Lok Sabha Question No. 1189 (UNSTARRED), answered on 2024-12-03
Subject: Steel Manufacturing Capacity
Ministry: STEEL
Asked by: Shri Dulu Mahato, Shri Bidyut Baran Mahato

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO. 1189

FOR ANSWER ON 03.12.2024

## STEEL MANUFACTURING CAPACITY

1189. SHRI DULU MAHATO: SHRI BIDYUT BARAN MAHATO:

Will the Minister of STEEL be pleased to state:

- (a) the details of initiatives taken to increase steel manufacturing capacity and maintain competitiveness in the national and global steel markets in Jharkhand, particularly in Dhanbad;
- (b)  the  manner  in  which  the  Government  proposes  the  infrastructure,  such  as transportation (rail, road and ports) and power supply, to support the growth of the steel industry in Jharkhand and ensure the efficient movement of raw materials and finished products; and

(c) whether there are incentive policies to encourage steel companies in Jharkhand to prioritize local recruitment and provide jobs to the residents of the State, especially in regions around Jamshedpur?

## ANSWER

(SHRI H. D. KUMARASWAMY)

- a) Steel is a deregulated sector and government acts as a facilitator. The decision regarding increasing manufacturing capacity is taken by industry based on technocommercial  considerations  including  raw  material  availability,  distance  from  port, logistics etc. The Government has taken the following measures to create a conducive policy environment for boosting the steel sector in the country including Jharkhand:-
- i. Promotion of 'Made in India' steel and expanding investments:-
- a.  Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP)  Policy  for promoting  'Made  in India' steel  for  Government procurement.
- b.  Launch of the Production Linked Incentive (PLI) Scheme for Specialty Steel to promote the manufacturing of 'Specialty Steel' within the country and reduce imports by attracting capital investments. The anticipated additional investment under the PLI Scheme for Specialty Steel is Rs. 27,106 crores, downstream  capacity  creation  of  around  24  million  tonnes  and  a  direct employment generation of 14,760.
- c.  A capex of Rs.11,11,111 crore, announced in Union Budget FY 2024-25, has given  thrust  to  infrastructure  expansion  which,  in  turn,  has  increased  steel consumption.

- ii. Improve raw material availability and reduce raw material cost:-
- a.  Reduction in the Basic Customs Duty on Ferro Nickel, a raw material from 2.5 percent to zero, making it duty free.
- b.  Extension of duty exemption on ferrous scrap upto 31 st  March 2026, in the Budget 2024.
- c. Notification  of  Steel  Scrap  Recycling  Policy  to  enhance  the  availability  of domestically generated ferrous scrap.
- iii. Import monitoring and quality control:-
- a.  Revamping of Steel Import Monitoring System (SIMS) for effective monitoring of imports to provide granular details on imports to the domestic steel industry.
- b.  Introduction  of  steel  Quality  Control  Orders  thereby  banning  sub-standard/ defective steel products in domestic market as well as imports to ensure the availability of quality steel to the industry, users and public at large. As per the Order, it  is  ensured  that  only  quality  steels  conforming  to  the  relevant  BIS standards  are  made  available  to  the  end  users.  As  on  date,  151  Indian Standards are notified under the Quality Control Order covering carbon steel, alloy steel and stainless steel.
- iv. Other measures:-
- a.  Coordination with Ministries and States for expeditious statutory clearances and  other  countries  for  facilitating  the  availability  of  raw  material  for  steel making on more favourable terms.
- b) Development of infrastructure such as transportation and power supply are a continuous and dynamic process taken up based on socio-economic considerations, liabilities of ongoing projects, overall availability of funds and competing demands. In the  state  of  Jharkhand,  the  present  length  of  National  Highway  (NH)  is  3,633  km, length  of  railway  lines  is  3,070  km  and  the  installed  capacity  of  power  utilities  is 3002.50 MW which supports the growth of all industries, including steel. Infrastructure projects valued at over Rs.70,000 crore are in various stages of commissioning in the state of Jharkhand.
- c) The Ministry of Steel has notified the Production Linked Incentive (PLI) scheme for specialty steel to promote the manufacturing of 'Specialty Steel' which will create additional  employment  in  steel  sector  within  the  country  including  the  state  of Jharkhand.

******