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New Delhi: In view of subdued production last fiscal, Steel Minister Beni Prasad Verma Tuesday directed state-run manganese ore producer MOIL to initiate steps for increasing output and diversify into value-added products.

"I have asked MOIL to improve production in coming years and go for forward integration by diversifying into value-added products," Verma said after reviewing the performance of the state-run company.

MOIL had produced 10.70 lakh tonnes of manganese ore in 2011-12 compared to 11.50 lakh tonnes during the previous year.

MOIL Chairman and Managing Director K J Singh said the reduction in production was due to slackness in the market, less demand for fines grade ore and import of ore from other countries.

MOIL's turnover during 2011-12 also came down to Rs 905.68 crore against Rs 1,145.31 crore in the previous fiscal.

The net profit of the company also came down to Rs 410.77 crore from Rs 588.06 crore during the previous year.

Verma also reviewed the performance of MECON and asked the state-run engineering and consultancy services provider to improve efficiency and diversify into areas other than steel.

"The company must diversify into areas of power, oil and gas and infrastructure. It has to ensure that quality of service rendered by the company is constantly upgraded, as complacency in this sphere will affect both the company and its customers," he added.

During 2011-12, MECON had recorded Rs 643.83 crore turnover and Rs 136.36 crore profit after tax.

• [Editor:editor]