Lok Sabha Question No. 2369 (UNSTARRED), answered on 2019-07-08
Subject: Production and Import of Steel
Ministry: STEEL
Asked by: Krupal Balaji Tumane, Rama Devi, Giridhari Yadav

## LOK SABHA UNSTARRED QUESTION NO.2369 FOR ANSWER ON 08/07/2019

## PRODUCTION AND IMPORT OF STEEL

2369.  SHRI KRUPAL BALAJI TUMANE: SHRIMATI RAMA DEVI: SHRI GIRIDHARI YADAV:

Will the Minister of STEEL be pleased to state:

- (a) whether it is a fact that the steel is being imported despite huge production in the country and if so, the details thereof along with the types of steel imported;
- (b) the  reasons  for  not  producing  such  types  of  steel  in  the  country  and  the reaction of the Government thereto;
- (c) the details of the trend and amount of steel imported in the country during the last three years and the current year;
- (d) whether  the  trend  of  fall  in  the  indigenous  steel  production  has  been  seen during the said period and if so, the reasons therefor;
- (e) whether  it  is  true  that  the  import  of  cheap  steel  from  various  countries including China has badly affected the indigenous steel industry and if so, whether the Government proposes to increase import duty on the steel and if so, the details thereof and the time by which it is likely to be done; and
- (f) the other steps taken/proposed to be taken by the Government to protect/promote the indigenous steel industry and to increase the production?

## ANSWER

(SHRI DHARMENDRA PRADHAN)

THE MINISTER OF STEEL

(a)&(b):  Yes,  Sir.  During  the  period  2018-19,  finished  steel  import  stood  at  7.83 million tonnes, an increase of 4.7% in comparison to 2017-18. Stainless Steel, Flat Products such as HR/CR Coils, GP/GC Coated and Electrical Sheets are the major categories that are being imported from other countries. Among the steel grades that are imported, there are some that are not manufactured in adequate quantity in the country viz. CRGO, CR sheets with zero bends, API grade steel sheets/coils, special alloy  steels  of  some  grades  used  in  Automobile  components  etc.  Some  of  the reasons  for  these  grades  not  getting  manufactured  in  India  vary  from  lack  of availability of technology, not enough demand to justify a separate production line.

- (c) Details of finished steel imports in India are as under:-
- (d) No, Sir.

| Year    |   Steel Imports (in million tonnes) |   Value of import( in Rupees crore) |
|---------|-------------------------------------|-------------------------------------|
| 2015-16 |                               11.71 |                               45044 |
| 2016-17 |                                7.23 |                               34104 |
| 2017-18 |                                7.48 |                               39484 |
| 2018-19 |                                7.83 |                               49317 |

(e) The imports of steel for the past two years namely 2017-18 and 2018-19 has been stable and there was an increase of 4.7 % in finished steel imports in 2018-19 over 2017-18 levels.  Imports from China have reduced by 11.7 % from 2017-18 to 2018-19.

(f) Steel is a deregulated sector. However, the following steps have been taken by the Government to protect/promote indigenous steel industry:-

- (i) Domestically Manufactured Iron & Steel Products Policy, 2017 has been revised on 29.05.2019 by not only reducing the threshold minimum value of contract from Rs 50 Cr to Rs. 25 Cr, but also by including Engineering, Procurement and Construction  (EPC)  contracts  within  the  ambit  of  this policy, increase in minimum value addition levels and inclusion of Capital goods.
- (ii) Government  has  also  notified  National  Steel  Policy,  2017  to  promote domestic steel sector.
- (iii) Government  has  notified  53  Steel  and  Steel  Product  (Quality  Control) Orders  which  is  applicable  for  both  domestic  productions  as  well  as imports. The Steel Quality Control Order are implemented in the public interest for protection of human, animal and plant, safety of environment, prevention of unfair trade practices and national security.
- (iv) In order to protect the domestic industry from unfair external competition, appropriate trade measures such as anti dumping duties and countervailing duties have been/are imposed.

********