Lok Sabha Question No. 257 (STARRED), answered on 2023-12-20
Subject: Production of Steel
Ministry: STEEL
Asked by: Thomas Chazhikadan

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## STARRED QUESTION NO. *257 FOR ANSWER ON 20.12.2023

## PRODUCTION OF STEEL

*257. SHRI THOMAS CHAZHIKADAN:

Will the Minister of STEEL be pleased to state

- (a) the change registered in the production of steel in the country during the last five years along with the details of its production, year-wise;

(b) whether the export of steel has declined and if so, the details thereof;

(c) whether the Government is providing any type of incentive to increase the production of steel and if so, the details thereof;

(d) whether the Government has accorded 'in principle' approval for strategic disinvestment of three units of Steel Authority of India Limited (SAIL) viz. Visvesvaraya Iron & Steel Plant (VISP) at Bhadravati in Karnataka, Salem Steel Plant (SSP) in Tamil Nadu and Alloy Steels Plant (ASP) at Durgapur in West Bengal; and

- (e) if so, the details thereof along with the progress made in this regard?

## ANSWER

THE MINISTER OF STEEL                                       (SHRI JYOTIRADITYA M. SCINDIA)

(a)to(e): A statement is laid on the Table of the Lok Sabha.

## STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) OF THE LOK SABHA STARRED  QUESTION  NO  257*  FOR  ANSWER  ON  20.12.2023  ASKED  BY  SHRI THOMAS CHAZHIKADAN, MEMBER OF PARLIAMENT REGARDING 'PRODUCTION OF STEEL'

- (a) Details of the production of crude steel during the last five years are given below and indicate Compound Annual Growth Rate (CAGR) of 4.3% during this 5-year period.
- (b) Details of the overall export of total finished steel in the last five years are given below and indicates a growth during 2019-20, 2020-21, 2021-22 whereas there was a decline in  2022-23 due to levying of export duty on certain steel products in order to increase domestic availability and contain inflation.
- (c) Government  has  approved  the  Production  Linked  Incentive  (PLI)  Scheme  for 'Specialty  Steel'  to  promote  the  manufacturing  of  such  grades  within  the  country  by attracting capital investment and promote technology up-gradation in the steel sector. On 17.03.2023, the Government signed a Memorandum of Understanding (MoU) with 27 companies covering 57 applications for various steel categories covered by the Scheme. Further, Government has increased Capital Expenditure to Rs. 10 lakh crores during FY 2023-24, which in turn encourages investments in Infrastructure projects. This is expected to boost demand for steel. This is in addition to measures taken by Govt. to accelerate growth  of  economy,  which,  in  turn,  raises  demand  for  steel  and  other  construction materials.
- (d)&(e): The strategic disinvestment of  3 plants of SAIL viz Visveswaraya Iron & Steel Plant (VISP), Salem Steel Plant (SSP) and Alloy Steels Plant (ASP) is to be carried out by Department of Investment & Public Asset Management(DIPAM). Presently, for Visveswaraya Iron & Steel Plant Expression of Interest (EoI) process has been called off due  to  lack  of  sufficient  bidder's  interest  to  proceed  and  for  Alloy  Steel  Plant  the transaction has been halted for time being.

| Year                                                   | Crude steel Production Qty (mt)                        |
|--------------------------------------------------------|--------------------------------------------------------|
| 2018-19                                                | 110.92                                                 |
| 2019-20                                                | 109.14                                                 |
| 2020-21                                                | 103.54                                                 |
| 2021-22                                                | 120.29                                                 |
| 2022-23                                                | 127.20                                                 |
| Source: Joint Plant Committee (JPC); mt=million tonnes | Source: Joint Plant Committee (JPC); mt=million tonnes |

| Finished Steel Export   | Finished Steel Export   | Finished Steel Export                              |
|-------------------------|-------------------------|----------------------------------------------------|
| Year                    | Qty(mt)                 | %change over the corresponding period of last year |
| 2018-19                 | 6.36                    | -                                                  |
| 2019-20                 | 8.36                    | 31.4                                               |
| 2020-21                 | 10.78                   | 29.1                                               |
| 2021-22                 | 13.49                   | 25.1                                               |
| 2022-23                 | 6.72                    | -50.2                                              |
| Source: JPC;            | Source: JPC;            | Source: JPC;                                       |

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