New Delhi: The Steel Authority of India (SAIL) on Sunday said it expects its production to go up to 12.6 million tonnes in the current financial year.

"We have set a target to produce 12.6 million tonnes steel in the current fiscal and hope to achieve this by utilising more than 114 per cent of capacity," a SAIL spokesperson said.

The authority, however, did not divulge the actual production it had recorded in the 2010-11 fiscal.

The state-run firm had produced 12.5 million tonnes in 2009-10 out of its total installed capacity of 14.35 mtpa now.

Out of the total production, 4.36 million tonnes were value-added variety, which usually fetches more revenue than ordinary steel.

"We will maintain our thrust in the current fiscal on producing value-added steels more than we did in the previous years," he added.

SAIL chairman C S Verma had earlier said that the company would target to produce more than half of the total production as value-added steel by 2012-13 as its capacity goes up to 24.6 million tonnes.

“The share is further likely to go up to around 60 per cent as the company reaches 60 million tonnes capacity by 2020,” he said.

Globally, all major steel firms are now concentrating on producing more value-added steels as they fetch higher revenue. The demand for such varieties is also growing among the users.

The bottom line of Korean and Japanese firms are better than their Indian peers though they neither have coking coal nor iron ore deposits of their own.

In contrast, though almost all Indian firms have access to iron ore, their profitability is lower than Japanese and Korean firms. This is simply because they produce more value-added products than Indian steel makers.

(Agencies)