Lok Sabha Question No. 202 (STARRED), answered on 2017-07-31
Subject: Steel Production
Ministry: STEEL
Asked by: K. ASHOK KUMAR, KIRIT PREMJIBHAI SOLANKI

THE MINISTER OF STEEL

## LOK SABHA

## STARRED QUESTION NO.*202 FOR ANSWER ON 31/07/2017

## STEEL PRODUCTION

- *202.  SHRI K. ASHOK KUMAR: DR. KIRIT P. SOLANKI:

Will the Minister of STEEL be pleased to state:

- (a) whether  production  of  the  crude  steel  grew  during  the  first  quarter  of  the current year and if so, the details thereof;
- (b) whether  the  Government's  ambition  to  add  182  million  tonnes  of  steel production capacity under the National Steel Policy during the next 14 years is likely to be achieved, if so, the details thereof and if not, the reasons therefor;
- (c) whether  only  60  million  tonnes  of  the  steel  production  capacity  has  been added during the last decade and stagnant steel demand had aggravated the debt position of the sector and if so, the details thereof;
- (d) whether  several  global  steel  players  have  scrapped  their  various  greenfield steel projects on issues concerning acquisition of land and raw material linkage for the purpose and if so, the details thereof along with the remedial steps taken by the Government in this regard; and
- (e) the other steps taken by the Government to augment steel production in the country?

## ANSWER

(SHRI CHAUDHARY BIRENDER SINGH)

(a)to(e):  A Statement is laid on the Table of the Lok Sabha.

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STATEMENT REFERRED TO  IN  REPLY  TO  PARTS  (A)  TO  (E)  OF  THE  LOK SABHA STARRED QUESTION NO. *202 FOR ANSWER ON 31/07/2017 TABLED BY  SHRI  K.  ASHOK  KUMAR  AND  DR.  KIRIT  P.  SOLANKI,  MEMBERS  OF PARLIAMENT REGARDING 'STEEL PRODUCTION'

(a) Yes, Madam.  Data on crude steel production in India during April-June 201718 show a growth of 3.5% over the same period of last year as shown below:-

| Year                                         | Crude steel production (mt)                  |
|----------------------------------------------|----------------------------------------------|
| April-June 2016-17*                          | 23.72                                        |
| April-June 2017-18*                          | 24.56                                        |
| %Change                                      | 3.5                                          |
| Source: JPC; *Provisional; mt=million tonnes | Source: JPC; *Provisional; mt=million tonnes |

(b) India has crude steel capacity of 126 million tonnes as on March 2017.  The National Steel Policy (NSP) 2017, envisages to enhance the domestic crude steel capacity to 300 million tonnes by 2030-31. This is shown below which indicates an addition of 174 mt of Capacity as compared to 2016-17 (prov.) in the next 14 years.

| Year                                                   | Crude steel capacity (mt)                              |
|--------------------------------------------------------|--------------------------------------------------------|
| 2016-17*                                               | 126.33                                                 |
| 2030-31^                                               | 300                                                    |
| Increase                                               | 173.67                                                 |
| Source: JPC; *Provisional, ^ Projected as per NSP 2017 | Source: JPC; *Provisional, ^ Projected as per NSP 2017 |

(c) Crude  steel  capacity  added  during  2007-08  to  2016-17  is  66.49  million tonnes.    During  this  period,  the  domestic  finished  steel  consumption  grew  by  6% CAGR (Compounded Annual Growth Rate) and hence the reason for the financial health of the steel sector cannot be attributed to stagnant steel demand.  However, the financials of steel companies were adversely affected due to significant price fall of  steel  commodities  and  increase  in  imports  of  total  finished  steel  (71%)  during 2014-15.

(d)&(e):  Decision  to  set  up  steel  project  is  taken  by  individual  investor  based  on various factors like location of land, availability of raw materials, economic viability of project,  logistics,  etc.    In  order  to  ensure  availability  of  raw  materials,  Government has come up with Mines and Minerals (Development and Regulation) Amendment Act, 2015 and Coal Mines (Special Provisions) Act, 2015.  This statutory framework provide transparent method of allocation of natural resources like iron ore and coal. Further, Government has notified the National Steel Policy 2017 on 8.5.2017, which lays down the broad roadmap for encouraging long term growth for the Indian steel industry.  The Government has also notified a Policy on preference to 'Domestically Manufactured Iron & Steel Products' (DMI&SP) in Government procurement, which is likely to increase domestic demand,  production and value addition in steel sector.

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