Lok Sabha Question No. 150 (STARRED), answered on 2020-03-02
Subject: Modernisation and Expansion of Steel Plants
Ministry: STEEL
Asked by: Durga Prasad Rao Balli, Queen Oja

## LOK SABHA STARRED QUESTION NO.*150 FOR ANSWER ON 02/03/2020

## MODERNISATION AND EXPANSION OF STEEL PLANTS

- *150.  SHRI BALLI DURGA PRASAD RAO: SHRIMATI QUEEN OJA:

Will the Minister of STEEL be pleased to state:

- (a) whether  the  Indian  steel  industry  continues  to  grapple  with  uncertainties pertaining to availability of consistent supplies of raw materials i.e. coal and iron ore;
- (b) if  so, the details thereof along with the action taken/proposed to be taken by the Government in this regard; and
- (c) the  measures  taken/proposed  to  be  taken  by  the  Government  in  regard  to modernisation and expansion of the existing steel units as well as green-field plants to build a world class, cost competitive and socially responsible steel industry?

## ANSWER

(SHRI DHARMENDRA PRADHAN)

THE MINISTER OF STEEL

(a)to(c):  A Statement is laid on the Table of the Lok Sabha.

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STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (C) OF THE LOK SABHA STARRED  QUESTION  NO.  *150  FOR  ANSWER  ON  02/03/2020  ASKED  BY  SHRI BALLI  DURGA  PRASAD  RAO  AND  SHRIMATI  QUEEN  OJA,  MEMBERS  OF PARLIAMENT  REGARDING  'MODERNISATION  AND  EXPANSION  OF  STEEL PLANTS'

(a)&(b):  The  production  of  iron  ore  in  the  country  is  sufficient  to  meet  the  current demand/consumption  of  iron  ore  by  domestic  steel  industry.  However,  the  entire demand  of  coking  coal  is  not  met  from  domestic  production  as  the  availability  of high-quality coking coal (low-ash coal) in the country is limited and thus no option is left but to resort to import of coking coal.

In order to further enhance the availability of iron ore in the domestic market, Ministry of Mines, Government of India vide Order dated 16.09.2019, SAIL has been allowed  to  make  available  in  the  open  market  25  percent  of  its  total  mineral production in the previous year. Further, in another separate order dated 16.09.2019, SAIL has also been allowed to dispose of the old stock of 70 Million Tonnes of lowgrade  iron  fines  and  ores  (including  slime)  lying  dumped  across  different  captive mines of SAIL.

As regards coking coal, during 2018-19 the total demand of coking coal for steel industry was 58.37 MT. Out of this, 51.83 MT were met through imports, 1.6 MT  was  provided  by  Bharat  Coking  Coal  Limited  (BCCL)  and  Coal  India  Limited (CIL) and remaining was catered by captive collieries of SAIL and TATA Steel.

In  order  to  secure  coking  coal  supplies  for  the  Indian  steel  industries,  the Government has taken the following steps:-

- i. Setting up of new washeries by BCCL and CIL & enhancement in capacity of existing washery by SAIL.
- ii. To diversify the coking coal import sources, efforts are being made to import coking coal from US, Russia and Mongolia.
- iii. Recent allocation  of  Coking  Coal  Mines  to  Steel  CPSEs,  viz  Tokisud  North Coal Mine and Rohne Coal Mine to NMDC and Rabodih OCP Coal Mine to RINL.
- iv. To grant long term linkage of raw coking coal to SAIL from BCCL.
- v. Extension of Tasra Coking Coal Block lease in favour of SAIL.
6. (c) Steel is a deregulated sector and the role of Government is limited to that of a facilitator. The decisions to modernisation and expansion of steel plants & to set up new steel plants/Greenfield Projects are taken by the respective companies, based on  commercial  considerations,  market  dynamics  and  techno-economic  viability  of projects.

The steps of modernisation and expansion of Steel CPSEs are as under:

- i. SAIL had undertaken modernization and expansion of its five integrated steel plants at Bhilai (Chhattisgarh),  Bokaro  (Jharkhand),  Rourkela  (Odisha), Durgapur (West Bengal) & Burnpur (West Bengal) and Special Steel Plant at Salem  (Tamil  Nadu)  to  enhance  its  crude  steel  capacity  from  12.8  Million tonne per annum (MTPA) to 21.4 MTPA.
- ii. RINL has completed its expansion programme for doubling its capacity from 3 MTPA to   6.3 MTPA in April, 2015 at an estimated cost of Rs 12,291 Cr.  All the units are under operation. Along with modernization, one more Converter and  Caster  have  been  installed  enhancing  the  production  capacity  by  1 MTPA. i.e., from 6.3 MTPA to 7.3 MTPA.
- iii. NMDC is in the process of setting up a 3.0 MTPA Integrated Steel Plant at Nagarnar,  near  Jagdalpur,  Dist.  Bastar,  Chhattisgarh.  The  construction  of plant is in advanced stage of completion.

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