Lok Sabha Question No. 968 (UNSTARRED), answered on 2021-02-08
Subject: Demand for Steel
Ministry: STEEL
Asked by: Dayakar Pasunoori

## THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.968 FOR ANSWER ON 08/02/2021

## DEMAND FOR STEEL

968. SHRI PASUNOORI DAYAKAR:

Will the Minister of STEEL be pleased to state:

(a) whether the demand for steel in the country is likely to increase in 2021, under the  Government's  efforts  of  improving  infrastructure,  coupled  with  the  'Atma  Nirbhar Bharat' policy and the Production Linked Incentive Scheme is bound to further boost the money inflow into the system;

- (b) if so, the details thereof and progress made in this regard;
- (c) the situation of pre and post COVID-19 estimated for steel demand and supply?

## ANSWER

## (SHRI DHARMENDRA PRADHAN)

(a)&(b):  Yes,  Sir.  The  announcements  in  Budget  for  the  Financial  Year,  2021-22  viz. Capex allotment of Rs. 1,07,100 crore for Railways, 2.87 lakh crore outlay for Jal Jeevan Mission,  Construction  of  roads  under  Bharatmala  Pariyojana  project,  Swachh  Bharat Mission 2.0, Scheme for Mega Textile Parks etc. will lead to increased demand for steel in the country. The Vision for Atmanirbhar Bharat and the Production Linked Incentive (PLI) Scheme will also  help attract capital investments and thereby enhance demand and production of  steel in the country. The Government has also approved inclusion of 'Speciality Steel' under the PLI Scheme.

(c) The production and consumption of total finished steel (Non-alloy, alloy/stainless) in  India  during  the  period  from  April  to  June,  2020   had  declined  substantially  as compared  to  the  corresponding  period  last year. However,  the  production  and consumption  have  shown  sharp  recovery  subsequently  and  substantial  increase  in recent months. In December, 2020, production and consumption were 9.32 MT and 9.68 MT,  showing  growth  of  1.08%  and  11.91%  on  month-on-month  basis respectively compared to the corresponding period last year. The details of month wise production and consumption during April, 2019-20 and 2020-21 are given below:-

| Month     | Production (MT)   | Production (MT)   | %Change (MoM basis)   | Consumption (MT)   | Consumption (MT)   | %Change (MoM basis)   |
|-----------|-------------------|-------------------|-----------------------|--------------------|--------------------|-----------------------|
|           | 2019-20           | 2020-21*          | %Change (MoM basis)   | 2019-20            | 2020-21            | %Change (MoM basis)   |
| April     | 8.67              | 1.57              | - 81.89               | 7.33               | 1.09               | -85.13                |
| May       | 9.04              | 5.52              | - 38.94               | 8.85               | 4.79               | -45.88                |
| June      | 8.83              | 6.94              | -21.40                | 8.59               | 6.35               | -26.08                |
| July      | 8.61              | 8.13              | -5.57                 | 8.57               | 7.69               | -10.27                |
| August    | 8.36              | 8.56              | 2.39                  | 9.19               | 8.16               | -11.21                |
| September | 8.11              | 8.52              | 5.06                  | 8.45               | 8.45               | 0                     |
| October   | 8.32              | 9.08              | 9.13                  | 8.83               | 9.33               | 5.66                  |
| November  | 8.57              | 8.90              | 3.85                  | 7.77               | 9.08               | 16.86                 |
| December  | 9.22              | 9.32              | 1.08                  | 8.65               | 9.68               | 11.91                 |
| January   | 9.11              | -                 | -                     | 9.17               | -                  | -                     |
| February  | 8.57              | -                 | -                     | 8.55               | -                  | -                     |
| March     | 7.20              | -                 | -                     | 6.21               | -                  | -                     |

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