. Beyond mere compliance, the
Company strives to enhance the environmental equilibrium
across its operations, both within the Plant boundary and
the broader Townships it supports. As an environmentally
conscious and responsible corporate citizen, SAIL strives to
integrate its business values and operations in an ethical and
transparent manner to demonstrate its dedication towards
sustainable development and stakeholder well-being. Your
Company's approach is guided by its Corporate Environmental
Policy, which not only ensures adherence to regulatory norms
but also demonstrates a forward-looking vision that aspires
to exceed them. Besides, your Company remains committed
to address the stakeholders' concerns and fostering a culture
of environmental responsibility. This dedication is reflected in
its ongoing efforts to innovate, optimize resource usage, and
implement clean technologies that contribute to a greener
future. The Corporate Environmental Policy is available at the
website of the Company- www.sail.co.in.

Environmental Performance and Progressive
Sustainability Measures

Your Company continues to drive its environmental
stewardship with a proactive approach to pollution control,
ensuring effective operation, modernization, and systematic
upgradation of its pollution control systems. Through
sustained maintenance efforts, including revamping,
refurbishment, and compliance driven enhancements,
your Company remains aligned with increasingly stringent
environmental regulations.

In response to evolving regulatory frameworks, the Company
has strengthened its environmental management practices,
implementing robust mitigation strategies, pollution
reduction measures, and a rigorous compliance review
process. These efforts have yielded significant improvements
in environmental performance during FY 2024-25 over the
last five years in the following areas:

•    Reduction in Specific PM Emission Load: Achieved
11% reduction, contributing to cleaner air quality.

•    Optimized Water Usage: Specific water consumption
brought down by 11%, promoting sustainable resource
management.

•    Effluent Discharge Improvement: Reduction
in specific effluent discharge by 22%, enhancing
environmental sustainability.

•    Effluent Load Mitigation: Reduced by 34%, ensuring
better waste management and ecological balance.

•    BOF Slag Utilization: Increased significantly by 61%,
maximizing resource efficiency and minimizing waste.

•    Enhanced Solid Waste Utilization: Noteworthy
increase of 11%, reinforcing sustainable waste
management and circular economy efforts.

Environmental Projects Implemented for Enhanced
Sustainability

Your Company has undertaken the following key initiatives
to strengthen environmental performance:

•    Air Emission Control: Wet scrubbers at RMP-II of Bhilai
Steel Plant were replaced with advanced bag filters to
effectively reduce particulate emissions.

•    Wastewater Treatment & Recirculation: A new Effluent
Treatment Plant (ETP) was set up at Durgapur Steel
Plant to process and recycle 500 m³/hr of wastewater
from outfalls #1,2 & 3, ensuring compliance with water
discharge quality standards.

•    Environmental    Quality Improvement:    Coke

Oven Battery#2 at Rourkela Steel Plant underwent
complete rebuilding, along with an upgrade in coke
and gas handling facilities, aligning with stringent
environmental regulations.

•    Fugitive Emission Reduction: Conventional doors
of Coke Oven Battery #11 at IISCO Steel Plant were
replaced with modified diaphragm-equipped doors to
effectively curb fugitive emissions.

•    Water Quality Enhancement: Multiple effect
evaporators at the Defluoridization Unit of Salem Steel
Plant were revamped, introducing a third-stage Reverse
Osmosis system to meet water quality benchmarks.

•    Air Quality Improvement: A battery-operated
industrial road sweeping system was procured and
deployed at Chandrapur Ferroalloy Plant, to ensure
better ambient air quality management.

Commitment to Climate Change Mitigation and Green
Steel Innovation

Recognizing the urgency and significance of global
climate concerns, your Company has integrated carbon
footprint reduction as a fundamental principle within its
corporate policies and operational framework. As part of
its Modernization and Expansion Plan, the Company is
implementing state-of-the-art, environmentally sound
technologies, complemented by the best available and
feasible pollution control systems.

Moving forward, SAIL is actively formulating a strategic
roadmap for further reducing emission intensity, fostering
industrial decarbonization and drive the transition towards
Green Steel production.

Strategic Decarbonization & Technological Interventions

SAIL's decarbonisation strategy has been designed based
on the existing architecture and logistics, availability of

technology, product basket & market dynamics, technology
infusion rate & availability of fund, future expansion plan,
breakthrough technological developments, Government
policies and the Company's social commitment. Your
Company has embarked on collaboration with leading
research institutes and technology providers to accelerate
the decarbonization efforts. A few key segments of focus are
Carbon Capture, Utilization and Storage (CCUS) initiatives
and integrating breakthrough technological interventions
for sustainable steelmaking. To drive these objectives, SAIL
has formalized several strategic alliances including the
following:

• Global and Domestic Collaborations for Green

Transformation

» Advanced Technologies:

•    MoU with John Cockerill India Limited to
integrate green technologies into Iron and
Steelmaking processes, incorporating advanced
Steelmaking technologies for enhanced
efficiency and sustainability.

•    MoU with SMS Group (Germany) with focus on
integrating green Steelmaking technologies and
exploring innovative solutions like Coke Oven
Gas Injection in Blast Furnaces at BSP.

» Hydrogen-Based Production and Digitalization:

Primetals Technologies and RSP are collaborating
on several initiatives, including, hydrogen-based
steel production, digitalization, gas treatment, and
CCUS.

» MoU with BHP to promote low-carbon steelmaking
pathways, specifically targeting efficiency
improvements in the Blast Furnace - Basic Oxygen
Furnace (BF-BOF) route.

» MoA between RDCIS and IOCL for the development
of a specialized fluid aimed at reducing moisture
content in wet-quenched coke, thereby improving
fuel efficiency in blast furnaces and lowering
emissions.

» Under the GIZ-SCOPE MoU, a Techno-Commercial
Feasibility (TCF) Study has been initiated at Bhilai
Steel Plant and its Mines. Led by GIZ, the Study will
identify the initiatives and actions for beneficiation
of tailings, increased steel scrap usage, improved
fines for agglomeration, and integration of green
hydrogen in steel production.

» SAIL & LeadIT: Under the India-Sweden joint
initiative, SAIL joined LeadIT in June, 2024. As part of
the Working Group of Steel, five key thematic areas
have been identified for undertaking key projects
with the goal to achieve decarbonisation through
new technology interventions, improvement
of process efficiency, raw material efficiency
and transition to new energy options. The five

thematic areas are Hydrogen DRI, CCUS, Blast
Furnace Excellence, Dry Beneficiation, and Biomass
Pathways. SAIL is actively pursuing to identify
potential collaborations under the LeadIT ITP.

Through these ambitious initiatives, SAIL is reinforcing
its leadership in sustainable industrial practices,
strengthening its commitment to net-zero aspirations,
and driving the transition toward environmentally
responsible steel production.

• R&D Initiatives for Biomass Utilization

Your Company is actively exploring innovative
approaches to reduce its carbon footprint by integrating
biomass-based solutions into its Steelmaking processes.
As part of its commitment to sustainable operations,
the Company has initiated pioneering research and
development efforts aimed at replacing conventional
fossil fuels with biochar, a carbon-neutral alternative
derived from biomass.

» Industrial Trials for Biochar in Sinter Production

•    In a groundbreaking step toward decarbonization,
Durgapur Steel Plant, in collaboration with
RDCIS, has successfully conducted India's first
industrial-scale trial utilizing bamboo biochar as
a partial replacement for Coke Breeze in Sinter
Plant-2.

•    Greener Solid Fuel Adoption: The integration of
biochar presents a promising pathway toward
reducing reliance on conventional fossil fuels.

•    Lower CO₂ Emissions: Regular application of
biochar in sinter production can significantly
reduce carbon emissions, contributing to a more
sustainable steelmaking process.

•    Enhanced Energy Efficiency: By leveraging
biomass-derived fuel, SAIL is reinforcing its
commitment to cleaner production methods
while improving operational sustainability.

» Co-Injection of Biochar with Pulverized Coal in
Blast Furnaces

Your Company is also advancing efforts to co¬
inject biochar alongside pulverized coal in its Blast
Furnace operations. This initiative is expected to:

•    Reduce dependency on traditional fossil fuels,
enhancing process efficiency and reducing CO2
emissions.

