Lok Sabha Question No. 359 (UNSTARRED), answered on 2017-12-18
Subject: Performance of SAIL/RINL
Ministry: STEEL
Asked by: PR. SENTHILNATHAN, K. MARAGATHAM, HARIOM SINGH RATHORE, FAIZAL P.P. MOHAMMED

## LOK SABHA

## UNSTARRED QUESTION NO.359 FOR ANSWER ON 18/12/2017

## PERFORMANCE OF SAIL/RINL

359. SHRI PR. SENTHIL NATHAN: SHRIMATI K. MARAGATHAM: SHRI HARIOM SINGH RATHORE: MOHAMMED FAIZAL:

Will the Minister of STEEL be pleased to state:

(a) whether  the  Steel  Authority  of  India  Limited  (SAIL)  and  the  Rashtriya  Ispat Nigam Limited (RINL) are focusing on opening new market, to maximize sales and provide high standards of customer services;

- (b) if so, the details thereof and the steps taken in this regard;

(c) the  total  production  capacity,  actual  production,  consumption,  import  and export of both iron ore and finished steel of all steel plants in the country during each of the last three years, plant-wise;

(d) whether there is any lack  of  supply  of  iron  ore  or  raw  material  for  the  steel plants in the country; and

(e) if so, the details thereof and the steps taken by the Government to make steel industry more efficient?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a)&(b):  Yes,  Madam.    Both  SAIL  and  RINL  have  been  focusing  on  market expansion,  maximization  of  sales  revenue  and  on  the  customer  satisfaction  front. With  the  expansion  of  SAIL's  and  RINL's  product/grade  mix  from  the  existing  and new Mills, both the companies have forayed into new markets segments in India and overseas  viz.  SAIL  has  forayed  into  Oil  and  Gas,  Drum  &  Barrel  market  and construction  segment  on  the  domestic  front  and  has  also  forayed  into  overseas markets such as  Djibouti for Billets, Taiwan for Hot rolled Coils, Philippines for Wire Rod  Coils  and  Billet,  Thailand  for  Blooms,  Bangladesh  for  Cold  Rolled  Coils  and Japan for Wire Rod Coils and Singapore for TMT bars/coils.   Similarly RINL, through its  large  network  of  Dealers  and  Retailers  including  e-retailers,  is  serving  the requirements of urban, semi-urban and rural customers. In overseas segment, RINL has ventured into new export markets such as USA, Philippines and Sri Lanka.

Both  SAIL  and  RINL  have  undertaken  various  initiatives  towards  customer satisfaction including booking orders as per the requirement of the customers.

(c) Data on the total production capacity, actual production, consumption, import and  export  of  both  iron  ore  and  finished  steel  is  at Annexure-I  and  Annexure-II respectively.

(d)&(e):  No, Madam.   There is sufficient availability of iron ore to meet the domestic consumption  in  the  country.    For  ensuring  adequate  supply  of  iron  ore  to  the domestic steel industries, Government has taken following steps:-

- (i) Notified Mines and Minerals (Development and Regulation) Amendment Act, 2015, which provide auction mechanism for grant of Mining leases.
- (ii) Imposed export duty @30% on Iron Ore Lumps/Fines above 58% Fe content.
- (iii) Notified National Steel Policy 2017 with a view to encourage long term growth of domestic steel sector.

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## Annexure -I

## (Reply  to  point  no.  (c)  of  Lok  Sabha  Unstarred  Q.  No.359  for  answer  on 18.12.2017)

- I. IRON ORE : Data on production, import and export of iron ore is shown in the table below year-wise for the last 5 years and April-Sept., 2017 :

| Production, Import, Export of Iron Ore During Last Five Years (in million tonnes)                                                       | Production, Import, Export of Iron Ore During Last Five Years (in million tonnes)                                                       | Production, Import, Export of Iron Ore During Last Five Years (in million tonnes)                                                       | Production, Import, Export of Iron Ore During Last Five Years (in million tonnes)                                                       | Production, Import, Export of Iron Ore During Last Five Years (in million tonnes)                                                       |
|-----------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
| Item                                                                                                                                    | 2014-15                                                                                                                                 | 2015-16                                                                                                                                 | 2016-17*                                                                                                                                | April-Sept., 2017*                                                                                                                      |
| Production                                                                                                                              | 128.91                                                                                                                                  | 155.59                                                                                                                                  | 192.18                                                                                                                                  | 93.75                                                                                                                                   |
| Consumption                                                                                                                             | 113.48                                                                                                                                  | 122.10                                                                                                                                  | 131.38                                                                                                                                  | 141.37**                                                                                                                                |
| Import                                                                                                                                  | 12.09                                                                                                                                   | 7.09                                                                                                                                    | 4.60                                                                                                                                    | 2.82                                                                                                                                    |
| Export                                                                                                                                  | 7.30                                                                                                                                    | 5.32                                                                                                                                    | 30.49                                                                                                                                   | 11.39                                                                                                                                   |
| Source-Import & Export: DGFT; Production: IBM, Nagpur; *prov. **for 2017-18 (projections for the year) (IBM/Annual Report of M/o Mines) | Source-Import & Export: DGFT; Production: IBM, Nagpur; *prov. **for 2017-18 (projections for the year) (IBM/Annual Report of M/o Mines) | Source-Import & Export: DGFT; Production: IBM, Nagpur; *prov. **for 2017-18 (projections for the year) (IBM/Annual Report of M/o Mines) | Source-Import & Export: DGFT; Production: IBM, Nagpur; *prov. **for 2017-18 (projections for the year) (IBM/Annual Report of M/o Mines) | Source-Import & Export: DGFT; Production: IBM, Nagpur; *prov. **for 2017-18 (projections for the year) (IBM/Annual Report of M/o Mines) |

