Lok Sabha Question No. 464 (UNSTARRED), answered on 2017-02-06
Subject: Steel Consumption
Ministry: STEEL
Asked by: ASADUDDIN OWAISI, HEMANT TUKARAM GODSE

## LOK SABHA UNSTARRED QUESTION NO.464 FOR ANSWER ON 06/02/2017

## STEEL CONSUMPTION

464. SHRI ASADUDDIN OWAISI: SHRI GODSE HEMANT TUKARAM:

Will the Minister of STEEL be pleased to state:

(a) whether  the  per  capita  steel  consumption  in  the  country  is  060  kg.  as compared  to  global  average  of  225  kg.  if  so,  the  details  thereof  and  the  reasons therefor;

(b) whether steel consumption in rural areas of the country has increased during the  last  three  years,  if  so,  the  details  thereof  and  the  reaction  of  the  Government thereto;

- (c) the extent to which imposing Minimum Import Price (MIP) has been helpful to recover the steel sector in the country; and
- (d) the  other  steps  taken by  the  Government to  promote the steel sector in the country?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a) The per Capita steel consumption of total finished steel stood at 63 kg. in the country  (source:  JPC)  while  for  2016,  the  world  average  was  at  208  kg.  (Source: World Steel Association, which reports data on a calendar year basis).  The level of consumption of steel in a country depends on a number of factors, including stage of development, speed of economic growth etc.

(b) The consumption of total finished steel in rural India during last three years is given  below  based  on  a  Study  conducted  by  the  Joint  Plant  Committee  (JPC). Government encourages increasing steel consumption in the country, including rural areas.

| Year                                                  | Consumption of total finished steel in rural India    | Consumption of total finished steel in rural India    |
|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
| Year                                                  | Qty. (mt.)                                            | %change over last year                                |
| 2013-14                                               | 9.26                                                  | 2.4                                                   |
| 2014-15                                               | 9.49                                                  | 2.5                                                   |
| 2015-16                                               | 9.74                                                  | 2.6                                                   |
| Source: Joint Plant Committee JPC; mt.=million tonnes | Source: Joint Plant Committee JPC; mt.=million tonnes | Source: Joint Plant Committee JPC; mt.=million tonnes |

(c) To lend support to the domestic steel industry and provide a level playing field, The Government has imposed Minimum Import Price.  As a result:-

1. Total steel import have dropped by 37% to 6.02 million tonnes during April December, 2016 as compared to the corresponding period last year.
2. Exports have increased by 64% to 5.8 million tonnes during April - December 2016 as compared to the corresponding period last year.

3. Post  notification  of  MIP  in  February,  2016,  prices  increased  till  May,  2016 which  subsequently  declined  again  in  June,  2016  before  stabilizing  with  a modest rebound in August, 2016. Thereafter, prices maintained an increasing trend  till  January,  2017,  with  the  current  prices  (of  Hot  Rolled/Cold  Rolled Coils) about 40% higher than the pre-MIP prices (January, 2016).

(d) In  order  to  promote  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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