Lok Sabha Question No. 15 (STARRED), answered on 2016-07-18
Subject: Steel Production
Ministry: STEEL
Asked by: SAKSHI SWAMI MAHARAJ, NARANBHAI KACHHADIA

THE MINISTER OF STEEL

## LOK SABHA STARRED QUESTION NO.*15

FOR ANSWER ON 18/07/2016

## STEEL PRODUCTION

## *15. DR. SWAMI SAKSHIJI MAHARAJ: SHRI NARANBHAI KACHHADIYA:

- Will the Minister of STEEL be pleased to state: (a) the total quantum of steel produced by various public sector steel plants vis-a-vis targets set and percentage growth rate of steel production during each of the last three years; (b) the  percentage  of  total  demand  for  steel  fulfilled/met  by  the  Steel  Authority  of India Limited (SAIL) during the above period; (c) the details of problems being faced by SAIL including the funds crunch in view of the stiff competition posed by the private sector steel companies; (d) the  status  of  New  Steel  Policy  and  expansion/modernisation  of  steel  plants  of SAIL; and (e) the corrective steps taken by the Government to address the problems faced by the Steel Sector?

## ANSWER

(SHRI CHAUDHARY BIRENDER SINGH)

(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.*15 FOR ANSWER ON 18/07/2016 TABLED BY DR. SWAMI SAKSHIJI MAHARAJ AND SHRI NARANBHAI KACHHADIYA, MEMBERS OF PARLIAMENT REGARDING STEEL PRODUCTION.

- (a) Total quantity of crude steel produced by Steel Authority of India Limited (SAIL) and Rashtriya  Ispat  Nigam  Limited  (RINL)  vis-a-vis  target  set  and  percentage  growth  rate  of steel production during each of the last three years is given below:

## Steel Authority of India Limited (SAIL)

|                             |   2013-14 |   2014-15 |   2015-16 |
|-----------------------------|-----------|-----------|-----------|
| Target (Million Tonnes)     |     14    |     15    |     15.5  |
| Production (Million Tonnes) |     13.6  |     13.9  |     14.3  |
| %growth over last year      |      1.49 |      2.21 |      2.87 |

## Rashtriya Ispat Nigam Limited (RINL)

|                             |   2013-14 |   2014-15 |   2015-16 |
|-----------------------------|-----------|-----------|-----------|
| Target (Million Tonnes)     |      3.66 |      4.36 |      4.21 |
| Production (Million Tonnes) |      3.2  |      3.3  |      3.64 |
| %growth over last year      |      4.23 |      3.13 |     10.3  |

- (b) The  percentage  of  total  demand  of  steel  met  by  Steel  Authority  of  India  Limited (SAIL) during last three years was as under:

Quantity in '000 tonnes

| Year    |   Total consumption of steel in the country* |   Supply of finished steel by SAIL | % share of SAIL in total demand   |
|---------|----------------------------------------------|------------------------------------|-----------------------------------|
| 2013-14 |                                        67994 |                              10078 | 14.8%                             |
| 2014-15 |                                        70236 |                               9671 | 13.8%                             |
| 2015-16 |                                        72703 |                              10122 | 13.9%                             |

* Source: Joint Plant Committee

- (c) During the period 2014-15 and 2015-16, there has been an unprecedented increase in imports of steel by 75% and 27% respectively over the corresponding period, which has resulted in sharp decline in domestic steel prices. Declining prices have led to lower sales realization for domestic steel producers, including SAIL. The fall in prices have led to cash deficit  in  the  company, which is being met by SAIL by way of borrowings from banks and debt market.
- (d) Presently, the National Steel Policy, 2005 is in force. The new National Steel Policy is at conceptual stage.

Steel Authority of India Ltd.(SAIL) has undertaken modernization and expansion of its steel plants at an indicative cost of Rs 61,870 crore. All major facilities under modernization & expansion plan except Bhilai Steel Plant have been completed and are under stabilization.

- (e) The  Indian  steel  industry  is  currently  passing  through  a  severe  downturn  due  to dumping  of  products  and  predatory  pricing  by  global  steel  players  with  excess  capacity. Government  has  taken  various  corrective  steps  to  address  the  problems  faced  by  the domestic  steel  sector  and  to  provide  level  playing  field  to  the  domestic  steel  producers. These include:
- (i) In February, 2016, Government imposed Minimum Import Price (MIP) on 173 steel products.
- (ii) In June, 2015, an Anti-Dumping Duty was levied for five years on imports of certain variety of hot-rolled flat products of stainless steel.
- (iii) In  September, 2015, a provisional safeguard duty of 20%  was  imposed on certain hot-rolled flat steel products.
- (iv) Government hiked import duty on various finished and semi-finished steel products.

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