Lok Sabha Question No. 3419 (UNSTARRED), answered on 2021-08-09
Subject: Reducing High Input Cost in Steel
Ministry: STEEL
Asked by: Feroze Varun Gandhi

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.3419

FOR ANSWER ON 09/08/2021

## REDUCING HIGH INPUT COST IN STEEL

## 3419.  SHRI FEROZE VARUN GANDHI:

Will the Minister of STEEL be pleased to state:

- (a) the steps being taken by the Government to reduce the high input cost in steel manufacturing with respect to the National Steel Policy along with the steps taken by Government to achieve the target of producing 300 MT of steel;
- (b) the  amount  spent  on  import  of  coking  coal,  a  key  raw  material  in  steel manufacturing during the year 2019-2020; and
- (c) total amount spent in manufacturing steel during the year 2019-2020 ?

## ANSWER

(SHRI RAM CHANDRA PRASAD SINGH)

- (a) Steel  is  a  de-regulated  sector.  Commercial  decisions  such  as  production, export/import  are  taken  by  the  steel  companies.  However,  the  Government  has taken various steps to reduce the input cost in steel manufacturing by increasing the availability of iron ore, which include, inter-alia, Mining and Mineral Policy reforms to ensure enhanced production and availability of iron ore, early operationalization of forfeited working mines of Odisha by the State/Central PSUs. Further, BCD on steel scrap has been exempted for a period up to 31 st March, 2022. Further, steps taken by the Ministry towards achieving the vision of 300 MT capacity by 2030-31 include the following:-
- (i) Notification  of  Domestically  Manufactured  Iron  &  Steel  Products  (DMI&SP) Policy for promoting procurement of Made in India steel.
- (ii) Notification  of  Steel  Scrap  Recycling  Policy  to  enhance  the  availability  of domestically generated scrap.
- (iii) Issuance of Steel Quality Control Orders to stop manufacturing and import of non-standardized steel.
- (iv) Notification of Steel Import Monitoring System (SIMS) for advanced registration of steel imports.
- (v) Notification  of  Production-Linked  Incentive  (PLI)  Scheme  for  Specialty  Steel with an outlay of ₹6,322 crores.
- (vi) Engagement  with  various  stakeholders  including  industry  associations  and leaders  of  domestic  steel  industry  to  address  their  issues  by  the  concerned Ministries/Departments of the Central Government and State Governments.
- (vii) Engagement  with  relevant  stakeholders  including  from  Railways,  Defence, Petroleum  and  Natural  Gas,  Housing,  Civil  Aviation,  Road  Transport  and Highways, Agriculture and Rural Development sectors to enhance the steel usage and overall demand for steel in the country.
- (viii) Establishment  of  Project  Development  Cell  in  the  Ministry  to  attract  and facilitate investment in the steel sector.

Contd..............2/-

- (b) The details of total coking coal import during 2019-20 are as follows:-
- (c) The  estimated  value  of  finished  steel  produced  during  the  year  2019-20  is about ₹4.5 lakh crores. [Source: JPC]

| Year    |   Quantity (in Million Tonnes) |   Value (in ₹ Crores) |
|---------|--------------------------------|-----------------------|
| 2019-20 |                          51.83 |                 61267 |

Source: Ministry of Coal

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