•    Improve carbon reactivity, optimizing
combustion dynamics within the furnace.

•    Contribute to long-term sustainability, aligning
with global best practices for industrial
decarbonization.

Through these bold innovations, SAIL continues to
push the boundaries of sustainable steelmaking,
reinforcing its leadership in environmental
stewardship and climate-conscious industrial
practices.

•    Hydrogen Utilization in Steelmaking

In alignment with global decarbonization goals, your
Company is actively exploring the use of hydrogen
(H2) as a cleaner energy alternative in its steelmaking
processes. These efforts are a significant step toward
reducing reliance on coal and coke, while advancing
sustainable production practices.

•    Pilot Study on Hydrogen Usage in Blast Furnaces

Under the National Green Hydrogen Mission, Ministry
of Steel sanctioned a grant of Rs.25 crore to SAIL in
October, 2024 for conducting a pilot study on the
utilization of hydrogen in an existing Blast Furnace.
Against the total projected cost of the Study of Rs.50
crore, SAIL is contributing the remaining amount of
Rs.25 crore. The Study aims to optimize hydrogen
injection techniques to reduce coal/coke consumption,
thereby, cutting emissions and enhancing energy
efficiency. The project is expected to be completed
within two years and will serve as a crucial enabler for
low-carbon steel production.

•    Collaboration with IIT Kharagpur for Green
Hydrogen in DRI

Your Company is partnering with IIT Kharagpur to
advance technology for utilizing Green Hydrogen
in Direct Reduced Iron (DRI) production. The Project
titled "Laboratory/Pilot Scale setup to optimize process
parameters for producing DRI with varying H2 and CO
ratios, along with 3D Multiphysics Modeling of the DRI
shaft reactor." was approved by the Ministry of Steel
on in February, 2025, with a total cost of Rs.9.82 crore,
including Rs.5.47 crore funded by the Ministry and the
balance Rs.4.35 crore contributed by SAIL. The Project
seeks to establish a 10 kg/day laboratory-scale vertical
shaft DRI unit at IIT Kharagpur and to develop a 1 TPD
pilot-scale setup at SAIL/RDCIS to optimize process
parameters for producing DRI using varied ratios of H2
and CO.

SAIL's strategic initiatives reflect its commitment to
environmental preservation, energy efficiency and the
long-term transformation of steelmaking into a greener
and more sustainable industry.

Commitment to Waste Utilisation through Application of
4R Principles

Your Company actively embraces the 4R philosophy i.e.
Reduction, Reuse, Recycling, and Recovery as a cornerstone
of its solid waste management strategy, driving sustainable
growth across the steel industry.

Innovative Utilization of BOF Slag for Sustainable
Agriculture

In an effort to enhance the utilization of Basic Oxygen Furnace
(BOF) slag, SAIL as one of three industry partners, under the
aegis of the Ministry of Steel, partnered with ICAR-Indian
Agricultural Research Institute (IARI) to conduct a cutting-
edge research project titled: "Development of Steel Slag-
Based Cost-Effective Eco-Friendly Fertilizers for Sustainable

Agriculture and Inclusive Growth" The key highlights of the
project include:

•    Value Added Products from Steel Slag: IARI
successfully developed innovative Steel Slag-Based
Value Added Products (SSBVAPs) for application in
agriculture.

•    Field Trials at SAIL Plants: All the five Integrated Steel
Plants undertook field trials to assess the impact of
SSBVAPs on crops.

•    Encouraging Results: The trials yielded promising
outcomes, demonstrating the effectiveness of SSBVAPs
as a soil ameliorating agent, fostering healthier crop
growth and reducing dependency on conventional
fertilizers.

The benefits and future impact of the project comprise:

•    Symbiotic Growth: Foundation for    symbiotic

growth between the steel industry and agriculture by
leveraging BOF slag as a sustainable resource.

•    Circular Economy Model: By repurposing industrial
waste into agricultural products, your Company is
promoting a circular economy model that minimizes
waste and maximizes resource efficiency.

•    Reduction of Waste: Contribution to the reduction of
waste generated by the steel sector while advancing
eco-friendly agricultural practices.

This innovative approach underscores your Company's
commitment to sustainability, demonstrating how industrial
by-products can be repurposed to benefit both the
environment and society.

Transitioning to an Energy-Efficient LED Illumination
System

To align with the Government of India's Unnat Jyoti by
Affordable LEDs for All (UJALA) Scheme, your Company is
taking significant strides for enhanced energy efficiency by
systematically replacing conventional lighting with durable,
high-performance LED systems. More than 1.2 million LED
lights have been installed across all the Plants/Units, which
is 93% of the total lighting infrastructure. This transition
not only contributes to substantial energy savings but also
reinforces our commitment to sustainable operations and
reduced carbon footprint.

Further, as part of our forward-looking strategy, all upcoming
projects will exclusively feature LED lighting systems,
ensuring continued optimization of energy consumption and
long-term environmental benefits. SAIL remains dedicated
to integrating innovative solutions that drive efficiency,
sustainability, and operational excellence across all facets of
its infrastructure.

Environmental Management System (EMS): Strengthen¬
ing Sustainability Commitments

Environmental Management System (EMS) linked to
ISO:14001 is a set of processes and practices that enable
an organization to reduce its environmental impacts and
increase its operating efficiency.

SAIL has adopted the internationally recognized EMS
linked to ISO 14001, ensuring a structured approach
to minimizing environmental impact, while enhancing
operational efficiency. This system enables the Organization
to systematically manage environmental risks, optimize
resource use, and maintain compliance within applicable
regulatory standards across its operations.

EMS implementation has significantly contributed to
maintaining environmental performance across SAIL's Plants/
Units/Mines, reinforcing the Company's commitment to
sustainability and responsible industrial practices. To further
strengthen this commitment, EMS (ISO 14001) has been
successfully implemented at all Plants. Efforts are ongoing to
extend coverage across all Mines under SAIL's purview.

By progressively integrating ISO 14001 certification across
its mining operations, Your Company continues to uphold
global best practices in environmental stewardship, fostering
long-term sustainability and resource efficiency within the
steel industry.

Eco-Restoration Initiatives: Rebuilding Degraded
Ecosystems

Restoring and rehabilitating degraded ecosystems is vital
for preserving biodiversity and replenishing essential
ecosystem services. Your Company remains committed to
environmental stewardship, ensuring that former mining
areas are transformed into thriving landscapes. Following
the successful restoration of Purnapani Limestone Mines
in Odisha, SAIL has embarked on a fresh initiative for
the eco-restoration of Meghahatuburu Iron Ore Mines

(MIOM) and Kiriburu Iron Ore Mines (KIOM). As part of this
commitment, an MoU has been signed with the Institute of
Forest Productivity, Ranchi, to implement eco-restoration
strategies for mined-out areas and waste dumps. The project
covers 10 hectares at KIOM and 8.5 hectares at MIOM in the
Saranda Forest Division, with an extensive rehabilitation
plan scheduled over five years, until 2025-26. This initiative
will help revitalize these areas, enhance soil stability,
promote afforestation, and support local biodiversity, further
strengthening your Company's dedication to sustainable
mining and environmental responsibility.

Through strategic ecological interventions, the Company
continues to pioneer green restoration efforts, contributing
to a healthier and more resilient ecosystem.

Harnessing Renewable Energy: Advancing Sustainable
Power Solutions

Your Company is taking initiatives to accelerate its transition
toward renewable energy, reinforcing its commitment to
sustainable operations across its Plants, Units and Mines. As
a part of this initiative, SAIL has successfully installed 12.54
MW of solar energy capacity, contributing to cleaner and
more efficient power generation. Expanding its green energy
footprint, solar water heating and solar lighting systems
have been integrated into most guest houses and hospitals,
further promoting energy conservation in key facilities.

• Diversifying Renewable Energy Sources: To further
strengthen its sustainable energy mix, SAIL is procuring
approximately 7 MW of bagasse based co-generated
power at Salem Steel Plant during the sugarcane
crushing season, leveraging biomass as a sustainable
alternative.

