Lok Sabha Question No. 2202 (UNSTARRED), answered on 2021-08-02
Subject: Modernization and Expansion of Steel Industry
Ministry: STEEL
Asked by: Poonam (Mahajan) Vajendla Rao

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO.2202 FOR ANSWER ON 02/08/2021

## MODERNIZATION AND EXPANSION OF STEEL INDUSTRY

2202.  SHRIMATI POONAM MAHAJAN:

Will the Minister of STEEL be pleased to state:

- (a) whether  it  is  a  fact  that  the  steel  industry  in  the  country  is  grappling  with certain challenges to become a USD 5 trillion economy in five years as per the last National Steel Policy and if so, the details thereof?
- (b) whether  it  is  also  a  fact  that  fiscal  slowdown  of  the  country  has  showed negative steel consumption thereof?
- (c) if so, the details thereof;
- (d) whether it  is  also  a  fact  that  the  mining  lease  of  some  38  working  iron  ore mines is going to lapse soon and SAIL has been awarded 25 per cent of commercial mining which may boost the steel scenario of the country; and
- (e) the policy of  the  Government  to  disinvest  steel  sector  along with the modernization and expansion programme of SAIL subsidiaries ?

## ANSWER

(SHRI RAM CHANDRA PRASAD SINGH)

- (a) National Steel Policy, 2017 notified on 8 th May, 2017 envisages domestic steel capacity to reach 300 MTPA by 2030-31.  The total steel production capacity of the country at present is 143.91 Million Tonnes and is expected to reach 172.5 MT by 2024-25 towards achieving USD 5 trillion economy.
- (b)&(c):  The  details  of  consumption  of  total  finished  steel  during  FY  2019-20,  FY 2020-21 and FY 2021-22 are as following:-
- (d) The mining lease of 4 iron ore mines will expire by March, 2022.

| Total Finished Steel Consumption             | Total Finished Steel Consumption             | Total Finished Steel Consumption             | Total Finished Steel Consumption             |
|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
|                                              | 2019-20                                      | 2020-21                                      | April-June 2021*                             |
| Qty. (mt)                                    | 100.17                                       | 94.89                                        | 24.85                                        |
| Source: JPC; *provisional; mt=million tonnes | Source: JPC; *provisional; mt=million tonnes | Source: JPC; *provisional; mt=million tonnes | Source: JPC; *provisional; mt=million tonnes |

Ministry  of  Mines  vide  order  dated  16.09.2019  has  issued  directions under Section 20A of the MMDR Act to the concerned State Governments to allow Steel Authority  of  India  Limited  (SAIL)  to  sell  in  a  year  upto  a  quantity  equivalent  to maximum 25% of total mineral production in the previous year from its captive mines in open market for a period of 2 years, and also allow the sale of sub-grade minerals lying at the mine pit heads of captive mines of SAIL.

Ministry  of  Mines  has  amended  the  MMDR  Act,  1957  through  MMDR Amendment  Act,  2021,  which  was  notified  on  28.03.2021, Section  8A(7A)  of  the amended Act provides that any lessee, where mineral is used for captive purpose, sell mineral up to fifty per cent of the total mineral produced in a year after meeting the requirement of the end use plant linked with the mine in a manner prescribed by the Central Government subject to the payment specified under Sixth Schedule of the Act.

(e) The policy of the Central Government to disinvest including in the steel sector, at present, is governed by New  Public Sector Enterprise (PSE) Policy for Armanirbhar Bharat notified by the Government on 4 th February, 2021.  There is no plan for modernisation  and  expansion  of  the  only  operating  subsidiary  of  SAIL  i.e. SAIL Refractory Company Limited (SRCL), located in Salem, Tamil Nadu.

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