Lok Sabha Question No. 964 (UNSTARRED), answered on 2018-12-17
Subject: Crude Steel Production
Ministry: STEEL
Asked by: M. CHANDRAKASI

## LOK SABHA

## UNSTARRED QUESTION NO.964 FOR ANSWER ON 17/12/2018

## CRUDE STEEL PRODUCTION

964. SHRI M. CHANDRAKASI:

Will the Minister of STEEL be pleased to state:

- (a) the quantum of crude steel produced and consumed in the country during the last three years and the current year;
- (b) whether any study has been conducted to assess the pattern of demand for steel in future;
- (c) if so, the details and the findings thereof;
- (d) the financial performance of domestic steel industry during the last two years and reasons for depressed condition of domestic steel industry; and
- (e) the steps taken/being taken to address the issues affecting steel companies/industry in the country?

## ANSWER

THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

- (a) Data on production of crude steel and consumption of finished steel by India during the last three years i.e. 2015-16, 2016-17, 2017-18 and current year is shown below:-

| Year                |   Crude steel Production (mt) |   Finished Steel Consumption (mt) |
|---------------------|-------------------------------|-----------------------------------|
| 2015-16             |                         89.79 |                             81.52 |
| 2016-17             |                         97.94 |                             84.04 |
| 2017-18             |                        103.13 |                             90.71 |
| April-October 2018* |                         61.03 |                             55.99 |

Source: JPC;*provisional

(b)&(c): Yes, Madam.  The broad sectors covered under the Study are Infrastructure and Construction, Defence, Automobiles, Consumer and Capital Goods.

- (d) The financial performance of domestic steel industry during the last two years are given below:-

## Performance of Major Steel Companies

| Name of the Company                     | Profit After Taxes   | Profit After Taxes   |
|-----------------------------------------|----------------------|----------------------|
|                                         | 2016-17              | 2017-18              |
| Steel Authority of India Limited (SAIL) | -2833                | -481.71              |
| Rashtriya Ispat Nigam Limited (RINL)    | -1263                | -858                 |
| Tata Steel                              | 3444.55              | 4169.55              |
| JSW                                     | 3576.54              | 4625                 |
| JSPL                                    | -986.45              | -361.61              |

Source :

Company website

(figs. in Rs. Crores)

Imports had adversely impacted the domestic steel prices and the viability of domestic steel producers. Declining prices led to lower sales realization for domestic steel producers. Indian steel companies witnessed severe erosion in their profits in the period. Lower realizations and resulting losses led to steel companies' impaired capability  to  service  their  debts  which  aggravated  the  bad  debts  problem  in  the sector.

- (e) The Government has taken the following steps to address the issues affecting steel companies/industry in the country the issues:-
- Notified  various  trade  remedial  measures  such  as  Minimum  Import  Price (MIP), Anti-Dumping Duty and Safeguard Duty;
- Easing out financial restructuring norms through Reserve Bank of India (RBI) and  Ministry  of  Finance  v.i.z  5:25  scheme  and  Scheme  for  Sustainable Structuring of Stressed Assets (S4A);
- Initiated processes to reduce input cost, replace imports & enhance domestic consumption;
- Policy  for  providing  preference  to  Domestically  Manufactured  Iron  and  Steel products in Government Procurement;
- Establishment of Steel Research Technology Mission of India (SRTMI);Modified GFR guidelines to incorporate life cycle cost analysis while formulating the design and specification in the public/PPP projects which will create  further  demand  of  steel  and  hence  incentivize  steel  companies  to increase production capacity.

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