Lok Sabha Question No. 310 (UNSTARRED), answered on 2017-12-18
Subject: Steel Consumption
Ministry: STEEL
Asked by: BANSHILAL MAHTO

## LOK SABHA UNSTARRED QUESTION NO.310 FOR ANSWER ON 18/12/2017

## STEEL CONSUMPTION

310. DR. BANSHILAL MAHATO:

Will the Minister of STEEL be pleased to state:

- (a) whether the steel consumption has gone up in the country during the last few years;
- (b) if  so,  the  details  of  the  total  demand,  production, consumption and import of steel  during  each  of  the  last  three  years  and  the  current  year  along  with  the percentage of increase registered in this respect;
- (c) whether  the  steel  industry,  specially  small  and  medium  steel  plants  are suffering due to inadequate supply of iron ore and if so, the details thereof;
- (d) whether the Government proposes to raise the import duty on steel and export duty on iron ore, if so, the details thereof and if not, the reasons therefor; and
- (e) the steps taken by the Government to stop illegal export of iron ore and ensure adequate supply of raw material including iron ore for the domestic steel industry?

## ANSWER

THE MINISTER OF STATE FOR STEEL

- (a) Yes, Madam,

(b) The details of the total demand, production, consumption and import of steel during each of the last three years and the current year along with the percentage of increase registered in this respect are given below:-

(Figures in Million tonnes)

| Year        | Production for sale of Total finished steel in India   | Production for sale of Total finished steel in India   | Total finished steel consumption in India   | Total finished steel consumption in India   | Total finished steel Imports in India   | Total finished steel Imports in India   |
|-------------|--------------------------------------------------------|--------------------------------------------------------|---------------------------------------------|---------------------------------------------|-----------------------------------------|-----------------------------------------|
|             | Production for sale (mt)                               | Change over last year (%)                              | Real Consumption (mt)                       | Change over last year%                      | Import (mt)                             | Change over last Year %                 |
| 2014-15     | 92.16                                                  | 5.1                                                    | 76.99                                       | 3.9                                         | 9.321                                   | 71.03                                   |
| 2015-16     | 90.98                                                  | -1.3                                                   | 81.52                                       | 5.9                                         | 11.71                                   | 25.6                                    |
| 2016-17     | 101.81                                                 | 11.9                                                   | 84.04                                       | 3.1                                         | 7.23                                    | -38.3                                   |
| Source: JPC | Source: JPC                                            | Source: JPC                                            | Source: JPC                                 | Source: JPC                                 | Source: JPC                             | Source: JPC                             |

- (c) Production of iron ore in the country is more than the requirement of domestic Steel Industry.

(d) With a view to provide level playing field to domestic steel industry from the surge  in  cheap  imports,  Government,  inter-alia,  imposed  various  trade  remedial measures  such  as  Anti-Dumping  Duty  and  Safeguard  Duty  which  have  led  to  a considerable reduction in imports and improvement in price realisation.

(SHRI VISHNU DEO SAI)

(e) In order to prevent illegal export of iron-ore, Hon'ble Supreme Court in 2011 and 2012 banned iron ore mining in Karnataka and Goa.  Subsequently a production cap was put on iron ore mining in Karnataka and Goa.

To  ensure  that  adequate  Iron  ore  is  available  in  India  for  value  addition  in downstream industries, Government has levied an ad-valorem Export duty of 30% on iron  ore  of  grades  more  than  58%  Fe.    In  order  to  ensure  sufficient  supply  of  raw materials including iron ore and coal to domestic steelmakers, the government has enacted MMDR  Amendment  Act,  2015 and  Coal  Mines  (Special  Provisions)  Act, 2015.  Government has also notified National Mineral Exploration Policy to facilitate comprehensive  exploration and  increased the emphasis  on  beneficiation  and agglomeration of iron ore.

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