Lok Sabha Question No. 4368 (UNSTARRED), answered on 2021-03-22
Subject: Impact of COVID-19 on Steel Sector in Kerala
Ministry: STEEL
Asked by: Shashi Tharoor

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO.4368 FOR ANSWER ON 22/03/2021

## IMPACT OF COVID-19 ON STEEL SECTOR IN KERALA

## 4368.  DR. SHASHI THAROOR:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government is aware that the impact of COVID- 19 on 25 steel mills  in  the  State  of  Kerala  has  been  stronger  owing  to  the  fact  that  construction projects in the State are mainly carried out during the January - May period before the rainy season;
- (b) if so, the steps taken by the Government in this regard;
- (c) if not, the reasons therefor; and
- (d) the  measures,  if  any,  taken  to  reduce  impacts  of  the  pandemic,  both  shortterm and long-term, on the Indian steel industry?

## ANSWER

(SHRI DHARMENDRA PRADHAN)

- (a) The  details  of  crude  steel  capacity,  production  and  capacity  utilisation  in respect of various states including Kerala during April, 2020 -January, 2021 and April, 2019 -January, 2020 are enclosed as Annexure .
- (b)to(d):  The  measures  taken  by  the  Government  to  boost  the  domestic  steel production, availability and consumption, in the light of COVID-19 pandemic, are as following:-
- (i) Ministry of Steel has held several rounds of consultations during the lockdown period  with  various  stakeholders  including  industry  associations  and  leaders  of domestic  steel  industry  to  address  their  issues  including  those  arising  due  to lockdown by taking up the same with the concerned Ministries/Departments of the Central  Government  and  State  Governments.  Guidelines  issued  by  the  Ministry  of Home  Affairs  from  time to time have  facilitated speedy  resumption  of  steel production.  The  Ministry  of  Steel  has  also  organized  the  following  Webinars  with relevant stakeholders to enhance the overall demand for steel in the country:
- (a) Oil and Gas Sector, 16 th June, 2020.
- (b) Ispati Irada, Enhancing Steel Usage, 30 th June, 2020.
- (c) Housing and Civil Aviation Sector, 18 th August, 2020.
- (d) Agriculture, Rural Development, Dairying and Food Processing Sectors, 20 th October, 2020.

(ii) Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, has been suitably amended vide notification dated 31 st December, 2020, in order to align it with the  revised  Public  Procurement  (Preference  to  Make  in  India)  Order  2017.  The minimum value addition has been enhanced from 15% to 20% and the policy is now applicable  to  all  procurement  above  Rupees  5  lakhs  and  includes  EPC  contracts among other changes.

(iii) Inclusion  of  'specialty  steel'  under  the  Production  Linked  Incentive  (PLI) Scheme recently  announced  by  the  Government  to  help  attract  capital  investment and production of specialty steel in the country

(iv) The  Government,  vide  Notification  dated  01 st October,  2020,  has  allowed domestic steel producers to provide steel under four product categories (Hot Rolled Coil, Cold Rolled Coil, Wire Rods and Alloy Steel Bars) to MSME members of EEPC at an export parity price.

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Annexure Crude Steel: No. of Units, Capacity, Production and Capacity Utilisation

| State                  | No. of Units   | April 2019- January 2020   | April 2019- January 2020   | April 2019- January 2020   | April 2020- January 2021*   | April 2020- January 2021*   | April 2020- January 2021*   |
|------------------------|----------------|----------------------------|----------------------------|----------------------------|-----------------------------|-----------------------------|-----------------------------|
| State                  | No. of Units   | Capacity ('000 tonnes)     | Production ('000 tonnes)   | Capacity Utilisation** (%) | Capacity ('000 tonnes)      | Production ('000 tonnes)    | Capacity Utilisation** (%)  |
| Andhra Pradesh         | 27             | 8391                       | 5356                       | 77                         | 8391                        | 4513                        | 65                          |
| Arunachal Pradesh      | 3              | 125                        | 28                         | 27                         | 125                         | 0                           | 0                           |
| Assam                  | 6              | 131                        | 63                         | 58                         | 131                         | 45                          | 41                          |
| Bihar                  | 15             | 803                        | 470                        | 70                         | 803                         | 370                         | 55                          |
| Chhattisgarh           | 79             | 18785                      | 11285                      | 72                         | 18785                       | 10624                       | 68                          |
| Dadra and Nagar Haveli | 19             | 296                        | 246                        | 100                        | 296                         | 115                         | 47                          |
| Daman and Diu          | 3              | 46                         | 38                         | 99                         | 46                          | 31                          | 80                          |
| Delhi                  | 2              | 16                         | 11                         | 79                         | 16                          | 8                           | 58                          |
| Goa                    | 12             | 481                        | 361                        | 90                         | 481                         | 328                         | 82                          |
| Gujarat                | 59             | 12754                      | 7343                       | 69                         | 12754                       | 6863                        | 65                          |
| Haryana                | 10             | 953                        | 588                        | 74                         | 953                         | 570                         | 72                          |
| Himachal Pradesh       | 25             | 1139                       | 759                        | 80                         | 1139                        | 593                         | 62                          |
| Jammu and Kashmir      | 8              | 189                        | 97                         | 61                         | 189                         | 95                          | 60                          |
| Jharkhand              | 45             | 19707                      | 14287                      | 87                         | 19707                       | 12676                       | 77                          |
| Karnataka              | 29             | 15149                      | 10689                      | 85                         | 15149                       | 9548                        | 76                          |
| Kerala                 | 29             | 480                        | 264                        | 66                         | 480                         | 195                         | 49                          |
| Madhya Pradesh         | 9              | 553                        | 367                        | 80                         | 553                         | 293                         | 64                          |
| Maharashtra            | 55             | 11961                      | 6877                       | 69                         | 11961                       | 6333                        | 64                          |
| Meghalaya              | 5              | 181                        | 87                         | 58                         | 181                         | 25                          | 17                          |
| Odisha                 | 53             | 25370                      | 16814                      | 80                         | 25370                       | 17398                       | 82                          |
| Puducherry             | 10             | 340                        | 179                        | 63                         | 340                         | 145                         | 51                          |
| Punjab                 | 119            | 4924                       | 2850                       | 69                         | 4924                        | 2301                        | 56                          |
| Rajasthan              | 36             | 1176                       | 653                        | 67                         | 1176                        | 471                         | 48                          |
| Tamil Nadu             | 99             | 3766                       | 2165                       | 69                         | 3766                        | 1675                        | 53                          |
| Telangana              | 26             | 1443                       | 979                        | 81                         | 1443                        | 960                         | 80                          |
| Tripura                | 1              | 30                         | 11                         | 44                         | 30                          | 6                           | 24                          |
| Uttar Pradesh          | 46             | 1617                       | 1038                       | 77                         | 1617                        | 795                         | 59                          |
| Uttarakhand            | 42             | 1559                       | 938                        | 72                         | 1559                        | 756                         | 58                          |
| West Bengal            | 42             | 9935                       | 6762                       | 82                         | 9935                        | 5577                        | 67                          |
| Total                  | 914            | 142299                     | 91604                      | 77                         | 142299                      | 83307                       | 70                          |

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