Lok Sabha Question No. 5025 (UNSTARRED), answered on 2018-03-26
Subject: Cheap Steel Imports
Ministry: STEEL
Asked by: RAHUL RAMESH SHEWALE, KRUPAL BALAJI TUMANE, ARVIND GANPAT SAWANT, SANJAY SHAMRAO DHOTRE, BHAVANA GAWALI (PATIL), BHARTRUHARI MAHTAB

## CHEAP STEEL IMPORTS

## 5025.  SHRI RAHUL SHEWALE:

SHRI KRUPAL BALAJI TUMANE:

SHRI ARVIND SAWANT:

SHRI SANJAY DHOTRE:

SHRIMATI BHAVANA PUNDALIKRAO GAWALI PATIL:

SHRI BHARTRUHARI MAHTAB:

Will the Minister of STEEL be pleased to state:

(a) whether the  steel  industry  has  been  facing  difficulties  due  to  rising  cheaper steel  imports  and  decline  in  domestic  and  global  steel  demand,  if  so,  the  details thereof along with the reaction of the Government thereto;

(b) the quantum of indigenous steel produced and imported in the country during each of the last three years and the current year;

(c) whether  the  Government  has  received  any  representation  from  various domestic steel manufacturers against surge in steel imports during the said period, if so, the details thereof along with the remedial action taken/proposed to be taken by the Government thereon;

(d) whether the leading steel  companies including  public  sector undertakings  of the  country  are  incurring  heavy  losses,  if  so,  the  details  thereof  and  the  reasons therefor;

(e) whether  the  Government  proposes  to  provide  a  special  package  to  steel industry to enable it to come out of crisis, if so, the details thereof; and

(f) the other steps taken/proposed to be taken by the Government to protect and promote the domestic steel industry against the cheap steel imports?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a)to(c): Indian Steel companies were facing a lot of challenges due to  dumping of steel from steel majors in the past. There was 75.5% increase in imports of total steel (Alloy  +  Non  Alloy)  in  2014-15.  The  domestic  steel  prices  had  a  sharp  downward trend during 2014-15, which continued into 2015-16. Domestic steel manufacturers filed  application  for  appropriate  trade  remedial  measures  with  the  designated authority.    The  Government  accordingly  notified  measures  such  as  Anti  Dumping Duty (ADD), Countervailing Duty (CVD) and Safeguard Duty (SD) to contain unfair trade.  These  remedial  actions  taken  by  Government  contained  unfair  trade.  The quantum  of  indigenous  steel  produced  and  imported  during  last  three  years  and current year is as follows:-

(Quantity in Million Tonnes)

| Financial Year   |   Steel Production for Sale (MT) |   Imports (MT) |
|------------------|----------------------------------|----------------|
| 2014-15          |                            92.15 |           9.3  |
| 2015-16          |                            90.9  |          11.7  |
| 2016-17          |                           100.7  |           7.2  |
| 2017-18 Apr-Jan  |                            88.37 |           6.45 |

Source: JPC

(d) The  annual  financial  performance  of  some  of  the  major  steel  companies including public sector manufacturers is as under:-

|                    | Profit After Taxes (Rupees Crore)   | Profit After Taxes (Rupees Crore)   | Profit After Taxes (Rupees Crore)   | Profit After Taxes (Rupees Crore)   |
|--------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
| Name of Company    | 2013-14                             | 2014-15                             | 2015-16                             | 2016-17                             |
| SAIL               | 2616.48                             | 2092.68                             | -4137.26                            | -2833.24                            |
| RINL               | 366.45                              | 62.38                               | -1420.64                            | -1235.62                            |
| Tata Steel Ltd.    | 6412.19                             | 6439.12                             | 955.65                              | 3444.55                             |
| JSW Steel Ltd.     | 1334.51                             | 2166.48                             | -3498.28                            | 3576.54                             |
| JSPL               | 1291.95                             | -310.68                             | -1018.88                            | -986.45                             |
| Bhushan Steel Ltd. | 61.96                               | -1253.83                            | -2839.37                            | -3501.12                            |
| Source: ERU        | Source: ERU                         | Source: ERU                         | Source: ERU                         | Source: ERU                         |

Leading  steel  companies  generally  suffered  losses  during  the  year  2015-16 inter-alia  due  to  unfair  trade  and  decreasing  prices.    The  financial  performance improved after the government took remedial measures. The financial performance of major steel companies during first three quarters of 2017-18 is as under:-

| Name of the Company   | Profit After Taxes (Rupees Crore)   | Profit After Taxes (Rupees Crore)   | Profit After Taxes (Rupees Crore)   |
|-----------------------|-------------------------------------|-------------------------------------|-------------------------------------|
|                       | June, 2017                          | September, 2017                     | December, 2017                      |
| SAIL                  | -801.38                             | -538.32                             | 47.48                               |
| RINL                  | -430.59                             | -295.58                             | -                                   |
| Tata Steel Ltd.       | 377.30                              | 1213.14                             | 1474.20                             |
| JSW Steel Ltd.        | 282.00                              | 883.00                              | 1410.00                             |
| JSPL                  | -177.06                             | -254.56                             | -73.07                              |
| Bhushan Steel Ltd.    | -750.07                             | -467.43                             | -1606.63                            |
| Source: ERU           | Source: ERU                         | Source: ERU                         | Source: ERU                         |

(e)&(f):  The  Government  is  not  planning  to  give  any  special  package  to  the  steel industry. Steel is a deregulated sector. The Government does not interfere with the free and fair trade of the steel products. On the basis of application filed by domestic steel manufacturers, Government initiates and notifies trade remedial measures like Anti  Dumping  Duty  (ADD),  Countervailing  Duty  (CVD)  and  Safeguard  Duty  (SD) following due process.

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