Lok Sabha Question No. 1271 (UNSTARRED), answered on 2022-02-09
Subject: Housing and Construction
Ministry: STEEL
Asked by: Gowdar Mallikarjunappa Siddeshwara

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.1271

FOR ANSWER ON 09/02/2022

## HOUSING AND CONSTRUCTION

1271.  SHRI G.M. SIDDESHWAR:

Will the Minister of STEEL be pleased to state:

- (a) whether  the  Government  has  noticed  that  the  housing  and  construction projects  are  staring  at  a  slowdown  for  a  few  months  wherein  dealers  and  buyers reporting a shortage of long steel products such as rods, bars and wires;
- (b) if so, the details thereof;
- (c) whether  the  shortage  of  above  mentioned  products  are  due  to  lack  of availability of iron ore; and
- (d) if  so,  the  details  of  the  measures  the  Government  is  planning  to  adopt  to address the issue?

## ANSWER

(SHRI RAM CHANDRA PRASAD SINGH)

(a)to(d):  Details  of  production  and  consumption  of  long  steel  products  used  in  the Housing  and  Construction  sector  in  the  current  year,  month-wise  are  given  below which indicate that there is no shortage of long products domestically: -

| Month                                                                   | Total Long Products (Bars, Rods, Structurals and Railway Materials)     | Total Long Products (Bars, Rods, Structurals and Railway Materials)     |
|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|
|                                                                         | Production                                                              | Consumption                                                             |
| April, 21                                                               | 4835                                                                    | 4992                                                                    |
| May, 21                                                                 | 4144                                                                    | 4264                                                                    |
| June, 21                                                                | 4477                                                                    | 4459                                                                    |
| July, 21                                                                | 4481                                                                    | 4381                                                                    |
| August, 21                                                              | 4935                                                                    | 4654                                                                    |
| September, 21                                                           | 4883                                                                    | 4603                                                                    |
| October, 21                                                             | 5088                                                                    | 4840                                                                    |
| November, 21                                                            | 4803                                                                    | 4469                                                                    |
| December, 21                                                            | 5243                                                                    | 5037                                                                    |
| Total(Apr.-Dec., 21)                                                    | 42889                                                                   | 41699                                                                   |
| Source: Joint Plant Committee (JPC); Provisional; Value in Thousand Ton | Source: Joint Plant Committee (JPC); Provisional; Value in Thousand Ton | Source: Joint Plant Committee (JPC); Provisional; Value in Thousand Ton |

The total production of long products from April, 21-Dec., 21 was more than the consumption. Further, several measures were taken by the Government towards availability of raw material and towards price stability, these included:-

- (i) In Union Budget 2021-22, Customs Duty has been reduced uniformly to 7.5% on  Semis,  Flat  and  Long  products  of  non-alloy,  alloy  and  stainless  steels. Further, Basic Custom Duty (BCD) on steel scrap has been exempted for a period up to 31 st March, 2022.  In addition to the above,  Anti Dumping Duty (ADD) and Countervailing Duties (CVD) on certain steel products have also been revoked / temporarily revoked.
- (ii) In Union Budget 2022-23, the Countervailing Duties (CVD) on stainless-steel products  have  been  revoked.  Also,  Customs  Duty  exemption  on  stainlesssteel scrap has been extended for another year, i.e., till 31.03.2023 to provide relief to the MSME secondary steel producers.
- (iii) Increasing  availability  of  iron  and  steel,  which,  inter-alia,  includes  (a)  Mining and Mineral Policy reforms to enhance production/availability of iron ore and (b) early operationalization of forfeited working mines.
- (iv) Notification  of  Steel  Scrap  Recycling  Policy  to  enhance  the  availability  of domestically generated scrap.
- (v) To  give  relief  to  secondary  and  MSME  sector  steel  industry  engaged  in Housing/Construction  sector,  TMT  bars  below  8  mm  have  been  exempted from the purview of the Quality Control Order, as these are primarily used for non-critical applications.

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