Lok Sabha Question No. 4360 (UNSTARRED), answered on 2016-12-12
Subject: Steel Production and Consumption
Ministry: STEEL
Asked by: DEVUSINH JESINGBHAI CHAUHAN, BANSHILAL MAHTO, SUSHIL KUMAR SINGH

## LOK SABHA UNSTARRED QUESTION NO.4360 FOR ANSWER ON 12/12/2016

## STEEL PRODUCTION AND CONSUMPTION

4360.  SHRI DEVUSINH CHAUHAN: DR. BANSHILAL MAHATO: SHRI SUSHIL KUMAR SINGH:

Will the Minister of STEEL be pleased to state:

- (a) whether the consumption of steel has increased in the country during each of the last three years;
- (b) if so, the details of total demand, production, consumption and import/export of steel  during  each  of  the  last  three  years  along  with  the  increase  in  terms  of percentage registered in this regard;
- (c) whether the steel industry especially small and medium plants are facing the insufficient supply of raw materials especially iron ores and if so, the details thereof;
- (d) whether  the  Government  proposes  to  increase  duty  on  import  of  steel  and export of iron ore and if so, the details thereof and if not, the reasons therefor; and
- (e) the steps taken/being taken by the Government to prevent the illegal export of iron ore and to ensure sufficient supply of raw materials including iron ore to domestic steel products?

## ANSWER

THE MINISTER OF STATE FOR STEEL

- (a) Yes, Madam.

(b) The  details of production, consumption (demand) and imports of finished steel during each of the last three years and the corresponding change over same period last year, 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   | Total finished steel exports outside India   | Total finished steel exports outside India   |
|---------|--------------------------------------------------------|--------------------------------------------------------|---------------------------------------------|---------------------------------------------|-----------------------------------------|-----------------------------------------|----------------------------------------------|----------------------------------------------|
|         | Production for sale (mt.)                              | Change over last year (%)                              | Real Consumption (mt.)                      | Change Over last year%                      | Import (mt.)                            | Change over last Year%                  | Export (mt.)                                 | Change over last Year%                       |
| 2013-14 | 87.67                                                  | 7.3                                                    | 74.09                                       | 0.8                                         | 5.45                                    | -31.3                                   | 5.98                                         | 11.36                                        |
| 2014-15 | 92.16                                                  | 5.1                                                    | 76.99                                       | 3.9                                         | 9.32                                    | 71.0                                    | 5.59                                         | -6.5                                         |
| 2015-16 | 90.98                                                  | -1.3                                                   | 81.52                                       | 5.9                                         | 11.71                                   | 25.6                                    | 4.08                                         | -27                                          |

Source : Joint Plant Committee (JPC)

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

(SHRI VISHNU DEO SAI)

(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 MIP, Anti-Dumping Duty and Safeguard Duty which have led to a considerable reduction in imports and improvement in price realisation.

Currently,  there  is  30%  export  duty  on  iron  ore  lumps  &  fines  (Fe  content >58%)  imposed  by  government  in  2011  which  may  be  reviewed  if  the  growth prospects of Steel Industry so demand.

(e) Government,  in  order  to  prevent  illegal  export  of  iron  ore,  banned  iron  ore mining in Karnataka and Goa via Hon'ble Supreme Court's ruling in 2011 and 2012 respectively, the impact of which led to the lower exports from the country. To ensure that  adequate  Iron  ore  is  available  in  India  for  value  addition  in  downstream industries, Government has also:-

-  Maintained the export duty on iron ore of Fe content above 58% to 30%.
-  Capped the iron ore production in various states.
-  Railway freight on iron ore for domestic consumption has been reduced with reduction  of  Distance  Based  Charge  (DBC),  and  development  of  slurry pipelines  and  coastal  shipping  is  being  looked    into    to  reduce  the  cost  of transportation of Iron ore from production centers to consumption points.

To  ensure  sufficient  supply  of  raw  materials  including  iron  ore  to  domestic steelmakers, the government has taken following steps in recent times:-

-  Enacted MMDR Amendment Act, 2015 for increased availability of iron ore in the country.
-  Enacted Coal Mines (Special Provisions) Act, 2015 for increased availability of coal.
-  Notified National  Mineral  Exploration  Policy to  facilitate  comprehensive exploration.
-  Increased the emphasis on beneficiation and agglomeration of iron ore.

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