Lok Sabha Question No. 2295 (UNSTARRED), answered on 2018-12-24
Subject: Performance of Steel Sector
Ministry: STEEL
Asked by: PRATHAP SIMHA, SHOBHA KARANDLAJE

## LOK SABHA UNSTARRED QUESTION NO.2295 FOR ANSWER ON 24/12/2018

## PERFORMANCE OF STEEL SECTOR

2295.  SHRI PRATHAP SIMHA:

KUMARI SHOBHA KARANDLAJE:

Will the Minister of STEEL be pleased to state:

(a) whether India is the third largest Steel Producer in the world and Steel sector contributes to over 2 per cent to India's Gross Domestic Product (GDP) and if so, the details thereof;

- (b) whether the secondary steel sector contributes more than 34 per cent of the total production of Crude Steel and 42.86 per cent of gross finished steel production and if so, the details thereof;
- (c) whether the Ministry has instituted secondary steel sector awards for the first time and if so, the details thereof, including selection criteria fixed thereof;
- (d) whether secondary steel sector comprises of composite and stand-alone steel production and processing units, if so, the details thereof along with the measures taken to create a globally competitive steel industry; and
- (e) whether the consumption of steel in the country has touched 70 kg per capita and  if  so,  the  details  thereof  along  with  the  steps  initiated  to  encourage  the secondary steel sector to strive for improving performance and quality of production?

## ANSWER

THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a) India was the third largest producer of Crude Steel after China and Japan in the year 2015, 2016 and 2017.  However, in 2018 (till Oct, 2018) India became the 2 nd largest  producer  in  the  world.  The  domestic  steel  industry  contributes  to  2  % (approx) in the nation's Gross Domestic Product (GDP).

| Top 3 crude steel producers in the world: 2015, 2016, 2017       | Top 3 crude steel producers in the world: 2015, 2016, 2017       | Top 3 crude steel producers in the world: 2015, 2016, 2017       | Top 3 crude steel producers in the world: 2015, 2016, 2017       | Top 3 crude steel producers in the world: 2015, 2016, 2017       | Top 3 crude steel producers in the world: 2015, 2016, 2017       | Top 3 crude steel producers in the world: 2015, 2016, 2017       | Top 3 crude steel producers in the world: 2015, 2016, 2017       | Top 3 crude steel producers in the world: 2015, 2016, 2017       |
|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|
| 2015                                                             | 2015                                                             | 2015                                                             | 2016                                                             | 2016                                                             | 2016                                                             | 2017*                                                            | 2017*                                                            | 2017*                                                            |
| Rank                                                             | Country                                                          | Qty. (mt)                                                        | Rank                                                             | Country                                                          | Qty. (mt)                                                        | Rank                                                             | Country                                                          | Qty. (mt)                                                        |
| 1                                                                | China                                                            | 803.8                                                            | 1                                                                | China                                                            | 807.6                                                            | 1                                                                | China                                                            | 831.7                                                            |
| 2                                                                | Japan                                                            | 105.1                                                            | 2                                                                | Japan                                                            | 104.8                                                            | 2                                                                | Japan                                                            | 104.7                                                            |
| 3                                                                | India                                                            | 89.0                                                             | 3                                                                | India                                                            | 95.5                                                             | 3                                                                | India                                                            | 101.4                                                            |
| Source: worldsteel; *provisional except India; mt=million tonnes | Source: worldsteel; *provisional except India; mt=million tonnes | Source: worldsteel; *provisional except India; mt=million tonnes | Source: worldsteel; *provisional except India; mt=million tonnes | Source: worldsteel; *provisional except India; mt=million tonnes | Source: worldsteel; *provisional except India; mt=million tonnes | Source: worldsteel; *provisional except India; mt=million tonnes | Source: worldsteel; *provisional except India; mt=million tonnes | Source: worldsteel; *provisional except India; mt=million tonnes |

| World Crude Steel Production: January-October 2018 (p)   | World Crude Steel Production: January-October 2018 (p)   | World Crude Steel Production: January-October 2018 (p)   | World Crude Steel Production: January-October 2018 (p)   |
|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|
| Rank                                                     | Country                                                  | Qty (mt)                                                 | %yoy change                                              |
| 1                                                        | China                                                    | 782.46                                                   | 6.4                                                      |
| 2                                                        | India                                                    | 88.43                                                    | 5.6                                                      |
| 3                                                        | Japan                                                    | 87.19                                                    | -0.1                                                     |
| Source: worldsteel; p= provisional; mt=million tonnes    | Source: worldsteel; p= provisional; mt=million tonnes    | Source: worldsteel; p= provisional; mt=million tonnes    | Source: worldsteel; p= provisional; mt=million tonnes    |

(b) Yes,  Madam.    Secondary  steel  sector  contributes  42.4  per  cent  of  the  total production of Crude Steel and 45.5 per cent of gross finished steel production.

(c) Ministry  of  Steel  has  instituted  an  award  to  recognise  the  secondary  steel sector for  their  contribution  to  the  national  economy  for  the  first  time  in  2018.  The total 26 awards were given away.  The selection of awardees was done by a two tier mechanism  comprising  of  Assessment  Committee  and  Selection  Committee.  The applicants were evaluated based on objective and subjective parameters.

(d) Secondary sector comprises of standalone units (having a single processing facility  only)  and  composite  units  (having  more  than  one  processing  facility). Secondary  steel  sector  awards  were  instituted  to  encourage  the  secondary  steel sector to make more energy efficient and competitive.

(e) No,  Madam.  Per  capita  consumption  of  total  finished  steel  (non-alloy  + alloy/stainless) in India during 2017-18 is 68.9 kg.

The following steps have been taken to encourage the secondary steel sector to strive for improving performance and quality of production:-

1. Launching of an award scheme to recognize and encourage progressive units for adopting energy-efficient technologies and innovative measures.
2. Protecting domestic producers from below-cost import from foreign countries through anti-dumping measures.
3. Increased  focus  on  Quality  through  imposition  of  Quality  control  orders  on Steel  &  Steel  products.  The  implementation  of  these  orders  would  cover around 85-90% of steel and steel products consumed in the country.

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