In addition to this, your Company is increasing its reliance
on green power procurement from utilities, reinforcing its
commitment to eco-friendly energy solutions covered in
detail in the Power section. In a significant move toward
large scale green power adoption, DSP & ISP have secured
arrangements for sourcing 50% of their total grid power
requirements from DVC's Green Power supply. This strategic
shift besides reducing dependence on conventional energy,
also strengthens the Company's contribution to India's clean
energy goals.

Looking ahead, SAIL has outlined ambitious plans to scale up
its renewable energy capacity to 384 MW by the year 2028¬
29, thereby driving long-term environmental sustainability
and energy efficiency across its operations.

Through these proactive measures, your Company remains
steadfast in its mission to integrate innovative renewable
energy solutions, ensuring a greener and more sustainable
future for the steel industry.

Plantation and Afforestation: Strengthening Ecological
Balance

Your Company recognizes the critical role of plantation in
advancing environmental sustainability and ecosystem
restoration. Trees act as natural carbon sinks, helping to

mitigate climate change while preserving biodiversity and
supporting natural forest regeneration.

As part of its unwavering commitment to environmental
management, your Company's afforestation programs are
designed not only to restore degraded lands but also to
promote the growth of native species and enhance the
overall ecological balance. These green initiatives contribute
significantly to:

•    Enhancing aesthetic appeal in industrial surroundings.

•    Reducing air pollution by absorbing atmospheric CO₂.

•    Acting as natural barriers against dust and noise
pollution.

With a longstanding dedication to expand green cover, your
Company has systematically implemented afforestation
programs across its Plants/Units/Mines. During FY 2024¬
25, more than 3 lakh saplings were planted, adding to the
impressive total of 22.4 million saplings planted across SAIL,
since inception of the Company.

Through consistent and large-scale afforestation efforts,
SAIL continues to play a pivotal role in environmental
conservation, fostering greener landscapes and reinforcing
sustainability within the steel industry.

MIS Portal for Environmental Data Management

In a significant step towards digitizing environmental
monitoring and reporting, your Company has launched an
internet-based MIS (Management Information System) portal
designed to enhance efficiency in tracking environmental
data across its Plants and Mines. This digital platform
streamlines the collection, analysis, and reporting of critical
environmental metrics, ensuring real-time data accessibility.
By integrating technology-driven solutions, SAIL continues
to strengthen its commitment to sustainable operations and
effective environmental management.

F. STRATEGIC INITIATIVES OF THE COMPANY

Your Company has adopted a multi-pronged approach that
includes organic growth, brown-field projects, technology
leadership through strategic alliances, ensuring raw material
security by developing new mines, diversifying in allied areas,
etc. In line with the above approach, SAIL has formed Joint
Venture Companies in different areas viz. power generation,
rail wagon manufacturing, slag cement production, securing
coking coal supplies from new overseas sources, etc.

Disinvestment and Revival Initiatives within SAIL

The Cabinet Committee on Economic Affairs (CCEA) in its
meeting held on 27^th October, 2016 had accorded 'in principle'
approval for strategic disinvestment of three units of Steel
Authority of India Limited (SAIL) viz. Visveswaraya Iron &
Steel Plant (VISP), Bhadravati, Karnataka; Salem Steel Plant
(SSP), Tamil Nadu; and Alloy Steels Plant (ASP), Durgapur,
West Bengal. The strategic disinvestment process for three
units (ASP, SSP & VISP) of SAIL has undergone multiple
attempts, with limited success. Despite efforts to invite
Expressions of Interest (EOIs) for Alloy Steels Plant (ASP),
Visvesvaraya Iron & Steel Plant (VISP), and Salem Steel Plant

(SSP), the process faced challenges due to lack of technically
qualified or interested bidders. Following recommendations
from the Core Group of Secretaries on Disinvestment (CGD)
and approval by the Alternative Mechanism (AM), the EOIs
for VISP and SSP were annulled.

Business Excellence Initiative

Most of SAIL Plants/Units are certified to ISO 9000, ISO 14000,
ISO 45000, SA 8000, ISO 50000 and ISO 27000 Management
Systems. For maintenance of these Management Systems
as per the requirement of standards, timely audits were
conducted and trainings were organised for better
understanding of standards and latest updates for the same.

M/s. TUV India Limited, the empanelled Certification Agency,
conducted the required Audits and Trainings related to
these Management Systems. Empanelment of Certification
Agencies has resulted in Reduction in Audit Man-Days,
Reduced Audit man-day rates, Improved quality of Audits,
Reduced administrative hassles, etc.

Information Technology Related Initiative: SAIL's Digital
Transformation: Building the Future, Today

Your Company has made significant progress in its digital
transformation journey, embedding innovation and
technology across the Organization. Through a coordinated,
enterprise-wide approach to digitalization, SAIL has achieved
critical milestones that are driving operational efficiency,
enhancing safety standards, and promoting sustainable
business practices. In alignment with its long-term vision, SAIL
has launched a three-year Digital Transformation Program,
aimed at leveraging next-generation technologies, fostering
a culture of innovation, and delivering measurable impact.
This program is designed to build the Organization's intrinsic
digital capabilities, enabling the creation of a self-sustaining
digital innovation engine. It positions the Company to remain
competitive, meet dynamic customer expectations, and seize
emerging opportunities in the evolving industrial landscape.
Some of the strategic initiatives implemented during the
year 2024-25 are given below:

Advanced Analytics & AI

•    Coke Quality Prediction Using AI: Enables 72-hour
advance prediction at the coal blend preparation stage.

•    Silicon Prediction in Blast Furnaces: AI-driven model
enhances thermal stability assessment and early issue
detection.

•    Zinc Coating Automation: Machine learning-based
control of zinc coating through critical parameter
optimization.

•    Coal Blend Cost Optimization Tool: Assists in decision¬
making under raw material constraints.

•    Blast Furnace Digital Twin: Real-time data analysis to
boost process efficiency and output quality.

Process Automation & Integration

•    Digital Project Management System (DPMS):

Integrated with SAP for real-time tracking of project
execution and payments.

•    Online Vigilance Clearance System: End-to-end digital
workflow from request submission to final clearance.

•    Online Billing System (OBS): Implemented for job
contracts and material procurement via the SRM portal.

•    Web-Based e-Payment Module: Facilitates seamless
digital transactions for customers and vendors.

•    Contractor Safety Management (CSM): Mapped in
SAP/SRM, including PRQ rating and empanelment
evaluation.

•    Implementation of Digital Signatures: Applied in
Rourkela Steel Plant for invoices, test certificates, and
PRs using Hardware Security Module (HSM).

•    Predictive Maintenance for Rotating Assets: Health
monitoring system to reduce unplanned downtimes.

Logistics & Supply Chain Digitization

•    Real-Time Wagon Tracking for Customers

•    Vehicle & Driving License Verification System:

Improves logistics efficiency at entry points.

•    Automatic Rake Planning System:    Enables

destination-based planning, delivery integration, and
order-wise proposals.

•    Door Delivery Tracking for DD Materials

•    Centralized Monitoring of Railway Contracts

Customer & Product Experience

•    SAIL Grahak Sampark App: A digital touchpoint for
enhanced customer engagement.

•    Product Tagging System with QR Codes: Compliant
with Make in India standards, designed by National
Institute of Design (NID) and integrated with the with
Quality Council of India (QCI) portal.

•    QR Code Label Printing for HR Coils in HSM-2

Laboratory & Quality Management

•    Laboratory Information Management System
(LIMS): Centralized monitoring of key material analyses
(iron ore, limestone, sinter, slag, liquid steel, etc.).

•    National Accreditation Board for Testing and Calibration
Laboratories (NABL) Accreditation across Mills at BSP.

Infrastructure Monitoring & Cybersecurity

•    HSM-2 Online Monitoring System: Real-time visibility
into server/client status, crane Wi-Fi, RAM usage, and
includes e-logging functionality.

•    Cyber security Enhancements:

» Deployment of seven Next-Generation Firewalls
(NGFWs) across application and perimeter levels.

» Real-time log analysis for threat detection and
incident response.

crafted messaging, SAIL ensures seamless interaction with its
workforce, industry partners, Government bodies, investors,
and the broader community.

