Lok Sabha Question No. 603 (UNSTARRED), answered on 2017-02-06
Subject: Steel Production
Ministry: STEEL
Asked by: BHARATI DHIRUBHAI SHIYAL, KIRIT SOMAIYA, SUBHASH PATEL, RANJANBEN BHATT, CHINTAMANI MALVIYA, CHINTAMAN NAVSHA WANAGA

## LOK SABHA UNSTARRED QUESTION NO.603 FOR ANSWER ON 06/02/2017

## STEEL PRODUCTION

603. DR. BHARATIBEN D. SHYAL: DR. KIRIT SOMAIYA: SHRI SUBHASH PATEL: SHRIMATI RANJANBEN BHATT: PROF. CHINTAMANI MALVIYA: ADV. CHINTAMAN NAVASHA WANAGA:

Will the Minister of STEEL be pleased to state:

- (a) whether the steel production and demand has declined during the last three years;
- (b) if  so,  the  details  thereof  and  the  reasons  therefor  along  with  the  expected percentage growth of steel production and consumption during the current year;
- (c) whether the steel imports declined and exports increased during the last year, if so, the details thereof and the reasons therefor;
- (d) whether the steel industry  and  its  associated  mining  and  metallurgy  sectors have got major investments during the last three years, if so, the details thereof; and
- (e) the steps taken by the Government to boost steel production and consumption in the country?

## ANSWER

THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a)&(b):  No,  Madam.      There  has  not  been  any  decline  in  the  production  and consumption of steel in  the  country  during  the  last  3  years,  as  shown  in  the  table below:

| Year                                                                     | Crude Steel Production Qty. (mt.)                                        | Percentage Growth                                                        | Real consumption of Finished Steel                                       | Real consumption of Finished Steel                                       |
|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|
| Year                                                                     | Crude Steel Production Qty. (mt.)                                        | Percentage Growth                                                        | Real Consumption Qty. (mt.)                                              | Yearly %Increase in Real consumption                                     |
| 2013-14                                                                  | 81.69                                                                    | 4.3                                                                      | 74.09                                                                    | 0.8                                                                      |
| 2014-15                                                                  | 88.98                                                                    | 8.9                                                                      | 76.35                                                                    | 3.1                                                                      |
| 2015-16                                                                  | 89.77                                                                    | 0.9                                                                      | 80.44                                                                    | 4.5                                                                      |
| April-Dec., 2015                                                         | 66.52                                                                    |                                                                          | 59.54                                                                    |                                                                          |
| April-Dec.,2016*                                                         | 72.34                                                                    | 8.8                                                                      | 61.54                                                                    | 3.4                                                                      |
| Source: Joint Plant Committee (JPC) : mt. = Million Tonnes * Provisional | Source: Joint Plant Committee (JPC) : mt. = Million Tonnes * Provisional | Source: Joint Plant Committee (JPC) : mt. = Million Tonnes * Provisional | Source: Joint Plant Committee (JPC) : mt. = Million Tonnes * Provisional | Source: Joint Plant Committee (JPC) : mt. = Million Tonnes * Provisional |

(c) The imports had increased and export declined in the last year, as illustrated in the table below. However, after taking several trade remedial measures, such as minimum import price, introduction of BIS quality control, anti-dumping and safeguard duty, imports of steel have fallen 29.4% and exports increased by 80% during April December, 2016 over the same period in the preceding year, providing space for the domestic industry to produce more for the market.

| Import and Export of Finished Steel in Million Tonnes       | Import and Export of Finished Steel in Million Tonnes       | Import and Export of Finished Steel in Million Tonnes       | Import and Export of Finished Steel in Million Tonnes       | Import and Export of Finished Steel in Million Tonnes       |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| Year                                                        | Import                                                      | Export                                                      | %Change in Import                                           | %Change in Export                                           |
| 2015-16(P)                                                  | 11.71                                                       | 4.08                                                        | 25.7                                                        | -25.8                                                       |
| April - Dec. '15                                            | 7.78                                                        | 2.76                                                        |                                                             |                                                             |
| April - Dec. '16*                                           | 5.49                                                        | 4.97                                                        | -29.4                                                       | 80.0                                                        |
| Source: JPC : Annual Statistics various years; *Provisional | Source: JPC : Annual Statistics various years; *Provisional | Source: JPC : Annual Statistics various years; *Provisional | Source: JPC : Annual Statistics various years; *Provisional | Source: JPC : Annual Statistics various years; *Provisional |

(d) Steel being a deregulated sector, decisions regarding investment are taken by  the  individual  steel  producers,  based  on  various  factors,  including  commercial considerations and market dynamics.  It may be mentioned that a total of 25 Million Tonnes  of  crude  steel  capacity  has  been  added  in  the  country  during  the  period 2013-14 to 2015-16.

(e) In  order  to  boost  steel  production  and  consumption  in  the  country's  steel industry,  Government  has  taken  a  number  of  steps  including  Notification  of  Mines and  Minerals  (Development  and  Regulation)  Amendment  Act,  increasing  Customs Duty,  imposition  of  Safe-guard  duty  and  Anti-Dumping  Duty  on  a  number  of  steel products.

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