Essar Steel is likely to touch an export turnover of $200 million by the end of the current financial year. The company's export turnover in 2001-02 was negligible. It is learnt that the company has been exporting 60,000-70,000 tonnes of hot-rolled products per month.

"With the turnaround in the steel sector during the current financial year, both export and domestic markets have improved for us," said J Mehra, director, Essar Group. The company's main markets have been the West Asian countries. Mehra said that the company is scouting for new export markets in Asia and Africa.

Mehra said that the company was producing to its capacity unlike last year when capacity utilisation was about 55 per cent only. Without divulging figures, Mehra said that the company will also undertake de-bottlenecking exercises soon at its Hazira plant.

Industry analysts said that the government's decision to increase the duty entitlement pass book (DEPB) scheme has also helped the overall growth of the export market. The DEPB rate on various flat products was reduced in the last Exim policy without any justification, said sources.

The rates on galvanised steel was reduced to 14 per cent from 18 per cent, while on hot rolled it was reduced to 12 per cent from 13 per cent and for cold rolled product the rates have been brought down to 15 per cent from 17 per cent.

Meanwhile, it is understood that Essar has paid Rs 3,500 crore in the last five years by way of servicing its interest and financial loans.