SAIL's communication strategies reflect its core values,
including sustainability, innovation, ethical governance, and
corporate social responsibility. Your company employs a
multifaceted approach that integrates traditional and modern
communication tools, ensuring impactful engagement with
diverse audiences. From strategic media outreach to digital
initiatives and social media engagement, SAIL effectively
conveys its vision, achievements, and contributions to India's
industrial growth.

Internal Communication: Empowering the Workforce

Employees are central to SAIL's internal communication
efforts, serving as brand ambassadors and catalysts for
organizational growth. Internal communication plays a
pivotal role in fostering a unified corporate culture, ensuring
employees remain informed, motivated, and aligned with
the Organization's strategic vision. By maintaining a steady
flow of information and prioritizing active engagement,
SAIL strengthens its workforce's engagement, productivity,
and sense of belonging. Your Company understands that
a workforce which is well-informed and connected to the
Company's broader objectives is more likely to contribute
meaningfully and demonstrate a strong commitment to
achieving corporate goals. To facilitate this, SAIL employs
various communication tools, blending conventional
methods with innovative approaches to create a dynamic
exchange of information.

One of the key initiatives in internal communication is
SAIL Gaurav Diwas, the Organization's distinctive virtual
Foundation Day celebration. Conducted successfully for five
consecutive years, this event fosters unity among employees
across all Plants and Units in India, reinforcing collective pride
in the Company's achievements. Additionally, "SAIL News",
the Company's in-house corporate magazine, has introduced
interactive engagement features such as augmented
reality-integrated videos, crossword puzzles, and articles of
employee interest. These enhancements make information
dissemination more engaging and accessible, ensuring
employees remain actively involved in the Organization's
narratives. Your Company has also embraced digital media
to enhance communication within the workforce. The
corporate video capsule, "SAIL Track", continues to gain
traction, delivering concise and informative updates on key
developments. With the increasing popularity of short-form
videos, the Company has invested in producing engaging
internal content focused on employee awareness and
motivation.

To ensure awareness on critical subjects, SAIL has
implemented targeted campaigns addressing anti¬
corruption measures, workplace ethics, and employee
development programs. Posters, digital content, and training
initiatives reinforce these essential principles, strengthening
the Company's commitment to integrity and workforce

empowerment. Social media platforms serve as an additional
avenue for internal engagement, allowing employees to
access timely updates, interact with leadership, and share
insights on corporate initiatives.

External Communication: Strengthening Corporate
Presence

As one of the industry leader, SAIL's external communication
strategy is designed to foster strong stakeholder
relationships and maintain a high level of corporate visibility.
Your company employs a comprehensive approach that
integrates traditional and digital mediums to ensure
seamless communication with investors, customers, media,
and the general public.

Timely and transparent communication is fundamental to
SAIL's outreach. The Company actively shares updates on
financial performance, operational milestones, strategic
partnerships, and sustainability initiatives. Through well-
crafted press releases, industry reports, and digital content,
SAIL ensures stakeholders remain informed about its
ongoing contributions to India's steel sector. Social media
platforms serve as powerful external communication tools,
allowing SAIL to engage with audiences beyond traditional
corporate channels. With an active presence on X, LinkedIn,
Facebook, and Instagram, the Organisation disseminates
important updates regarding its business operations,
community programs, and sustainability efforts. This digital
outreach strengthens SAIL's thought leadership and visibility
in the industry.

Participation in national exhibitions further reinforces the
Company's brand presence. Your company's steel showcases
during India Steel, Bharat Mobility, IITF, etc. provide a strategic
platform to highlight its contributions to infrastructure,
industrial development, and economic growth. These
exhibitions align with initiatives such as Atmanirbhar Bharat,
reflecting SAIL's commitment to fostering self-reliance and
innovation in India's manufacturing sector. Beyond business-
focused communication, the Company plays an active
role in supporting Government initiatives. The Company
collaborates on programs such as Swachhata Pakhwada,
Run for Unity, Vigilance Awareness Week, Hindi Diwas, and
International Day of Yoga, ensuring widespread participation
and awareness. Through active dissemination of information,
SAIL amplifies these initiatives, reinforcing its commitment
to social and national development.

SAIL's communication efforts extend beyond traditional
corporate narratives, emphasizing its role in driving
progress and sustainability. By showcasing its contributions
to environmental responsibility, ethical governance, and
community welfare, the Company fosters meaningful
relationships and cultivates long-term trust among
stakeholders. With a strong nationwide presence, SAIL
recognizes its responsibility as an effective communicator.
Your company remains committed to ensuring transparent
and inclusive dialogue, reinforcing operational integrity and
corporate leadership. Its evolving communication strategy
continues to set benchmarks in employee participation,
stakeholder engagement, and brand positioning.

G. VIGILANCE ACTIVITIES

The objective of SAIL Vigilance is to facilitate an environment
enabling people to work with integrity, efficiency and in a
transparent manner, upholding highest ethical standards
for the organization. To achieve this objective, the Vigilance
Department carries out preventive, proactive and punitive
actions with greater emphasis in the preventive and
proactive functions. Following activities were undertaken
during the FY 2024-25:

•    To increase vigilance awareness amongst employees,
vigilance awareness sessions and workshops were
regularly held at various Plants and Units of the
Company. A total of 234 workshops involving 5271
participants were organized for enhancing Vigilance
Awareness on Whistle Blower Policy, Purchase/
Contract Procedures, Preventive Vigilance, Conduct
& Discipline Rules, Common Irregularities, Systems
& Procedures followed in SAIL, etc. Amongst these
training programmes, 25 dedicated two day Preventive
Vigilance training programs were organised during FY
2024-25, wherein, a total of 521 executives of SAIL have
been covered.

•    Preventive Checks including file scrutiny and Joint
Checks were conducted regularly in vulnerable areas
of the Company. A total of 2224 Preventive Checks
including file scrutiny and Joint Checks were conducted
at different Plants/ Units.

•    Vigilance provides vital inputs to the concerned
authorities for improving the prevailing systems for
bringing about more transparency. Accordingly, twelve
System Improvement Projects (SIPs) were undertaken
at different Plants/Units of SAIL.

•    16 cases were taken up for Intensive Examination
at different Plants/Units. During these Intensive
Examinations, high value procurement/contracts
are scrutinized comprehensively and necessary
recommendations were forwarded to concerned
departments for implementation.

•    As per the Guidelines of Central Vigilance Commission,
Vigilance Awareness Week was observed in SAIL during
28^th October to 4^th November, 2024. The week started
with administering the Integrity Pledge and reading
out the messages of dignitaries on 28^th October, 2024
at SAIL Corporate Office as well as in all Plants/Units
of SAIL. During the week, Workshops/Sensitization
Programmes, Customers Meet, etc. were organised.
Further, events like quiz, essay, slogan & drawing/
poster, debate competition, etc. were organized for the
employees across SAIL. As outreach measures, various
events like Speech/Oratory competition, Essay/Slogan
Drawing competition, etc. were organized for School/
College Students across various townships of SAIL.
During the Vigilance Awareness Week, 2024, two books
namely "DOs and DON'Ts" in printed form and the

e-magazine "Preventive Measures" were launched by
Vigilance Commissioner Shri A.S. Rajeev. In addition to
this, a Compendium of Case studies of vigilance cases of
the recent times was also launched during the Vigilance
Awareness Week, 2024. The following Training/
Workshops/ Programmes were organized during the
Vigilance Awareness Week, 2024:

» A Two-day workshop on the topic '360° Vigilance:
Preventive Vigilance Strategies, Proactive Vigilance,
Investigation Techniques & Complaint Management'
was organized at MTI, Ranchi on 4^th & 5^th October,
2024. The function was inaugurated by Vigilance
Commissioner Shri A.S. Rajeev and attended by
senior officials of CVC, SAIL and MECON.

» A Talk on 'Cyber Hygiene & Security' by subject
matter expert Shri Mukesh Mangal, ITS, DDG, DoT
was organized at Corporate Office.

» Vigilance awareness programmes/preventive
vigilance programmes were also organized at
almost all Plant/Unit locations covering around 800
employees.

