Lok Sabha Question No. 1182 (UNSTARRED), answered on 2024-07-30
Subject: Steel Sector
Ministry: STEEL
Asked by: Shri Y S Avinash Reddy

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO. 1182

FOR ANSWER ON 30.07.2024

## STEEL SECTOR

## 1182. SHRI Y S AVINASH REDDY:

Will the Minister of STEEL be pleased to state:

- (a)  whether more investment represents a substantial commitment to the stainless steel sector in the States, if so, the details thereof;
- (b) whether the demand for stainless steel is expected to grow at an average of 10% annually over the next few financial years, doubling the growth rate of 4.5% in the last five financial years in the country and if so, the details thereof and the subsidies being given to steel sector growth since 2014; and
- (c) the details of privatization along with the reasons therefor?

## ANSWER

THE MINISTER OF STATE IN THE         (SHRI BHUPATHIRAJU SRINIVASA VARMA) MINISTRY OF STEEL

(a)&(b): Steel is a deregulated sector and the decisions related to the kind of steel produced are taken by the individual steel producers based on market demand and  other  commercial  considerations.  Data  on  the  consumption  of  total  finished stainless steel in India during the last five financial years is given below and indicates a Compound Annual Growth Rate (CAGR) of 4.36% during this 5-year period :-

| Year                                             | Total Finished Stainless Steel Consumption (mt)   | CAGR             |
|--------------------------------------------------|---------------------------------------------------|------------------|
| 2018-19                                          | 3.03                                              | -                |
| 2019-20                                          | 2.71                                              | -10.56           |
| 2020-21                                          | 2.39                                              | -11.81           |
| 2021-22                                          | 3.04                                              | 27.20            |
| 2022-23                                          | 3.43                                              | 12.83            |
| 2023-24                                          | 3.75                                              | 9.33             |
| Source: Joint Plant Committee; mt=million tonnes | Source: Joint Plant Committee; mt=million tonnes  | Avg. CAGR: 4.36% |

Since steel being a de-regulated sector, no subsidy has been given to the steel sector since 2014. However, to create a conducive policy environment for the development

of  the  steel  sector  and  to  promote  'Make  in  India',  the  Government  has  taken  the following initiatives: -

- i. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP)  Policy for promoting Made  in India steel for  Government procurement.
- ii. The Government has launched the Production Linked Incentive (PLI) Scheme for specialty steel to promote the manufacturing of 'Specialty Steel' within the country and reduce import by attracting capital investments. The anticipated additional  investment  under  PLI  Scheme  for  specialty  steel  is  Rs.  29,500 crores and an additional capacity creation of around 25 million tonnes (MT) for specialty steel.
- iii. Make  in  India  initiative  and  the  PM  Gati-shakti  National  Master  Plan  with further engagement with potential users, including from Railways, Defence, Petroleum  and  Natural  Gas,  Housing,  Civil  Aviation,  Road  Transport  and Highways, Agriculture and Rural Development sectors to enhance the steel usage,  overall  demand  for  steel  and  investment  in  the  steel  sector  in  the country.
- iv. Coordination with Ministries and States, besides other countries for facilitating the availability of raw material for steel making on more favourable terms.
- v. Notification  of  Steel  Scrap  Recycling  Policy  to  enhance  the  availability  of domestically generated scrap.
- vi. Notification of 145  numbers  Steel Quality Control Orders to prevent manufacturing and import of non-standardized steel and to make available quality steel products to the public at large.

(c) The policy of strategic disinvestment/privatization of Public Sector Undertakings (PSUs) is based on the economic principle that the Government should discontinue  in  sectors,  where  competitive  markets  have  come  to  age  and  the economic potential of such entities may be better discovered in the hands of strategic investors due to various factors such as infusion of capital, technologic upgradation and efficient  management practices.  Strategic  Disinvestment  sale  implies entire  or substantial  sale  of  Government  shareholding  of  PSES,  along  with  transfer  of management control.

## Details of privatization of Steel Plants:-

| Year    | Name of the PSE                      | Method of Disinvestment               |
|---------|--------------------------------------|---------------------------------------|
| 2022-23 | Neelachal Ispat Nigam Limited (NINL) | Strategic Disinvestment/Privatisation |

*****