PRODUCTION OF CRUDE STEEL INCREASES IN 2009-10

Current Affairs Industry

The production of crude steel in  India has increased in the year 2009-10 in comparison to the year 2008-09. However, percentage of growth of steel has declined marginally in the year 2007-08 and 2008-09 in comparison to the year 2006-07. Following is the details of production of crude steel in the country: -

the production of steel depends upon inter play of various complex factors such as production capacity, capacity utilization, commercial viability, availability and cost of raw materials and the demand-supply situation in the global steel market. Moreover, the percentage growth is also a relative factor of the base line, which is steadily increasing on year by year basis.

low level of awareness on the varied benefits of using steel and the perception of steel as an expensive item amongst village people are the main reasons for steel consumption not picking up in rural areas of the country. Additionally, there are also related issues like inadequacy of infrastructure, which prevents selling of steel in villages/rural market, to be cost effective. To understand the pattern and potential of steel consumption in the Indian rural market, the Government has initiated a study on assessment of steel demand in the rural areas of the country.

The Minister said, the study would cover 300 districts, 1500 villages, 4500 Manufacturers and 8000 Retailers, spread over all the 35 States and Union Territories of the country. The objective of the study is to assess trends in consumption pattern of different items of steel in the rural areas, by examining both a) the demand side i.e. Household and Community/Institutional uses; and b) the supply side i.e. Manufacturers, Retailers. Additionally, the study would examine the potential for increasing the level of steel consumption, the nature of shifts and the extent of threat of substitution from competing materials.