Lok Sabha Question No. 1290 (UNSTARRED), answered on 2019-02-11
Subject: Decline in Steel Production
Ministry: STEEL
Asked by: RAMDAS CHANDRABHANJI TADAS, CHANDRA PRAKASH JOSHI, RAVNEET SINGH

## DECLINE IN STEEL PRODUCTION

1290.  SHRI RAMDAS C. TADAS: SHRI CHANDRA PRAKASH JOSHI: SHRI RAVNEET SINGH:

Will the Minister of STEEL be pleased to state:

- (a) whether there has been decline in steel production during each of the last four years and the current year, if so, the details thereof and the reasons therefor;

(b) whether the steel imports have reduced in the country, if so, the details thereof including the quantum of steel imported during the said period;

(c) whether  the  Government  has  adhered  to  the  National  Steel  Policy  for increasing the domestic steel production capability, if so, the details thereof; and

- (d) whether the steel plants of Steel Authority of India Limited have been incurring losses during the said period and if so, the details thereof and the reasons therefor?

## ANSWER

THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a) No, Madam. Data on production of crude steel and total finished steel (nonalloy  +  alloy/stainless)  during  last  four  years  and  current  year  i.e.  April-December, 2018 is given below:-

|                                                   | Production (in mt)                                | Production (in mt)                                |
|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|
| Year                                              | Crude Steel                                       | Total Finished Steel (non-alloy+ alloy/stainless) |
| 2014-15                                           | 88.98                                             | 104.58                                            |
| 2015-16                                           | 89.79                                             | 106.60                                            |
| 2016-17                                           | 97.94                                             | 120.14                                            |
| 2017-18                                           | 103.13                                            | 126.85                                            |
| April-December, 2018*                             | 79.059                                            | 97.598                                            |
| Source: Joint Plant Committee(JPC); * Provisional | Source: Joint Plant Committee(JPC); * Provisional | Source: Joint Plant Committee(JPC); * Provisional |

(b) Data on overall import of total finished steel (non-alloy+ alloy/stainless) in last four years and current year i.e. April-December, 2018 is given below:-

| Total Finished Steel (alloy + non-alloy) Import   | Total Finished Steel (alloy + non-alloy) Import   |
|---------------------------------------------------|---------------------------------------------------|
| Year                                              | Qty. (mt)                                         |
| 2014-15                                           | 9.32                                              |
| 2015-16                                           | 11.71                                             |
| 2016-17                                           | 7.23                                              |
| 2017-18                                           | 7.48                                              |
| April-December 2018*                              | 5.91                                              |
| Source: JPC;*provisional;                         |                                                   |

(c) Yes,  Madam.  The  National  Steel  Policy  2017  is  a  road  map  for  the  steel industry  given  a  pre-defined  economic  growth  path.  Any  change  in  the  domestic capability of the steel industry depends on the investment being made by the steel companies of India (including the public sector) based on sound commercial needs and practices. The government is not involved in the changes to domestic capacity as steel as a deregulated industry.

(d) The year-wise Profit Before Tax (PBT) and Profit After Tax of SAIL for last four years is given as under:

Rs. Crore

| Year    | Profit (+) / Loss (-) before Tax (PBT)   | Profit (+) / Loss (-) after Tax (PAT)   |
|---------|------------------------------------------|-----------------------------------------|
| 2014-15 | 2359                                     | 2093                                    |
| 2015-16 | - 7008                                   | - 4021                                  |
| 2016-17 | - 4851                                   | - 2833                                  |
| 2017-18 | - 759                                    | - 482                                   |

SAIL  had  losses  from  the  FYs  2015-16  till  2017-18  due  to  the  following reasons:-

-  Lower Net Sales Realisation of steel products.
-  Increase in the imported coal prices, particularly 2016-17 onwards.
-  Adverse  impact  of  levy  of  contribution  to  District  Mineral  Foundation  (DMF) and National Mineral Exploration Trust (NMET).
-  Higher  usage  of  imported  coal  in  the  blend  due  to  lower  availability  of indigenous coal.
-  Increase in salary & wages.
-  Higher interest charges and reduction in interest earning on term deposits.
-  Higher depreciation due to capitalisation of new facilities.

Losses of SAIL have however been reducing over the last 3 years.

********