» Essay/Slogan/Quiz/Debate/Elocution programmes
were organized at various locations of SAIL for
employees wherein around 1400 employees had
participated.

» Various programmes for Children were also
organized at various schools/colleges at various
Plant/Unit locations with about 2500 school/college
students had participated.

» Awareness programmes were also organized
through Gram Sabhas at various locations in which
around 780 persons had participated.

» Interactive sessions on PCP, GeM, CDA Rules,
Planning, Contracts Management were held for
employees with 800 participants being benefited.

•    In an another Participative Vigilance initiative taken up,
Ethics Club and Ethics Circle activities were undertaken
in different Plants/Units during the FY 2024-25. In order
to propagate ethical behavior in the society at large,
Ethics Clubs have been formed in the schools of SAIL
Townships with the belief that it is essential to create
a strong ethical and moral foundation for children to
facilitate formation of an ethically sustainable society.

•    The concept of Learn from Each Other (LEO) Workshops
has been started in Vigilance Department with the
aim of arriving at result oriented solutions in common
areas where complaints are being received in various
Plants/Units and also to standardize the functioning
of Vigilance. The LEO workshops provide a platform
for Vigilance executives from SAIL Plants/Units as
well as other PSUs to collaborate with each other
on carving out new paths to take on the challenges
of various important topics pertinent to Vigilance.
The main takeaways from these workshops are also

submitted to Higher Management for further necessary
actions. During the FY 2024-25, two LEO workshops
were organized. One on the titled, 'Receipt, Sampling,
Testing, Acceptance, and Accounting of Ferro Alloys',
was held at ISP on May 20/21, 2024. The other on the
topic 'Preparation of Charge Sheets', was organized at
RSP on December 13/14, 2024. Participants attending
the LEO workshops were Vigilance Officers from various
Units of SAIL and officers from other organizations.

•    The following five thrust areas were identified by SAIL
Vigilance for examination/scrutiny:

(i)    Scrutiny of cases in which more than one Repeat
Order has been placed.

(ii)    Scrutiny of cases where Work Order has been
placed on Single Tender Basis but executed by a
sub-contractor.

iii.    Scrutiny of Asset Registers and Land Records.

iv.    Scrutiny of educational qualifications/degrees w.r.t.
promotion cases where extra marks have been
awarded due to higher qualification.

v.    Scrutiny of Bill Payments against Performance
Based Items.

•    'Inspiration-Prerna', an in-house publication of SAIL
Vigilance is being published regularly. The above
publication contains case studies and informative
articles to enhance awareness of the readers.

•    As on 1^st April, 2024, a total of 68 complaints were
pending and the closing balance as on 31^st March, 2025
was 53. The summary of disposal of complaints during
2024-25 is as under:

Complaints Disposed:

Vigil Mechanism

The Company has adopted Vigil Mechanism for conducting
the affairs in a fair and transparent manner by adopting
highest standards of professionalism, honesty, integrity
and ethical behaviour. All employees of the Company and
Directors on the Board of the Company are covered under
this Mechanism. This Mechanism has been established for
complainant i.e. employee and includes a Director to report
concerns about unethical behaviour, actual or suspected
fraud or violation of Code of Conduct. It also provides for

adequate safeguards against the victimization of employees
who avail the Mechanism and allows direct access to the
Chairperson of the Audit Committee in exceptional cases. It
also provides for protection of any other employee assisting
in the investigation or furnishing evidence with regard to a
complaint.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

As per the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, Management Discussion
and Analysis Report covering the performance and outlook
of the Company is attached and forms part of this Report.

AUDITORS' REPORT ON STANDALONE FINANCIAL
STATEMENTS

The Statutory Auditors' Report on the Standalone Financial
Statements of the Company for the Financial Year ended
31^st March, 2025 along with Management's replies thereon
is placed at Annexure-I to this Report. The comments
of Comptroller & Auditor General of India (C&AG) on the
Standalone Financial Statements of the Company for the
Financial Year ended 31^st March, 2025 under Section 143(6)
(b) of the Companies Act, 2013 alongwith Management's
replies are placed at Annexure-II to this Report.

COST RECORDS & COST AUDITORS

The Company is required to maintain cost accounting records
at its various Steel Plants as required under the provisions
of Section 148 of the Companies Act, 2013. The Board of
Directors of the Company on the recommendation of the
Audit Committee appointed M/s. Shome & Banerjee, New
Delhi; M/s. Niran & Co., Bhubaneswar; and M/s. Narasimha
Murthy & Co., Hyderabad as Cost Auditors for the FY 2024-25.
The Board had fixed a fee of Rs.12.12 lakhs plus applicable
taxes and reimbursement of out of pocket expenses for
conducting the Audit of cost records maintained by the
Company for the FY 2024-25, which was ratified by the
shareholders in the last Annual General Meeting.

SECRETARIAL AUDITOR'S REPORT

In terms of the provisions of Section 204 of the Companies
Act, 2013, the Board of Directors has appointed M/s. Agarwal
S. & Associates, Company Secretaries, as the Secretarial
Auditor to conduct Secretarial Audit of the Company for the
FY ended on 31^st March, 2025. Secretarial Audit Report is
placed at Annexure-III to this Report.

With regard to the observation of the Secretarial Auditor,
that composition of the Board of Directors of the Company
was not as per requirements during the FY 2024-25, it
is stated that appointment of Independent Directors
including Woman Independent Director on the Board of the
Company is made by the Company based on nomination by
Government of India. The Company has requested Ministry
of Steel, Government of India for nomination of requisite
number of Independent Directors in its Board.

In respect of the observations regarding Composition
of the Audit Committee, Nomination and Remuneration
Committee and Risk Management Committee was not in

compliance with the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015 during a part of the
Financial Year 2024-25, it is mentioned that non-compliance
of the composition of these Committees is due to insufficient
number of Independent Directors on the Board of the
Company. However, on nomination by the Government of
India, four Independent Directors have been appointed
in the Board of Directors of the Company and accordingly,
composition of these Board Sub Committees is in compliance
with the prescribed Regulations of SEBI (Listing Obligations &
Disclosure Requirements) Regulations, 2015.

SECRETARIAL AUDITOR'S APPOINTMENT

Pursuant to Regulation 24A of SEBI (Listing Obligations &
Disclosure Requirements) Regulation, 2015, the Board of
Directors on the recommendation of the Audit Committee
and subject to approval of the Members in the Annual
General Meeting has recommended appointment of M/s.
Agarwal S. & Associates as Secretarial Auditor of the Company
for a period of five Financial Years commencing from 2025-26
to 2029-30.

CORPORATE GOVERNANCE

In terms of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Corporate Governance
Report and Auditors' Certificate on compliance of conditions
of Corporate Governance is placed at Annexure-IV to this
Report.

In terms of the SEBI Regulations, the Board has laid down
a Code of Conduct for all Board Members and Senior
Management of the Company. The Code of Conduct has
been uploaded on the website of the Company. All the Board
Members and Senior Management Personnel have affirmed
compliance with the Code.

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

In terms of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Business Responsibility
& Sustainability Report describing the initiatives taken by
the Company from Environmental, Social and Governance
perspective forms part of this Annual Report and is placed
at Annexure-V.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

IISCO-Ujjain Pipe and Foundry Company Limited, a wholly
owned subsidiary of the erstwhile Indian Iron and Steel
Company Limited (IISCO), was ordered to be wound up by
BIFR. The Official Liquidator is continuing its liquidation
process.

Your Company currently has two subsidiary Companies
namely, SAIL Refractory Company Limited (SRCL) and
Chhattisgarh Mega Steel Limited.

SRCL is operating the Salem Refractory Unit which was
acquired by SAIL from Burn Standard Company Limited on
16^th December, 2011. Chhattisgarh Mega Steel Limited was
incorporated as a Special Purpose Vehicle with an objective

of setting up of an Ultra Mega Steel Project. The project has
not taken off.

The Annual Accounts of the Subsidiary Companies and
related detailed information shall be made available to the
Shareholders of the holding and subsidiary companies,
seeking such information at any point of time. Further, the
Annual Accounts of the subsidiary companies are available
for inspection by any Shareholder at the Registered Office
of the Company and the Subsidiary Companies concerned
between 11 AM to 1 PM on working days. A hard copy of the
details of accounts of subsidiaries shall be furnished to the
shareholders on receipt of written request.

CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to provisions of Section 129(3) of the Companies Act,
2013, the duly Audited Consolidated Financial Statements of
the Company for the Financial Year ended 31^st March, 2025
are placed at Annexure-VI to this Report.

AUDITORS' REPORT ON CONSOLIDATED FINANCIAL
STATEMENTS

The Statutory Auditors' Report on the Consolidated Financial
Statements along with the Management's replies thereon
is placed at Annexure-VII to this Report. The comments
of Comptroller & Auditor General of India (C&AG) on the
Consolidated Financial Statements of the Company for the
Financial Year ended 31^st March, 2025 under Section 143(6)
(b) read with Section 129(4) of the Companies Act, 2013
along with Management's replies are placed at Annexure-
VIII to this Report. Further, the statement containing salient
features of the financial statements of the Subsidiary, Joint
Venture and Associate Companies in the prescribed Form
AOC-1 is placed at Annexure-IX to this Report.

RECOMMENDATIONS MADE BY THE COMMITTEE ON
PAPERS LAID ON THE TABLE (RAJYA SABHA) IN ITS 150^th
REPORT

During the FY 2024-25, the Reports of Comptroller and
Auditor General of India (C&AG) tabled in the Parliament do
not contain any Audit Para pertaining to SAIL.

ANNUAL RETURN

As per the provisions of the Companies Act, 2013,
the Annual Return for FY 2024-25 is available at
https://sail.co.in/sites/default/files/2025-08/ANNUAL-
RETURN-2024-25.pdf.

BOARD MEETINGS

During the year, 11 meetings of the Board of Directors of the
Company were held, the details of which are given in the
Corporate Governance Report at Annexure-IV, forming part
of this Annual Report.

AUDIT COMMITTEE

The Audit Committee of the Board was initially formed
by the Company in 1998. The Audit Committee has been

reconstituted from time to time in terms of the SEBI
Regulations and Companies Act, 1956/2013. The minutes of
the Audit Committee meetings are circulated to the Board,
discussed and taken note of. The composition and other
details pertaining to the Audit Committee are given in the
Corporate Governance Report at Annexure-IV.

INTERNAL FINANCIAL CONTROL (IFC) AND ITS ADEQUACY

Implementation of Internal Financial Control (IFC) in SAIL is
guided by established frameworks such as the Committee
of Sponsoring Organizations of the Treadway Commission
(COSO) model. The COSO framework provides a structured
approach for designing, implementing, and assessing
internal controls to ensure effective financial management
and compliance. SAIL's internal financial control system is
designed to provide a comprehensive framework for ensuring
financial accuracy, protecting assets, and maintaining
regulatory compliance. The company typically engages in
regular reviews and updates of its internal control systems to
adapt to changing regulatory requirements and operational
challenges.

SAIL has well established and documented policies and
procedures, which are adhered to for transparent, efficient
and ethical conduct of business and for safeguarding its
assets, prevention and detection of frauds and errors,
accuracy and completeness of the accounting records and
timely preparation of financial statements.

Further, the Company has a sound corporate governance
structure, and strong management processes, controls,
policies and guidelines which drives the Organization
towards its business objective and also meets the needs
of various stakeholders. SAIL's robust protocols such as
independent internal audit, documented policies, guidelines,
procedures, regular review by Audit Committee / Board, etc.
helps in compliance of Corporate Governance and Internal
Financial Controls under the Companies Act, 2013, SEBI
(LODR) Regulations, 2015, etc. SAIL is committed to the
highest standards of Corporate Governance where the Board
is accountable to all stakeholders for reporting effectiveness
of Internal Financial Control and its adequacy.

The adequacy of SAIL's internal financial control is reflected
in its audit reports, regulatory compliances, and effective risk
management. Regular updates and management oversight
helps in maintaining and enhancing these controls, ensuring
the company's financial stability and integrity.

The deployment of SAP Governance, Risk, and Compliance
(GRC) modules and IT platforms significantly enhances the
effectiveness of Internal Financial Control at SAIL. SAP GRC
modules are designed to integrate with the Organization's
financial and operational systems to streamline compliance,
risk management, and control processes.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(3)(c) of the Companies Act, 2013(the
Act), the Directors state that:

(i)    in the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with
proper explanation relating to material departures;

(ii)    the Directors have selected such Accounting Policies
and applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the Company
at the end of the Financial Year and of the profit or loss of
the Company for that period;

(iii)    the Directors have taken proper and sufficient care for
the maintenance of adequate Accounting Records in
accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and
detecting fraud and other irregularities;

(iv)    the Directors have prepared the Annual Accounts on a
Going-Concern basis;

(v)    the Directors have laid down internal financial control
to be followed by the Company and that such internal
financial controls are adequate and are operating
effectively; and

(vi)    the Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws and
that such systems are adequate and operating effectively.

INDEPENDENT DIRECTORS' DECLARATION

In terms of Section 149(6) of the Companies Act, 2013,
necessary declaration has been given by each Independent
Director stating that he/she meets the criteria of
independence. In terms of Section 149(7) of the Companies
Act, 2013, Independent Directors of the Company have
undertaken requisite steps towards registration of their
names in the data bank of Independent Directors maintained
with the Indian Institute of Corporate Affairs.

In the opinion of the Board, the Independent Director(s)
appointed during the year possess integrity, necessary
expertise & experience and are independent of the
Management.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
UNDER SECTION 186

In terms of the provisions of Section 186 of the Companies
Act, 2013 read with Companies (Meetings of Board and its
Powers) Rules, 2014, the details of Loans, Guarantees and
Investments given during the FY ended on 31^st March, 2025
are given in Annexure-X to this Report.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH
RELATED PARTIES REFERRED TO IN SUB-SECTION (1) OF
SECTION 188

All the contracts / arrangements / transactions entered
by the Company during the FY 2024-25, with the related
parties were in the ordinary course of business and on an

arm's length basis. The transactions with the related parties
have been disclosed in the financial statements. Therefore,
particulars of contracts or arrangements with related parties
referred to in Section 188(1) along with the justification for
entering into such contract or arrangement in Form AOC-2
do not form part of the Report.

DIVIDEND DISTRIBUTION POLICY

In terms of the Regulation 43A of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, the
Board of Directors of the Company has adopted Dividend
Distribution Policy. The Policy is uploaded on the website of
the Company-https://sail.co.in/sites/default/files/Dividend_
Distribution_Policy_ 2017.pdf

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND OUTGO

In accordance with the provisions of Section 134(3)
(m) of the Companies Act, 2013 read with Rule 8 of the
Companies(Accounts) Rules, 2014, the particulars relating to
Conservation of Energy, Technology Absorption and Foreign
Exchange Earnings and Outgo are given in Annexure-XI to
this Report.

ENTERPRISE RISK MANAGEMENT

SAIL has a comprehensive Enterprise Risk Management (ERM)
Policy to ensure robust risk identification, assessment and
mitigation across all levels of the Organization. The policy
serves as a guiding framework for managing business and
operational risks, aligning risk management with corporate
objectives to support sustainable growth.

The ERM Policy mandates a structured and proactive
approach to risk management, incorporating best practices
to mitigate potential threats while enabling strategic
opportunities. It emphasizes compliance with regulatory
frameworks, governance standards and internal controls to
strengthen resilience and decision-making.

Key aspects of SAIL's ERM framework include:

•    Establishing a well-defined Risk Governance Structure,
with clear roles and responsibilities at all levels.

•    Implementing a systematic process for risk identification,
evaluation, escalation, mitigation, and monitoring.

•    Maintaining comprehensive risk documentation,
including a Risk Register, Risk Assessment Template,
Risk Profile, and Risk Escalation Matrix.

•    Conducting periodic risk reviews and reporting risks to
the Board through the Risk Management Report.

•    Enhancing a risk-aware culture across the Organization
through training and awareness initiatives.

•    Ensuring integration of risk management principles
within HR policies and performance measurement
criteria.

