Lok Sabha Question No. 216 (UNSTARRED), answered on 2016-04-25
Subject: Steel Production
Ministry: STEEL
Asked by: SANJAY SHAMRAO DHOTRE, BHARTRUHARI MAHTAB

## 216.

FOR ANSWER ON 25/04/2016

## STEEL PRODUCTION

- SHRI SANJAY DHOTRE: SHRI BHARTRUHARI MAHTAB:

Will the Minister of STEEL be pleased to state:

- (a) whether  there  is  a  gap  between  production  capacity  of  crude  steel  and  its  actual production by the Public and Private Sector Companies in the country during each of the last three years and the current year and if so, the details thereof, company-wise;
- (b) the number of Special Purpose Vehicles (SPVs) formed by the Government to bridge the said gap, SPV-wise;
- (c) the  details  of  the  investments  made  by  the  Public/Private  Sector  Companies  for  their expansion and modernisation across the country to participate in the Make-in-India Programme of the Government since its inception; and
- (d) whether the Government proposes relaxation in norms for setting up of new steel plants in order to increase steel companies' participation in the said programme and if so, the details thereof?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF                               (SHRI VISHNU DEO SAI) STEEL AND MINES

- (a) Yes, Madam.  There is a gap between production capacity of crude steel and its actual production by the Public and the Private Sector Steel Companies. The current financial year has just begun. Therefore, details for four years from 2012-13 to 2015-16 are given at Annexure-I .
- (b) Based on the decision taken in the meeting of High Level Committee on Manufacturing held on 09.07.2013 to achieve the ambitious target of 300 Million Tonne Per Annum (MTPA) steel production capacity by 2025, a concept of Special Purpose Vehicle (SPV) was enunciated. Four  mineral  rich  States,  namely,  Chhattisgarh,  Odisha,  Karnataka  and  Jharkhand  were identified for setting up of Integrated Steel Plant through the SPV route. So far, Memorandum of Understanding  (MoU)  has  been  signed  with  the  State  Governments  of  Jharkhand  and Chhattisgarh. The greenfield integrated steel projects in Jharkhand and Chhattisgarh will be of the capacity of 3+3 or 4+2 MTPA capacity range, each.
- (c) Steel being a deregulated sector, investment, including under Make-in-India programme both  for  the  fresh  or  for  the  expansion  and  modernisation,  is  made  by  prospective  investors based on various factors including commercial consideration and market dynamics. Among the Public sector, SAIL has undertaken expansion & modernisation of its six steel plants at a total cost of Rs. 72,134 crore. RINL had undertaken expansion & modernisation of Vizag Steel Plant at a total cost of Rs. 12,291 crore. The Expansion & Modernisation of Salem, IISCO, Rourkela, Durgapur  and  Bokaro  Steel  Plants  of  SAIL  are  completed  and  that  of  Bhilai  Steel  Plant  is scheduled for completion by December, 2016. The expansion & modernisation of Vizag Steel Plant of RINL is completed. Further, RINL has also taken up modernisation and expansion of Vizag Steel Plant at a cost of Rs. 3600 crores to increase the capacity from 6.3 to 7.3 MTPA. NMDC is setting up a greenfield 3.0 MTPA integrated steel plant at Nagarnar.
- (d) Steel is deregulated industry and no license is required to make investment to set up a new steel plant, except for the statutory requirements related to land acquisition, environmental and  forest  clearance,  water  use,  etc.  The  decisions  in  regards  to  investment  in  the  steel capacities  are  based  on  various  factors  including  commercial  consideration  and  market dynamics.

********

Annexure -I referred to in Part (a) of Lok Sabha Unstarred Question No. 216 due for answer on 25/04/2016 PRODUCTION OF CRUDE/LIQUID STEEL

('000 tonnes)

|                                      | 2012-13                        | 2012-13                        | 2012-13                        | 2013-14                        | 2013-14                        | 2013-14                        | 2014-15                        | 2014-15                        | 2014-15                        | 2015-16*                       | 2015-16*                       | 2015-16*                       |
|--------------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|
| PRO D U C E R                        | Working Capacity               | Production                     | % Utilisation                  | Working Capacity               | Production                     | % Utilisation                  | Working Capacity               | Production                     | % Utilisation                  | Working Capacity               | Production                     | % Utilisation                  |
| S A I L                              | 13019                          | 13411                          | 103%                           | 13019                          | 13575                          | 104%                           | 17519                          | 13909                          | 79%                            | 17519                          | 14279                          | 82%                            |
| R I N L                              | 2910                           | 3071                           | 106%                           | 2910                           | 3202                           | 110%                           | 2910                           | 3296                           | 113%                           | 6300                           | 3640                           | 58%                            |
| TOTAL : (Public Sector)              | 15929                          | 16482                          | 103%                           | 15929                          | 16777                          | 105%                           | 20429                          | 17205                          | 84%                            | 23819                          | 17919                          | 75%                            |
| (Public Sector) PRIVATE SECTOR       | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR | (Public Sector) PRIVATE SECTOR |
| Tata Steel Ltd.                      | 9600                           | 8130                           | 85%                            | 9600                           | 9155                           | 95%                            | 9600                           | 9331                           | 97%                            | 9600                           | 9959                           | 104%                           |
| Essar Steel Ltd.                     | 8540                           | 4163                           | 49%                            | 8540                           | 3245                           | 38%                            | 8540                           | 2854                           | 33%                            | 10000                          | 3685                           | 37%                            |
| JSW Steel Ltd.                       | 14600                          | 11230                          | 77%                            | 14600                          | 12227                          | 84%                            | 14600                          | 13136                          | 90%                            | 16600                          | 12624                          | 76%                            |
| JSPL                                 | 2400                           | 3031                           | 126%                           | 2400                           | 2836                           | 118%                           | 4000                           | 3557                           | 89%                            | 4000                           | 3175                           | 79%                            |
| Other E A F Units/Corex- BOF/MBF-EOF | 12010                          | 9695                           | 81%                            | 14697                          | 9874                           | 67%                            | 15888                          | 14613                          | 92%                            | 17388                          | 14469                          | 83%                            |
| IF Units                             | 33945                          | 25685                          | 76%                            | 36494                          | 27579                          | 76%                            | 36794                          | 28283                          | 77%                            | 36794                          | 27945                          | 76%                            |
| TOTAL : (Private Sector)             | 81095                          | 61934                          | 76%                            | 86331                          | 64916                          | 75%                            | 89422                          | 71774                          | 80%                            | 94382                          | 71857                          | 76%                            |
| GRAND TOTAL :                        | 97024                          | 78416                          | 81%                            | 102260                         | 81693                          | 80%                            | 109851                         | 88979                          | 81%                            | 118201                         | 89776                          | 76%                            |

Source: JPC, *provisional

********