Lok Sabha Question No. 1202 (UNSTARRED), answered on 2024-12-03
Subject: Production and Import of Crude Steel
Ministry: STEEL
Asked by: Shri  Selvaganapathi T.M.

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO. 1202 FOR ANSWER ON 03.12.2024

## PRODUCTION AND IMPORT OF CRUDE STEEL

## 1202. SHRI SELVAGANAPATHI T.M.:

Will the Minister of STEEL be pleased to state:

- (a)  whether  it  is  a  fact  that  our  country  is  the  world's  second-biggest  crude  steel producer and also become a net importer of the alloy in the fiscal year through March, 2024 and the trend has continued in the current year, if so, the details thereof;
- (b) whether it is also a fact that the finished steel imports from China hit a seven-year high during April and August in the current year, while overall finished steel imports hit a six-year high of 3.7 million metric tonnes, if so, the details thereof;
- (c)  whether  the  Indian  Steel  Association  has  requested  the  Government  to  take measures to protect the domestic steel industry; and
- (d) if so, the action taken by the Government in this regard?

## ANSWER

(SHRI H. D. KUMARASWAMY)

- (a) India is the world's second largest crude steel producer with production of 144.3 million tonnes crude steel in FY 2023-24. India was net importer of finished steel during 2023-24 with export of 7.49 million tonnes and import of 8.32 million tonnes. During the  current  financial  year  i.e.  April-October  2024-25  (prov.),  import  and  export  of finished steel was 5.77 million tonnes and 2.75 million tonnes, respectively.
- (b) Import of finished steel from China during April-August of last seven financial years is given in the table below:-

| Period                | Finished Steel Import (in million tonnes)   | Finished Steel Import (in million tonnes)   |
|-----------------------|---------------------------------------------|---------------------------------------------|
|                       | From China                                  | Total                                       |
| April-August 2018-19  | 0.64                                        | 3.33                                        |
| April-August 2019-20  | 0.59                                        | 3.45                                        |
| April-August 2020-21  | 0.39                                        | 1.67                                        |
| April-August 2021-22  | 0.36                                        | 1.96                                        |
| April-August 2022-23  | 0.47                                        | 2.06                                        |
| April-August 2023-24  | 0.86                                        | 2.78                                        |
| April-August 2024-25* | 1.13                                        | 3.72                                        |

Source: Joint Plant Committee(JPC); *provisional

(c)&(d): Yes,  Sir.  Steel  is  a  de-regulated  sector.  The  Government  acts  as  a facilitator,  by creating a conducive policy environment for the development of steel sector.  Following  measures  have  been  taken  by  the  Government  to  protect  the domestic steel industry:-

- i. In the Union Budget 2024-25, Basic Customs Duty (BCD) has been reduced from 2.5% to Nil on Ferro-Nickel and Molybdenum ores and concentrates which are  raw  materials  for  steel  industry.  BCD  exemption  on  Ferrous  Scrap  and specified raw material for manufacture of CRGO steel has been continued upto 31.03.2026.
- ii. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting 'Made in India' steel for Government procurement.
- iii. Launching 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. 29,500 crores with an additional capacity creation of around 25 million tonnes (MT) for specialty steel.
- iv. Revamping of Steel Import Monitoring System (SIMS) 2.0 for more effective monitoring of imports to address the concerns of domestic steel industry.
- v. Notification  of  Steel  Scrap  Recycling  Policy  to  enhance  the  availability  of domestically generated scrap.
- vi. Introduction  of  Steel  Quality  Control  Order  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  ensured  that  only  quality  steels  conforming  to  the  relevant  BIS standards is make available to the end users. As on date, 151 Indian Standards stands notified  under  the  Quality  Control  Order  covering  carbon  steel,  alloy steel and stainless steel.

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