SAIL follows a bottom-up approach to risk management,
with each business unit having its own Risk Management

Committee responsible for overseeing the unit's Risk
Management Framework. At the corporate level, the
Enterprise Risk Management (ERM) division operates
under the Chief Risk Officer, the Risk Management Steering
Committee (RMSC) chaired by the Director (Finance) at
Corporate Office and the SAIL Risk Management Committee
(SRMC) headed by an Independent Director. In alignment
with LODR Guidelines, two SRMC meetings were held during
the year 2024-25.

By fostering a culture of risk awareness and accountability,
SAIL remains committed to safeguarding stakeholder
interests, enhancing business continuity, and achieving
long-term sustainability in a dynamic risk environment.

SAIL's Risk Management Policy Statement can be accessed on
its official website at https://sail.co.in/company/company-
policies.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

SAIL's Social Objective is synonymous with Corporate Social
Responsibility. Apart from the business of manufacturing
steel, the objective of your Company is to conduct business
in ways that provide social, environmental and economic
benefits to the communities in which it operates. For any
organization, CSR begins by being aware of the impact of
its business on society. With the underlying philosophy and
a credo to make a meaningful difference in people's lives,
your Company has been structuring and implementing CSR
initiatives from the inception. These efforts have seen the
erstwhile obscure villages, where SAIL Plants are located,
turn into large industrial hubs today.

The CSR initiatives of your Company are undertaken in
conformity to the Companies Act, 2013, Schedule-VII to
the Companies Act, 2013, Companies (Corporate Social
Responsibility Policy) Rules, 2014, Companies (CSR Policy)
Amendment Rules, 2021 and 2022. SAIL carries out CSR
projects mainly in and around periphery of steel townships,
mines and far flung locations across the Country in the areas
of Rural Development including maintenance of Model Steel
Villages, providing Education, Healthcare, Immunisation,
Ante/ post-natal care, Access to Drinking Water, Sanitation,
Road side tree plantation, Environment Sustainability,
Women Empowerment, Assistance to Sr. Citizens & Divyangs,
Sustainable Income Generation through Self-Help Groups,
Promotion of Art and Culture, etc.

The details of various CSR initiatives taken by the Company
along with the Report on CSR in prescribed format are
placed at Annexure-XII to this Report. The CSR Policy of
the Company is available on the website of the Company
www.sail.co.in.

Your Company's extensive and specialised Healthcare
Infrastructure provided specialized and basic healthcare to
nearly 186.64 lakh people living in the vicinity of its Plants
and Units during the period 2011-2025. In order to deliver
quality healthcare at the doorsteps of the needy, regular
health camps are being organised in various villages on fixed
days for the people living in the periphery of Plants/Units/
Mines.

During the FY 2024-25, regular Health Camps have been
organized and 5 Mobile Medical Units (MMUs) extended
quality healthcare to about two lakh villagers at their
doorsteps in peripheral areas of Plants, Units and Mines. 24
Primary Health centres at Plants exclusively provided free
medical care and medicines to more than 90,000 patients
during FY 2024-25.

Education:

To develop the society through education, SAIL is supporting
over 77 schools, providing education to more than 40,000
children in the steel townships, 22 Special Schools (Kalyan,
Mukul & DAV Vidyalayas) are benefiting around 12000 BPL
category students at integrated steel plants and mines
locations with facilities of free education, mid-day meals,
uniform including shoes, text books, stationary items, school
bag, water bottles, etc., under CSR. More than 450 children
from tribal and naxal-affected areas are getting free of
cost comprehensive educational facilities viz. Schooling,
Accommodation, Meals, Uniform, Textbooks, Infrastructure,
etc. at Saranda Suvan Chhatravas and Central School,

Kiriburu; Gyanodaya Chhatravas, BSP School Rajhara, Bhilai;
Gyanjyoti Yojna, Bokaro; and other schools.

Your Company in association with the Akshaya Patra
Foundation, is providing Mid-day meals and dry ration kits
to around 60,000 students in over 600 Govt. schools in Bhilai
and Rourkela.

Women Empowerment & Sustainable Income Generation:

Vocational and specialised skill development training
targeted towards sustainable income generation has been
provided to about 1600 youths and 2400 women of peripheral
villages in areas such as Nursing, Physiotherapy, LMV Driving,
Computers, Mobile repairing, Welder, Fitter, Electrician
training, Improved agriculture, Mushroom cultivation,
Goatery, Poultry, Fishery, Achar/Pappad/Agarbati/Candle
making, Screen printing, Handlooms, Sericulture, Yarn
Weaving, Tailoring, Sewing and Embroidery, Gloves, Spices,
Towels, Gunny-bags, Low-cost-Sanitary Napkins, Sweet Box,
Bans/Jute Shilp, Smokeless challah making, etc. About 474
youths have been sponsored for ITI training at ITIs Bolani,
Bargaon, Baliapur, Rourkela and Bokaro Private ITI, etc.

Connectivity & Water facilities in Rural Areas:

Over 79.03 lakh people across 450 villages have been
connected to mainstream by SAIL, since its inception, by
constructing and repairing roads. Over 8176 water sources
have been installed, since inception, thereby enabling easy
access to drinking water to over 50 lakh people living in far-
flung areas.

Environment Sustainability:

Maintenance of parks, water bodies, botanical gardens
and plantation & maintenance of over 5 lakh trees in the
townships is being undertaken.

Divyang (children/people) are being supported through
provision of equipment like-tricycle, motorized vehicles,
calipers, hearing aids, artificial limbs, etc. Your Company
supports centres and programmes at its Plants like "Schools
for blind, deaf & mentally challenged children" and "Home
and Hope" at Rourkela; "Ashalata Kendra" at Bokaro; various
programs like "Handicapped Oriented Education Program"
and "Durgpaur Handicapped Happy Home" at Durgapur;
and "Cheshire Home" at Burnpur. Old age homes are being
supported at different Plant townships like "Siyan Sadan"
at Bhilai, "Abasar", "Acharya Dham" at Durgapur, "Sr. Citizens
Home" at Rourkela, etc. Series of events were organised
across the Company to celebrate the 'International Day of
Persons with Disabilities' commencing on 3^rd December,
2024 in alignment of ongoing 'Azadi ka Amrit Mahotsav'
The assistive aids & devices like Tricycle, Motorized Vehicles,
Calipers, Hearing Aids, Smart Phones, Smart Canes, etc.
provided by Artificial Limbs Manufacturing Corporation
of India (ALIMCO) were distributed among Divyangjans
through Plants/Units and Corporate Office at New Delhi of
your Company.

Sports, Art & Culture:

Mahotsav, Gramin Lokotsav are organised every year. Bokaro
Steel Plant organised Special Olympics Bharat (SOB) under
National Sports Preparatory Training Camps for participation
of the Divyang athletes in the Special Olympics World Games
and other sports tournaments.

Development of Aspirational Districts:

In order to provide comprehensive development of both
physical and social infrastructure, SAIL has undertaken CSR
activities in 6 Aspirational Districts, viz. Kanker, Narayanpur
and Rajnandgaon in Chhattisgarh and West Singhbhum,
Bokaro, Ranchi in Jharkhand and Banka in Bihar.

SAIL Employees Rendering Volunteerism and Initiatives
for Community Engagement (SERVICE):

It supports volunteer activities and community outreach by
SAIL employees.

REPORTING OF FRAUD U/SECTION 143(12)

M/s.JN Gupta & Co LLP, Statutory Auditors, vide email dated
7^th February, 2025 has forwarded a letter dated 27^th January,
2025 addressed to the Board of Directors, providing details
of the fraudulent transactions identified by the Finance
& Accounts Department of DSP in connection with the
SAIL Pension Scheme and Payroll Payments. Initially 185
fraudulent transactions were detected amounting to
Rs.3.33 crore. Further scrutiny revealed 18 more fraudulent
transactions totalling Rs. 0.27 crore. An amount of Rs.0.45
crores have been reclaimed so far. The implicated Executives
have been suspended and Departmental and Police
enquiries are ongoing and coordination with banks to
freeze accounts of unauthorised beneficiaries is underway.
Further, legal remedies have also been initiated against the
implicated employees. The Board and the Audit Committee
was informed of the fraud and the remedial measures
undertaken to immediately review and strengthen the
internal control systems to plug the loop holes, if any.

