Lok Sabha Question No. 2149 (UNSTARRED), answered on 2021-03-08
Subject: Difficulties faced by Steel Sector
Ministry: STEEL
Asked by: Arjunlal Meena

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO.2149

FOR ANSWER ON 08/03/2021

## DIFFICULTIES FACED BY STEEL SECTOR

## 2149.  SHRI ARJUN LAL MEENA:

Will the Minister of STEEL be pleased to state:

- (a) the steel creation yield in India from 2013-14 to 2020-21;
- (b) the  adjusted  examination  of  yield  with  worldwide  creation  and  India's  own creation in the recent five years;
- (c) the difficulties faced by the Steel business during COVID19;
- (d) the subtleties of import and fare of steel from 2013-14 to 2020-21; and
- (e) whether the Government has made any regulations to control costs, import, fare and creation and if so, the details thereof?

## ANSWER

(SHRI DHARMENDRA PRADHAN)

- (a) The details of crude steel capacity and production in the country for the period 2013-14 to 2020-21(April-January) are as following:-
- (b) The details of crude steel production in the world and in the country for period 2016 -2020 on calendar year basis are as following:-

| Year                                        | Crude Steel (in million tonnes)             | Crude Steel (in million tonnes)             |
|---------------------------------------------|---------------------------------------------|---------------------------------------------|
|                                             | Capacity                                    | Production                                  |
| 2013-14                                     | 102.26                                      | 81.69                                       |
| 2014-15                                     | 109.85                                      | 88.98                                       |
| 2015-16                                     | 121.97                                      | 89.79                                       |
| 2016-17                                     | 128.28                                      | 97.94                                       |
| 2017-18                                     | 137.97                                      | 103.13                                      |
| 2018-19                                     | 142.24                                      | 110.92                                      |
| 2019-20                                     | 142.30                                      | 109.14                                      |
| April-January, 2020-21                      | 142.30                                      | 83.31*                                      |
| Source: Joint Plant Committee; *provisional | Source: Joint Plant Committee; *provisional | Source: Joint Plant Committee; *provisional |

|                                  | Crude steel production (in million tonnes)   | Crude steel production (in million tonnes)   | Crude steel production (in million tonnes)   |
|----------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
| Year                             | World                                        | India                                        | %share of India in World Production          |
| 2016                             | 1632.78                                      | 95.48                                        | 5.8                                          |
| 2017                             | 1735.88                                      | 101.46                                       | 5.8                                          |
| 2018                             | 1825.49                                      | 109.27                                       | 6.0                                          |
| 2019                             | 1846.39                                      | 111.35                                       | 6.0                                          |
| 2020*                            | 1827.81                                      | 100.13                                       | 5.5                                          |
| Source: worldsteel, *provisional | Source: worldsteel, *provisional             | Source: worldsteel, *provisional             |                                              |

Contd……….2/-

(c) Due  to  COVID-19  related  lockdown  restrictions,  the  steel  companies  faced issues  such  as  raw  material  scarcity  and  transportation  related  issues,  limited availability of manpower and reduced demand of finished steel.

(d) The details of import of total finished steel  by India in terms of quantity and value during period 2013-14 to 2020-21 (April-January) are as following:-

| Year                                        | Total Finished Steel (alloy & non-alloy)    | Total Finished Steel (alloy & non-alloy)    |
|---------------------------------------------|---------------------------------------------|---------------------------------------------|
|                                             | Quantity (in million tonnes)                | Value. (in Rs. Crores)                      |
| 2013-14                                     | 5.45                                        | 30416                                       |
| 2014-15                                     | 9.32                                        | 44893                                       |
| 2015-16                                     | 11.71                                       | 45044                                       |
| 2016-17                                     | 7.22                                        | 34104                                       |
| 2017-18                                     | 7.48                                        | 39484                                       |
| 2018-19                                     | 7.84                                        | 49317                                       |
| 2019-20                                     | 6.77                                        | 44683                                       |
| April-January, 2020-21*                     | 3.79                                        | 25422                                       |
| Source: Joint Plant Committee, *provisional | Source: Joint Plant Committee, *provisional | Source: Joint Plant Committee, *provisional |

(e) Steel, being a de-regulated sector, the domestic steel price is determined by various factors like demand and supply, trends in prices of raw materials and is also influenced by global conditions. To increase the domestic production, availability and usage of steel, the Government has taken following steps:-

- (i) Domestically Manufactured  Iron & Steel Products (DMI&SP)  Policy  for promoting procurement of Made in India Steel.
- (ii) Steel Scrap Policy to enhance the availability of domestically generated scrap.
- (iii) Issuance  of  Steel  Quality  Control  Orders  to  stop  non-standardized  steel manufacturing and import.
- (iv) Steel  Import  Monitoring  System  (SIMS)  for  advanced  registration  of  steel imports.
- (v) Inclusion of 'Specialty Steel' under the recently announced Production Linked Incentive (PLI) Scheme.
- (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 overall demand for steel in the country.

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