Lok Sabha Question No. 207 (STARRED), answered on 2015-12-14
Subject: Steel Production
Ministry: STEEL
Asked by: RAVINDRA VISHWANATH GAIKWAD, ANANDRAO  ADSUL

## LOK SABHA

## STARRED QUESTION NO.*207

FOR ANSWER ON 14/12/2015

## STEEL PRODUCTION

- *207.  PROF. RAVINDRA VISHWANATH GAIKWAD: SHRI ANANDRAO ADSUL:

Will the Minister of STEEL be pleased to state:

- (a) whether India is lagging behind in the steel production during the current year;

(b) if so, the details of steel production during each of the last three years and the current year along with the position of India in the global steel production ranking;

(c) whether  the  steel  industry  needs  huge  investment  to  meet  its  enhanced production capacity in future;

(d) if so, the details thereof; and

(e) the  steps  taken  by  the  Government  to  enhance  steel  production  capacity under the Make-in-India initiative to meet the projected demand in the country?

## ANSWER

THE MINISTER OF STEEL AND MINES (SHRI NARENDRA SINGH TOMAR)

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

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (A)  TO  (E)  OF  THE  LOK SABHA STARRED QUESTION NO.*207 FOR ANSWER ON 14/12/2015 TABLED BY PROF. RAVINDRA VISHWANATH GAIKWAD AND SHRI ANANDRAO ADSUL, MEMBERS OF PARLIAMENT REGARDING STEEL PRODUCTION.

(a)&(b): The data on crude steel production for the last three years and the current year are given below:-

| Year                                        | Production (in million tonnes)              |
|---------------------------------------------|---------------------------------------------|
| 2012-13                                     | 78.42                                       |
| 2013-14                                     | 81.69                                       |
| 2014-15                                     | 88.98                                       |
| 2015-16* (April-Nov.)                       | 59.75                                       |
| Source: Joint Plant Committee, *Provisional | Source: Joint Plant Committee, *Provisional |

The  above  table  shows  that  the  production  of  crude  steel  is  consistently increasing in the country.  Data released by the World Steel Association (WSA) on global crude steel production during January-October 2015 indicates that India has now become the 3 rd largest producer of crude steel in the world.

(c)&(d): Steel being a deregulated sector, the investment decisions are taken by the individual  companies/investors  based  on  commercial  considerations  and  market dynamics. The current crude steel capacity in the country is 110 Million Tonnes Per Annum (MTPA), which is envisaged to increase to 300 MTPA by the year 2025.  On an  average,  Rs.  6000 crores  is  required  for  setting  up  a steel  plant  of  one  million tonne.

- (e) Steel is the core sector of the economy.  Several sectors, which are part of 'Make in India' initiative, have strong linkages to steel.  The Government of India has taken the following steps to promote the domestic steel industry and enhance steel production:
- (i) Special  Purpose  Vehicle  (SPV)  framework  adopted  to  encourage  large capacity  green  field  projects  in  iron  ore  rich  States  of  Jharkhand,  Odisha, Chhattisgarh and Karnataka.
- (ii) Public  sector  units  have  undertaken  expansion  plans  to  increase  the  steel production capacity.  SAIL has undertaken modernization & expansion plan to enhance its crude steel production capacity from 12.8 MTPA to 21.4 MTPA. RINL  has  undertaken  expansion  and  modernization  of  its  capacity  from  3 MTPA to 7.3 MTPA.  NMDC has undertaken setting up of a new steel plant of 3 MTPA.
- (iii) Notified  the  Coal  Mines  (Special  Provisions)  Amendment  Act,  2015  on 30.03.2015 to streamline coal block allocations.
- (iv) Notified  the  Mines  and  Minerals  (Development  and  Regulation)  Amendment Act, 2015 on 27.03.2015 to streamline grant of mining leases and to improve raw material security.
- (v) Notified  Steel  and Steel  Product  (Quality  Control)  Order  dated 12.03.12  (as last amended on 04.12.14) for production and import of quality steel.

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