Lok Sabha Question No. 2899 (UNSTARRED), answered on 2022-08-03
Subject: Domestic Production and Import of Steel
Ministry: STEEL
Asked by: Dulal Chandra Goswami

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.2899 FOR ANSWER ON 03/08/2022

## DOMESTIC PRODUCTION AND IMPORT OF STEEL

2899. SHRI DULAL CHAND GOSWAMI:

Will the Minister of STEEL be pleased to state:

(a) the details of domestic production and import ofsteel in the country during each of the last two yearsand the current year;

(b)  whether  imports  of  steel  have  adversely  affectedthe  domestic  manufacturers during the said period;

(c) if so, the details thereof and the reaction of theGovernment thereto; and

(d)  the  steps  taken/being  taken  by  the  Governmentto  promote  the  domestic  steel industry in the countryand the achievements made in this regard so far?

## ANSWER

(SHRI FAGGAN SINGH KULASTE)

THE MINISTER OF STATE IN THE MINISTRY OF STEEL

(a) Details of quantity of domestic production and import of finished steel during last two years and current year are given below:-

| Period                                                      | Production (mt)                                             | Import (mt)                                                 |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| 2020-21                                                     | 96.20                                                       | 4.75                                                        |
| 2021-22                                                     | 113.60                                                      | 4.67                                                        |
| 2022-23 (April-June)*                                       | 28.89                                                       | 1.17                                                        |
| Source: Joint Plant Committee; *provisional; mt=million Ton | Source: Joint Plant Committee; *provisional; mt=million Ton | Source: Joint Plant Committee; *provisional; mt=million Ton |

(b) Steel consists of several grades & categories having 507 tariff lines at 8-digit classification  in  Chapter-72 with a total  of 901 steel producing units in the country. Some  of  the  domestic  manufacturing  may  have  been  adversely  affected  by  the imports  of  steel.  Thedomestic  production  and  consumption  of  finished  steel  during the last two years and current year has risen. Furthermore, overall share of domestic production  in  the  consumption  of  finished  steel  has  been  increasing  and  that  of imports are decreasing:-

|                                           | Consumption (in mt)                       | Consumption (in mt)                       | Consumption (in mt)                       | %Share of Import in Consumption           | %Share of Domestic Production             |
|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|
| Year                                      | Total                                     | Share of import                           | Share of domestic production              | %Share of Import in Consumption           | in Consumption                            |
| 2020-21                                   | 94.89                                     | 4.75                                      | 90.14                                     | 5.0%                                      | 95.0%                                     |
| 2021-22                                   | 105.75                                    | 4.67                                      | 101.08                                    | 4.4%                                      | 95.6%                                     |
| 2022-23 (April-June*)                     | 27.69                                     | 1.17                                      | 26.52                                     | 4.2%                                      | 95.8%                                     |
| Source: JPC, mt=Million Ton, *Provisional | Source: JPC, mt=Million Ton, *Provisional | Source: JPC, mt=Million Ton, *Provisional | Source: JPC, mt=Million Ton, *Provisional | Source: JPC, mt=Million Ton, *Provisional | Source: JPC, mt=Million Ton, *Provisional |

(c) to (d): Steel is a deregulated sector and the role of the Government is that of a facilitator.  Decisions  such  as  production,  import  and  export  are  market  driven,  and are  taken  by  the  steel  companies  based  on  techno-commercial  considerations. Government  has  notified  the  following  steps  to  protect  and  promote  the  domestic steel industry, which include:-

- i. Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting procurement of Made in India steel.
- ii. Steel Quality Control Order to stop manufacturing and import of nonstandardized steel.
- iii. Steel  Import  Monitoring  System  (SIMS)  for  advanced  registration  of  steel imports.
- iv. Production-Linked Incentive (PLI) Scheme for Specialty Steel with an outlay of ₹6322 Crore.

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