Lok Sabha Question No. 1183 (UNSTARRED), answered on 2016-05-02
Subject: Modernisation of Steel Plants
Ministry: STEEL
Asked by: J. JAYASINGH THIYAGARAJ NATTERJEE

## LOK SABHA UNSTARRED QUESTION NO.1183

FOR ANSWER ON 02/05/2016

## MODERNISATION OF STEEL PLANTS

1183.  SHRI J.J.T. NATTERJEE:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government proposes or has any proposal for modernisation and expansion of public sector steel plants in the country;
- (b) if so, the details thereof along with the steps taken/being taken in this regard, plant-wise;
- (c) whether the Government has any specific plans/ideas to rejuvenate the steel sector in the country; and
- (d) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF STEEL AND MINES

(SHRI VISHNU DEO SAI)

(a)&(b): Steel is a deregulated sector and the decisions regarding modernisation and expansion  of  public  sector  steel  plants  are  taken  by  the  respective  public  sector companies,  based  on  commercial  considerations  and  market  dynamics.  Steel Authority of India Ltd. (SAIL) and Rashtriya Ispat Nigam Ltd. (RINL) have undertaken modernization and expansion programme funded from their own sources. Modernization  and  expansion  of  Rourkela,  IISCO  Burnpur,  Durgapur,  Bokaro  & Salem  steel  plants  of  SAIL  and  Vizag  Steel  Plant  of  RINL  have  been  completed. Modernization and expansion of Bhilai steel plant of SAIL is likely to be completed by December,  2016.  RINL  has  also  undertaken  Modernisation  of  the  existing  major process units of Vizag Steel Plant.

(c)&(d):  The  Government  has  taken  the  following  steps  to  rejuvenate  the  steel industry:-

- (i) For  ensuring  raw  material  availability,  the  Government  had  issued  MMDR Amendment Act, 2015 & rules there under which provides for allocation of iron ore to 'specified end use'.  As per the provisions of the Act, State governments have  also  to  initiate  and  expedite  the  process  of  auction  to  maintain  the sufficient availability of iron ore at cheaper prices for the steel sector.
- (ii) Issued the Steel & Steel Products (Quality Control) Orders in March, 2012 and December,  2015  to  ensure  that  only  quality  steel  is  produced  /  imported  in India.

- (iii) For reducing the stress in the steel sector, RBI has extended 5:25 scheme in July,  2015,  whereby  longer  amortization  period  for  loans  to  projects  in infrastructure  and  core  industries  sectors,  say  25  years,  based  on  the economic  life  or  concession  period  of  the  project,  with  periodic  re-financing, say every 5 years, is allowed.
- (iv) Imposed Minimum Import Price (MIP) on 173 steel products in order to provide a level playing field to domestic producers against the injury caused as evident from the decline in margins of the producers.
- (v) Increased the peak rate of basic customs duty on both flat and non-flat steel to 15% from 10% in the Union Budget 2015-16.
- (vi) Increased the import duty on ingots & billets, alloy steel (flat & long), stainless steel (long) and non-alloy long products to 7.5% (from 5%) and non-alloy and other alloy flat products to 10% (from 7.5%). This has been further revised in August, 2015. Currently, import duty on flat  steel is  applicable  at 12.5%,  on long steel products at 10% and on semi-finished steel products at 10%.
- (vii) Levied  the  Anti-Dumping  Duty  for  five  years  on  imports  of certain  variety  of hot-rolled flat products of stainless steel from China ($ 309 per tonne), Korea ($ 180 per tonne) and Malaysia ($ 316 per tonne).
- (viii) Imposed the Safeguard Duty of 20% in March, 2016 on hot-rolled flat products of non-alloy and other alloy steel, in coils of width of 600 mm or more.

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