(Reply  to  point  no.  (c)  of  Lok  Sabha  Unstarred  Q.  No.359  for  answer  on 18.12.2017)

- II. FINISHED STEEL :
2. (a) Production, consumption, import and export of Finished Steel:
3. (b) Plant-wise production:

| Production, Import, Export of Iron Ore During Last Five Years (in million tonnes)   | Production, Import, Export of Iron Ore During Last Five Years (in million tonnes)   | Production, Import, Export of Iron Ore During Last Five Years (in million tonnes)   | Production, Import, Export of Iron Ore During Last Five Years (in million tonnes)   | Production, Import, Export of Iron Ore During Last Five Years (in million tonnes)   |
|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|
| Finished Steel                                                                      | 2014-15                                                                             | 2015-16                                                                             | 2016-17                                                                             | April-Oct., 2017*                                                                   |
| Production for sale                                                                 | 92.16                                                                               | 90.98                                                                               | 101.81                                                                              | 61.26                                                                               |
| Consumption                                                                         | 76.99                                                                               | 81.82                                                                               | 84.04                                                                               | 50.37                                                                               |
| Import                                                                              | 9.32                                                                                | 11.71                                                                               | 7.23                                                                                | 4.92                                                                                |
| Export                                                                              | 5.59                                                                                | 4.08                                                                                | 8.24                                                                                | 5.63                                                                                |
| Source: JPC, Annual Report of M/o Steel 2016-17 *provn.                             | Source: JPC, Annual Report of M/o Steel 2016-17 *provn.                             | Source: JPC, Annual Report of M/o Steel 2016-17 *provn.                             | Source: JPC, Annual Report of M/o Steel 2016-17 *provn.                             | Source: JPC, Annual Report of M/o Steel 2016-17 *provn.                             |

| PRODUCTION FOR SALE OF FINISHED STEEL   | PRODUCTION FOR SALE OF FINISHED STEEL   | PRODUCTION FOR SALE OF FINISHED STEEL   | PRODUCTION FOR SALE OF FINISHED STEEL   | PRODUCTION FOR SALE OF FINISHED STEEL   | PRODUCTION FOR SALE OF FINISHED STEEL   |
|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------|
| P                                       | A N T S                                 | (Non-Alloy 2014-15                      | 2015-16                                 | 2016-17                                 | Apr-Oct', 17 *                          |
| A.                                      | PUBLIC SECTOR                           |                                         |                                         |                                         |                                         |
|                                         | BHILAI STEEL PLANT                      | 3321                                    | 3271                                    | 3134                                    | 1814                                    |
|                                         | DURGAPUR STEEL PLANT                    | 573                                     | 503                                     | 534                                     | 363                                     |
|                                         | ROURKELA STEEL PLANT                    | 2110                                    | 2168                                    | 2461                                    | 1632                                    |
|                                         | BOKARO STEEL PLANT                      | 3207                                    | 2472                                    | 3204                                    | 2054                                    |
|                                         | IISCO STEEL PLANT                       | 120                                     | 436                                     | 856                                     | 584                                     |
|                                         | ALLOY STEEL PLANT                       | 11                                      | 16                                      | 11                                      | 5                                       |
|                                         | SALEM STEEL PLANT                       | 359                                     | 390                                     | 412                                     | 106                                     |
|                                         | VISVESVARAYA I & S PLANT                | 26                                      | 46                                      | 29                                      | 14                                      |
|                                         | SAIL- CONVERSION AGENT                  | 553                                     | 909                                     | 1006                                    | 435                                     |
|                                         | RASHTRIYA ISPAT NIGAM LTD.              | 2552                                    | 2766                                    | 3219                                    | 2097                                    |
| SUB TOTAL (A) :                         | SUB TOTAL (A) :                         | 12832                                   | 12977                                   | 14866                                   | 9104                                    |
| B.                                      | PRIVATE SECTOR                          |                                         |                                         |                                         |                                         |
|                                         | TATA STEEL LTD                          | 8967                                    | 9527                                    | 11115                                   | 7058                                    |
|                                         | ESSAR STEEL                             | 5422                                    | 6314                                    | 7916                                    | 5553                                    |
|                                         | JSW STEEL                               | 16809                                   | 17197                                   | 21161                                   | 12261                                   |
|                                         | JINDAL STEEL & POWER LTD                | 2790                                    | 2512                                    | 2640                                    | 1547                                    |
|                                         | OTHERS                                  | 53862                                   | 54376                                   | 58213                                   | 31642                                   |
| Less Own Consumption                    | Less Own Consumption                    | 8525                                    | 11923                                   | 14105                                   | 5903                                    |
| SUB TOTAL (B) :                         | SUB TOTAL (B) :                         | 79325                                   | 78003                                   | 86940                                   | 52158                                   |
| TOTAL PRODUCTION FOR SALE(A+B)          | TOTAL PRODUCTION FOR SALE(A+B)          | 92157                                   | 90980                                   | 101806                                  | 61262                                   |

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