Lok Sabha Question No. 1270 (UNSTARRED), answered on 2019-02-11
Subject: Crude Steel Production
Ministry: STEEL
Asked by: SANJAY SHAMRAO DHOTRE, RAHUL RAMESH SHEWALE, BHARTRUHARI MAHTAB

## LOK SABHA UNSTARRED QUESTION NO.1270 FOR ANSWER ON 11/02/2019

## CRUDE STEEL PRODUCTION

1270.  SHRI SANJAY DHOTRE: SHRI RAHUL SHEWALE: SHRI BHARTRUHARI MAHTAB:

Will the Minister of STEEL be pleased to state:

(a) whether  there  is  a  gap  between  production  capacity  of  crude  steel  and  its actual production by the Public and Private Sector Companies in the country during each of the last three years and the current year, if so, the details thereof, Companywise;

(b) the number of Special Purpose Vehicles (SPVs) formed by the Government to bridge the said gap along with their achievements, SPV-wise;

(c) the details of the investments made by the Public/Private Sector Companies for their expansion and modernisation to participate in the Make-in-India Programme of the Government since inception of the Programme in the country; and

(d) whether the Government proposes to relax the norms for setting up of steel plants in order to increase Steel Companies' participation in the said Programme, if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a) Yes, Madam. There is a gap between production capacity of crude steel and its  actual  production  by  the  Public  and  the  Private  Sector  Steel  Companies.  The details of four years from 2015-16 to 2017-18 and FY 2018-19 (upto Dec., 2019) are given at Annexure-I .

- (b) 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, Chhattisgarh,  Odisha,  Karnataka  and  Jharkhand  were  identified  for  setting  up  of Integrated Steel Plant through the SPV route. So far, Memorandum of Understanding (MoU) has been signed with the State Governments of Jharkhand and Chhattisgarh. The Greenfield integrated steel projects in Jharkhand and Chhattisgarh will be of the capacity of 3+3 or 4+2 MTPA capacity range, each.
- (c) Steel  being  a  deregulated  sector,  investment,  including  under  Make-in-India programme  both  for  the  fresh  or  the  expansion  and  modernization,  is  made  by prospective  investors  based  on  various  factors  including  commercial  consideration and market dynamics. Among the Public Sector, SAIL has undertaken expansion & modernization  of  its  six  steel  plants  at  a  total  cost  of  Rs.  72,134  crore.  RINL  had undertaken  expansion  &  modernization  of  Vizag  Steel  Plant  at  a  total  cost  of  Rs. 12,291  crore.  The  expansion  &  modernization  of  Vizag  Steel  Plant  of  RINL  is completed. Further, RINL has also taken up modernization and expansion of Vizag Steel  Plant  at  a  cost  of  Rs.  3600  crores  to  increase  the  capacity  from  6.3  to  7.3 MPTA. NMDC is setting up a Greenfield 3.0 MTPA integrated steel plant at Nagarnar.

(d) Steel is deregulated industry and no license is required to make investment to set up a new steel plant, except for the statutory requirements related to land acquisition, environmental  and  forest  clearance,  water  use,  etc.  The  decisions  in  regards  to investment in the steel capacities are based on various factors including commercial consideration and market dynamics.

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## Annexure-I referred to in Part (a) of Lok Sabha Unstarred Question No. 1270 for answer on 11.02.2019 PRODUCTION OF CRUDE/LIQUID STEEL

| PRODUCER         | 2015-16          | 2015-16        | 2015-16        | 2016-17          | 2016-17        | 2016-17        | 2017-18          | 2017-18        | 2017-18        | Apr. - Dec. 2018-19 (Prov)   | Apr. - Dec. 2018-19 (Prov)   | Apr. - Dec. 2018-19 (Prov)   |
|------------------|------------------|----------------|----------------|------------------|----------------|----------------|------------------|----------------|----------------|------------------------------|------------------------------|------------------------------|
| PRODUCER         | Working Capacity | Production     | % Utilization  | Working Capacity | Production     | % Utilization  | Working Capacity | Production     | % Utilization  | Working Capacity             | Production                   | % Utilization*               |
| PUBLIC SECTOR    | PUBLIC SECTOR    | PUBLIC SECTOR  | PUBLIC SECTOR  | PUBLIC SECTOR    | PUBLIC SECTOR  | PUBLIC SECTOR  | PUBLIC SECTOR    | PUBLIC SECTOR  | PUBLIC SECTOR  | PUBLIC SECTOR                | PUBLIC SECTOR                | PUBLIC SECTOR                |
| SAIL             | 17519            | 14279          | 82             | 17519            | 14494          | 83             | 17519            | 15022          | 86             | 17519                        | 11927                        | 91                           |
| RINL             | 6300             | 3641           | 58             | 6300             | 3962           | 63             | 6300             | 4731           | 75             | 6300                         | 3898                         | 82                           |
| TOTAL            | 23819            | 17920          | 75             | 23819            | 18456          | 77             | 23819            | 19753          | 83             | 23819                        | 15825                        | 89                           |
| PRIVATE SECTOR   | PRIVATE SECTOR   | PRIVATE SECTOR | PRIVATE SECTOR | PRIVATE SECTOR   | PRIVATE SECTOR | PRIVATE SECTOR | PRIVATE SECTOR   | PRIVATE SECTOR | PRIVATE SECTOR | PRIVATE SECTOR               | PRIVATE SECTOR               | PRIVATE SECTOR               |
| Tata Steel Ltd.  | 9600             | 9960           | 104            | 12500            | 11688          | 94             | 13000            | 12459          | 96             | 13000                        | 9767                         | 100                          |
| Essar Steel Ltd. | 10000            | 3685           | 37             | 10000            | 5392           | 54             | 10000            | 6753           | 68             | 10000                        | 5566                         | 74                           |
| JSW Steel Ltd.   | 16600            | 12679          | 76             | 16600            | 16506          | 99             | 18000            | 16407          | 91             | 18000                        | 12635                        | 94                           |
| JSPL             | 4850             | 3177           | 66             | 4850             | 3445           | 71             | 8600             | 4041           | 47             | 8600                         | 3744                         | 58                           |
| Other BOF        | 3160             | 2221           | 70             | 3760             | 2291           | 61             | 7682             | 5645           | 73             | 7682                         | 1823                         | 32                           |
| Other EAF        | 15641            | 13352          | 85             | 17127            | 13186          | 77             | 14408            | 8879           | 62             | 14408                        | 9032                         | 84                           |
| IF Units         | 38300            | 26796          | 70             | 39621            | 26972          | 68             | 42466            | 29221          | 69             | 42466                        | 20667                        | 65                           |
| TOTAL            | 98151            | 71870          | 73             | 104458           | 79480          | 76             | 114156           | 83378          | 73             | 114156                       | 63234                        | 74                           |
| GRAND TOTAL:     | 121970           | 89790          | 74             | 128277           | 97936          | 76             | 13795            | 103131         | 75             | 137975                       | 79059                        | 76                           |

Source: Joint Plant Committee(JPC), * Calculated on pro-data basis.