Lok Sabha Question No. 2941 (UNSTARRED), answered on 2017-03-20
Subject: Promotion of R&D in Steel Sector
Ministry: STEEL
Asked by: MANOJ RAJORIA, J. JAYASINGH THIYAGARAJ NATTERJEE

## LOK SABHA

## UNSTARRED QUESTION NO.2941 FOR ANSWER ON 20/03/2017

## PROMOTION OF R&D IN STEEL SECTOR

2941.  DR. MANOJ RAJORIA:

SHRI J.J.T. NATTERJEE:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government is planning to set up Steel Research & Technology Mission of India (SRTMI) to facilitate joint collaborative research projects in iron and steel  sector  in  the  country  and  if  so,  the  details  thereof  including  the  funds allocated/utilised for promotion of R&D projects during the last three years and the current year;
- (b) whether the safeguard duty is proposed to be reduced to 10% from the current 20% and if so, the details thereof and the reasons therefor;
- (c) whether  this  move  is  to  protect  domestic  industry  from  onslaught  of  cheap steel supplies (imports) from China amid a global glut and if so, the details thereof; and
- (d) the  other  steps  taken  by  the  Government  to  promote  R&D  projects  in  steel sector?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a)&(d): Ministry  of  Steel  is  facilitating  an  Industry  driven  institutional  mechanism namely  Steel  Research  &  Technology  Mission  of  India  (SRTMI),  to  facilitate  joint collaborative research projects in the iron & steel sector in India. The salient features of SRTMI are as under:

-  SRTMI is an industry driven initiative which has been setup as a Registered Society wherein Ministry of Steel is a facilitator.
-  SRTMI  is  governed  and  administered  by  a  Governing  Body  comprising  the steel CEOs, Domain Experts and a representative of Ministry of Steel.
-  The executive functioning of SRTMI will be carried out by the Director, SRTMI, who  will  be  assisted  by  a  suitable/appropriate  supporting  structure.  The selection of the Director is in progress.

Ministry of Steel is supplementing R&D efforts/ investment of the steel industry by providing financial assistance for specific R&D projects from Steel Development Fund and Government of India Fund. Besides specific R&D projects, Ministry of Steel is  also  facilitating  several  capacity  building  initiatives  like  Ministry  of  Steel  Chair Professor, Ministry of Steel Scholarships, Centre of Excellences etc. to promote R&D in Indian steel sector.

Ministry  of  Steel  is  also  actively  participating  in  the  Impacting  Research Innovation & Technology (IMPRINT) & Uchchatar Avishkar Yojana (UAY) Schemes launched by MHRD. Under the IMRPINT Scheme 3 R&D projects with total cost of Rs. 11.05 crore have been approved with 50% funding from Ministry of Steel. Under the UAY scheme, 3 R&D projects have been approved with total cost of Rs. 10.09 crore with 25% funding from Ministry of Steel, in the year 2016-17.

The allocated budget of Ministry of Steel for the purpose for the current year and the last 3 years from SDF and Government Fund is given below:

(in Rs. crore)

| Sl.No   | Year                      | Government Fund   | Government Fund   | Steel Development Fund   | Steel Development Fund   |
|---------|---------------------------|-------------------|-------------------|--------------------------|--------------------------|
|         |                           | Allocation (RE)   | Utilisation       | Allocation               | Utilisation              |
| 1       | 2013-14                   | 8.00              | 8.00              | 20.00                    | 17.41                    |
| 2       | 2014-15                   | 7.00              | 2.03              | 20.00                    | 17.00                    |
| 3       | 2015-16                   | 15.00             | 10.26             | 20.00                    | 18.21                    |
| 4       | 2016-17 (till Feb., 2017) | 15.00             | 14.47             | 20.00                    | 17.04                    |

(b)&(c): As per the notification dated March, 2016 related to the import of Hot-rolled flat products of non-alloy and other alloy Steel in coils of a width of 600 mm or more falling  under  heading  7208  or  tariff  item  7225  30  90  of  the  First  Schedule  to  the Customs Tariff Act, 1975, the safeguard duty has been gradually reduced from the initial 20% (notified in September, 2015) to 15% (w.e.f. 14 th March, 2017). The same will further reduce to 10% for a period of 6 months w.e.f. 14 th September, 2017 to 13 th March, 2018. This measure was taken to check the onslaught of cheap imports of steel  products  amid  a  global  glut  and  to  protect  the  domestic  industry  against  the serious injury caused to 'like or directly competitive products'.

********