Lok Sabha Question No. 2326 (UNSTARRED), answered on 2016-08-01
Subject: Performance of Steel PSU
Ministry: STEEL
Asked by: KANWAR SINGH TANWAR

## LOK SABHA UNSTARRED QUESTION NO.2326 FOR ANSWER ON 01/08/2016

## PERFORMANCE OF STEEL PSU

## 2326.  SHRI KANWAR SINGH TANWAR:

Will the Minister of STEEL be pleased to state:

(a) whether the Government has reviewed the performance of the public sector steel companies including Steel Authority of India Limited (SAIL) in the country;

(b) if so, the details and the outcome thereof including profit earned/loss incurred by the said companies during each of the last three years, PSU-wise;

(c) whether the recession in steel industry has affected the performance of the steel companies in the country;

- (d) if so, the details thereof; and
- (e) the corrective steps taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a)&(b):  There  are  two  Public  Sector  Steel  manufacturing  companies  in  India  namely Steel  Authority  of  India  Limited  (SAIL)  and  Rashtriya  Ispat  Nigam  Limited  (RINL). Ministry of Steel regularly reviews the performance of its Public Sector Steel companies. In these meetings the issues of Central Public Sector Enterprises (CPSE) pending to be taken up with the other Ministries / Departments as also with other State Governments are  identified  /  flagged  and  pursued.  The  details  of  the  profit  earned  /  loss  incurred during each of the last three years is as under:-

(Rs. in Crore)

| Name of the PSU   |   2013-14 |   2014-15 | 2015-16   |
|-------------------|-----------|-----------|-----------|
| SAIL              |      2616 |      2093 | (-) 4137  |
| RINL              |       367 |        62 | (-) 1421  |

(c)&(d):  The  Indian  steel  industry  is  currently  passing  through  a  severe  downturn. Globally, demand slowdown and overcapacity have resulted  in  major  steel  producing countries adopting predatory pricing strategy and selling their products in India at prices often  lower  than  their  cost  of  production.  Consequently,  domestic  producers  have considerably reduced prices eroding their profit margin.

(e) In order to alleviate the problems faced by domestic steel industry the Government of India has taken various measures. These include:-

- (i) Imposed Minimum Import Price (MIP) on 173 steel tariff lines 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.
- (ii) 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.
- (iii) 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%.
- (iv) Amended the Steel & Steel Products (Quality Control) Order, 2012, in December, 2015 to ensure that only quality steel is produced/imported in India.
- (v) Levied the Anti-Dumping Duty for five years on imports of certain variety of hotrolled flat products of stainless steel from China ($ 309 per tonne), Korea ($ 180 per tonne) and Malaysia ($ 316 per tonne).
- (vi) 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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