Lok Sabha Question No. 5966 (UNSTARRED), answered on 2017-04-10
Subject: Performance of Steel Sector
Ministry: STEEL
Asked by: BHARAT SINGH, MANSHANKAR NINAMA, MAHEISH GIRRI, RAMESH POKHRIYAL NISHANK

## LOK SABHA

## UNSTARRED QUESTION NO.5966 FOR ANSWER ON 10/04/2017

## PERFORMANCE OF STEEL SECTOR

5966.  SHRI BHARAT SINGH: SHRI MANSHANKAR NINAMA: SHRI MAHEISH GIRRI: DR. RAMESH POKHRIYAL 'NISHANK':

Will the Minister of STEEL be pleased to state:

- (a) the contribution of steel sector in the domestic product of the country during the year 2015-16;
- (b) the  current  status  of  production,  import,  demand  and  supply  of  steel  in  the country at present;
- (c) the details of the production, import, demand and supply in the country during each of the last three years;
- (d) the percentage of the non-performing assets of the public sector Banks in the Steel industry; and
- (e) the corrective steps taken by the Government in this regard?

## ANSWER

THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

- (a) The  domestic  steel  industry  generally  contributes  around  2  per  cent  in  the nation's Gross Domestic Product (GDP).
- (b) The crude steel production, production for sale, import, export, real consumption of total finished steel (non-alloy + alloy/stainless) during April-Feb.201617 is shown below:-

| Period    | Crude steel     | Total Finished Steel (non-alloy + alloy) (mt)   | Total Finished Steel (non-alloy + alloy) (mt)   | Total Finished Steel (non-alloy + alloy) (mt)   | Total Finished Steel (non-alloy + alloy) (mt)   |
|-----------|-----------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|
|           | Production (mt) | Production for sale                             | Import                                          | Export                                          | Consumption                                     |
| 2016-17 * | 97.38           | 101.27                                          | 7.43                                            | 8.24                                            | 83.93                                           |

Source: Joint Plant Committee (JPC); * provisional figures; mt=million tonnes

- (c) The details of  crude steel production, production for sale, import, export, real consumption of total finished steel (non-alloy + alloy/stainless) in the country during the last three years is shown below:-

| Year    | Crude steel production   | Total Finished Steel (mt)   | Total Finished Steel (mt)   | Total Finished Steel (mt)   | Total Finished Steel (mt)   |
|---------|--------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|
|         | (mt)                     | Production for sale         | Import                      | Export                      | Real Consumption            |
| 2013-14 | 81.69                    | 87.67                       | 5.45                        | 5.99                        | 74.09                       |
| 2014-15 | 88.98                    | 92.16                       | 9.32                        | 5.59                        | 76.99                       |
| 2015-16 | 89.79                    | 90.98                       | 11.71                       | 4.08                        | 81.52                       |

Source:  Joint Plant Committee (JPC)

- (d) The total Advances to Iron and Steel sector pertaining to Public Sector Banks as on 31.12.2016 was Rs.2,80,728.27 crore and Gross Non Performing Assets were of  Rs.1,46,668.85  crore  (source:  Department  of  Financial  Services,  Ministry  of Finance).
- (e) The Government has taken the following remedial measures in recent times to support the domestic steel:-
- i) To provide level playing field to the domestic steel producers, Government has extended  Minimum  Import  Price(MIP)  on  19  steel  products  till  4 th February, 2017 vide DGFT Notification No. 31/2015-2020 dated 03.12.2016.
- ii) The  Government  has  launched  the  'Make-in-India'  initiative  to  focus  on manufacturing and infrastructure, which will help in promoting the demand and consumption of steel in the country.
- iii) Increase the peak rate of Basic Customs Duty on both flat and non-flat steel to 15% from 10% in the Union Budget 2015-16.
- iv) Increased the import duty on ingots & billets, alloy steel (flat & long), stainless steel (long) and non-alloy long products to 7.5% (from 5%) and non-alloy and other alloy flat products to 10%(from 7.5%).  This has been further revised in August, 2015.  Currently, import duty on flat steel is applicable at 12.5% on long steel products at 10% and on semi-finished steel products at 10%.
- v) Levied  the  Anti-Dumping  Duty  for  five  years  on  imports  of  certain  variety  of hot-rolled flat products of stainless steel from China ($309 per tonne), Korea ($180 per tonne) and Malaysia ($316 per tonne).
- vi) Imposed the Safeguard Duty of 20% in March 2016 on hot-rolled flat products of non-alloy steel, in coils of width of 600 mm or more.

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