PERFORMANCE EVALUATION OF DIRECTORS AND BOARD

Ministry of Corporate Affairs has vide its Notification dated
5^th June, 2015 has exempted Government Companies from
the provisions of the Companies Act, 2013 which, inter-
alia, provides that Sub Sections (2), (3) & (4) of Section
178 regarding appointment, performance evaluation and
remuneration shall not apply to Directors of the Government
Companies. Further, the Ministry of Corporate Affairs
vide Notification dated 5^th July, 2017 has notified certain
amendments in Schedule IV of the Companies Act, 2013,
according to which, provisions relating to evaluation of
performance of Non-Independent Directors, Chairperson
and Board have been exempted for Government Companies.

PARTICULARS OF EMPLOYEES

In terms of the provisions of Section 197(12) of the
Companies Act, 2023 read with Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel)
Rules, 2014, every listed company is required to disclose the
ratio of the remuneration of each director to the median
employee's remuneration and details of employees receiving

remuneration exceeding limits prescribed from time to time
in the Board's Report.

Ministry of Corporate Affairs vide its Notification dated
5^th June, 2015 has exempted Government Companies
from complying with the provisions of Section 197 of the
Companies Act, 2013. Accordingly, such particulars have not
been included in the Board's Report.

GENERAL DISCLOSURES

i.    During the year, the Company has not accepted any
deposits under the Companies Act, 2013.

ii. No significant or material orders were passed by
the Regulators or Courts or Tribunals impacting the
going concern status and Company's operations in
future. However, attention of Members is drawn to the
statement on contingent liabilities in notes forming part
of the Financial Statements.

iii.    During the year, there has been no change in the nature
of Business of the Company.

iv.    During the year, no application was made and no
proceeding is pending under the Insolvency and
Bankruptcy Code, 2016.

v.    Government of India, Ministry of Steel, vide its letters
dated 19^th January, 2024 in exercise of the powers
conferred by sub-rule (1) of Rule 20 of the Conduct,
Discipline and Appeal Rules, 1977 of Steel Authority of
India Limited, had placed Shri V.S. Chakravarthy, Director
(Commercial) and Shri A.K. Tulsiani, Director (Finance) on
suspension with effect from 19^th January, 2024. Further,
complying with the Ministry of Steel, Government of
India, letter dated 19^th January, 2024, the Company had
placed 26 below Board Level Officials of the Company, on
suspension with effect from 19^th January, 2024. Interim
arrangements were made to continue uninterrupted
operations of the Company. Subsequently, Government of
India, Ministry of Steel, vide Orders dated 28^th June, 2024,
has revoked the suspension of Shri V.S. Chakravarthy,
Director (Commercial) and Shri A.K. Tulsiani, Director
(Finance) with immediate effect. Further, the Company
has revoked the suspension of 25 below Board Level
Officials of the Company, with immediate effect, with
one official having superannuated in the interim period.

vi.    There has been no receipt of remuneration or commission
by the Chairman & Managing Director or the Whole Time
Directors of the Company from any of its Subsidiary
Companies.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

•    Smt. Neelam Sonker (DIN:03111659), Independent
Director, had tendered her resignation vide letter dated
7^th April, 2024, with immediate effect.

•    Shri Birendra Kumar Tiwari (DIN:09699855) has been
appointed as Director (In-charge, Bokaro Steel Plant)
w.e.f. 20^th April, 2024.

•    Smt. Sukriti Likhi (DIN:01825997), Government
Nominee Director, has ceased to be Director w.e.f. 19^th
August, 2024.

•    Shri    Ashok    Kumar Tripathy (DIN:02485365),

Independent Director, has ceased to be Director w.e.f.
7^th November, 2024.

•    Shri Kanhaiya Sarda (DIN: 06792668), Independent
Director, has ceased to be Director w.e.f. 11^th November,
2024.

•    Shri Sagi Kasi Viswanatha Raju (DIN:00434856),
Independent Director, has ceased to be Director w.e.f.
15^th November, 2024.

•    Dr. Gopal Singh Bhati (DIN:09406763), Independent
Director, has ceased to be Director w.e.f. 17^th November,

2024.

•    Shri Arvind Kumar Singh (DIN:09725842), Director
(Technical, Projects & Raw Materials), has ceased to be
Director w.e.f. 30^th November, 2024.

•    Shri Atanu Bhowmick (DIN:08891338), Director (In¬
charge, Rourkela Steel Plant), has ceased to be Director
w.e.f. 31^st December, 2024.

•    Shri Brijendra Pratap Singh (DIN:08665585), Director
(In-charge, Burnpur & Durgapur Steel Plant), has ceased
to be Director w.e.f. 8^th January, 2025 (F/N).

•    Shri Sanjeet (DIN:09833776), Government Nominee
Director, was on the Board of Directors from 9^th January,
2025 to 17^th January, 2025.

•    Shri Manish Raj Gupta (DIN:10905637) has been
appointed as Director (Technical, Projects & Raw
Materials) w.e.f. 14^th January, 2025.

•    Shri Alok Verma (DIN:10905643) has been appointed
as Director (In-charge, Rourkela Steel Plant) w.e.f. 14^th
January, 2025.

•    Shri Anil Kumar Tulsiani (DIN:08742907), Director
(Finance), has ceased to be Director w.e.f. 31^st March,

2025.

•    Dr. Gopal Singh Bhati (DIN:09406763) has been re¬
appointed as an Independent Director w.e.f. 21^st April,
2025.

•    Dr. Anju Bajpai (DIN:09478503) has been appointed as
an Independent Director w.e.f. 21^st April, 2025.

•    Shri Manjeet Kumar Razdan (DIN:09413663) has been
appointed as an Independent Director w.e.f. 21^st April,
2025.

•    Prof.(Dr.) K. Jayaprasad (DIN:09585722), Independent
Director, has ceased to be Director w.e.f. 25^th April, 2025.

•    Dr. Ashok Kumar Panda, (DIN:08532039) has been
appointed as Director (Finance) w.e.f. 30^th April, 2025.

•    Shri Anirban Dasgupta (DIN:06832261), Director (In¬
charge, Bhilai Steel Plant) has ceased to be Director
w.e.f. 30^th April, 2025.

•    Shri Ashish Chatterjee (DIN:07688473) has been
appointed as Government Nominee Director w.e.f. 11^th
June, 2025.

•    Shri Vejendla Srinivasa Chakravarthy (DIN:09370715),
Director (Commercial) has ceased to be Director w.e.f.
30^th June, 2025.

•    Shri Pranoy Roy (DIN:10123502) has been appointed as
an Independent Director w.e.f. 8^th July, 2025.

•    Shri Surajit Mishra (DIN:11166409) has been appointed
as Director (In-charge, Burnpur and Durgapur Steel
Plants) w.e.f. 15^th July, 2025.

•    Shri Chitta Ranjan Mohapatra (DIN:11051608) has been
appointed as Director (In-charge, Bhilai Steel Plant)
w.e.f. 15^th July, 2025.

ACKNOWLEDGEMENT

The Board of Directors of your Company wish to place on
record their appreciation for the sincere, untiring & dedicated
efforts and contribution made by every member of the
SAIL Family. The Directors acknowledge with deep sense
of appreciation, the valuable guidance, support and co¬
operation received from Government of India, particularly
Ministry of Steel, Regulatory & Statutory Authorities,
Ministry of Environment, Forests & Climate Change, DIPAM,
NITI Aayog, Department of Public Enterprises, Railways,
State Governments, Electricity Boards, etc. The Board also
extend its heartfelt thanks to all its Stakeholders, including
Members, Investors, Customers, Vendors, Bankers and
Consultants for their continued support and unwavering
confidence reposed in the Company.

The Directors also thank the Comptroller & Auditor General
of India, Statutory Auditors, Cost Auditors, Secretarial Auditor
and other professionals associated with the Company for
their valued and constructive suggestions.

For and on behalf of the Board of Directors

<y

Place : New Delhi    (Amarendu Prakash)

Date : 22^nd August, 2025    Chairman & Managing Director