Lok Sabha Question No. 2053 (UNSTARRED), answered on 2016-11-28
Subject: New National Steel Policy
Ministry: STEEL
Asked by: GEETHA KOTHAPALLI, BHEEMRAO BASWANTHRAO PATIL, RAM CHARITRA, RANGASWAMY DHRUVANARAYANA

## NEW NATIONAL STEEL POLICY

2053.  SHRIMATI KOTHAPALLI GEETHA: SHRI BHEEMRAO B. PATIL: SHRI RAM CHARITRA NISHAD: SHRI R. DHRUVA NARAYANA:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government proposes to revisit the existing National Steel Policy, if so, the details and the salient features thereof;

(b) whether the Government proposes to enhance the steel production capacity to 300 million tonnes by the year 2025, if so, the details thereof along with the steps proposed to be taken in this regard;

- (c) whether the global glut and surge in the import prices of steel has adversely affected the domestic steel industry, if so, the details thereof; and
- (d) the  corrective  steps  taken  by  the  Government  to  provide  adequate  financial support for revamping the domestic steel industry?

## ANSWER

THE MINISTER OF STATE FOR STEEL

## (SHRI VISHNU DEO SAI)

- (a) Yes, Madam.  The Government proposes to revisit the existing National Steel Policy. It is at conceptual stage.

(b) Yes,  Madam.    Based  on  the  decision  taken  in  the  meeting  of  High  Level Committee on Manufacturing held on 09.07.2013 to achieve the ambitious target of 300 Million Tonne Per Annum (MTPA) steel production capacity by 2025, a concept of Special Purpose Vehicle (SPV) was enunciated. Four mineral rich states, namely, Chhattishgarh,  Odisha,  Karnataka  and  Jharkhand  were  identified  for  setting  up  of Integrated  Steel  Plants  through  SPV  route,  Memorandum  of  Understanding  (MoU) has been signed with the State Governments of Jharkhand and Chhattisgarh.

(c) Yes, Madam.  It has resulted in erosion of profits of domestic steel companies and has resulted in Non- Performing Assets (NPAs) of domestic steel companies.

(d) The Government has taken the following steps to provide support to the domestic steel industry:

- i. To  ensure  that  only  quality  steel  is  produced  and  imported,  Government  has notified Steel and Steel Products (Quality Control) Orders dated 12.03.12 and 04.12.15.
- ii. Govt. has notified MMDR, Amendment Act, 2015 to streamline grant of Mining Leases  in  order  to  maintain  sufficient  availability  of  raw  materials  for  various sectors including steel sector.
- iii. To  provide  level  playing  field  to  the  domestic  steel  producers,  Govt.  has imposed Minimum Import Price (MIP) on 66 steel products.
- iv. Government has imposed in June.2015, an Anti- Dumping Duty on imports of certain variety of hot-rolled flat products of stainless steel from China ($309 per tonne), Korea ($180 per tonne)  and  Malaysia ($ 316 per tonne).
- v. Hiked  import  duty  on  ingots  &  billets,  alloy  steel  (flat  &  long),  stainless  steel (long) and non-alloy long products from  5% to 7.5% and non-alloy and other alloy flat products from 7.5% to 10%. This was further revised in August, 2015 on flat steel from 10% to 12.5%, long steel from 7.5% to 10% and semi-finished steel from 7.5% to 10%.
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