Lok Sabha Question No. 1445 (UNSTARRED), answered on 2018-03-05
Subject: Steel Consumption
Ministry: STEEL
Asked by: BHEEMRAO BASWANTHRAO PATIL

## STEEL CONSUMPTION

## 1445.  SHRI BHEEMRAO B. PATIL:

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  thereof  indicating  the  total  demand,  production,  consumption  and import of steel along with the percentage of increase registered in this respect during each of the last three years and the current year;

(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:-

| Total Finished Steel      | Total Finished Steel      | Total Finished Steel      | Total Finished Steel      | Total Finished Steel      | Total Finished Steel      | Total Finished Steel      |
|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|
| Year                      | Production for sale       | Production for sale       | Consumption               | Consumption               | Import                    | Import                    |
| Year                      | Qty (mt)                  | %change                   | Qty (mt)                  | %change                   | Qty (mt)                  | %change                   |
| 2014-15                   | 92.16                     | 5.1                       | 76.99                     | 3.9                       | 9.32                      | 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                     |
| April-Jan., 2017-18*      | 88.37                     | 5.1                       | 72.52                     | 5.4                       | 6.45                      | 5.7                       |
| Source: JPC; *provisional | Source: JPC; *provisional | Source: JPC; *provisional | Source: JPC; *provisional | Source: JPC; *provisional | Source: JPC; *provisional | Source: JPC; *provisional |

(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 realization.

(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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(SHRI VISHNU DEO SAI)