REVIVAL OF CLOSED/SICK STEEL PLANTS

The State-wise distribution of Main and Major steel producer plants and small-to-medium scale steel plants is given in Annexure-I and II respectively.

Crude steel production capacity of the country is estimated to reach 124 milliontonnes by the end of the current Five Year Plan.

The number of steel plants in working condition is given

Steel is a de-regulated sector; therefore, no steel unit is required to furnish such details to the Ministry of Steel. However, in a de-regulated, liberalized economy, decisions related to production are taken essentiality by the steel producing units. The Government in such a market economy has the role of a facilitator only – it provides the overall policy environment to promote growth of industry. In order to promote the domestic steel industry, the Government has framed the National Steel Policy, 2005 and constituted an Inter-Ministerial Group (IMG), under the chairmanship of Secretary (Steel) in 2007, to monitor and coordinate the issues concerning major steel investments in the country related to infrastructure, raw material supply, environmental clearance and other resource constraints.

Annexure-I

Annexure-II

OPENING OF SALE DEPOTS IN RURAL AREAS

In the National Steel Policy 2005, a target has been kept for increasing the per capita steel consumption in rural areas from 2 Kg per capita per annum to 4 Kg per capita per annum by 2019-20 through active focus on opening of new rural sales outlets along with promotional efforts to increase demand. As on 31.1.2010, the Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL), the public sectors undertakings of the Ministry of Steel have appointed 1963 dealers and 80 dealers respectively.

GREENFIELD PROJECTS

During the year 2008, based on the progress achieved by the steel investment projects and based on the projections furnished by the companies, the steel production capacity of India was projected as 124 million tonnes. However, on account of factor such as, global economic slowdown in later part of 2008, delay in land acquisition, allocation of raw material resources, law and order problems etc; there has been some delay in the progress of certain projects. A meeting with major private sector steel producers will be held shortly in the Ministry of Steel, to review the current status of each major private sector projects. Therefore, the revised projection, on year–wise basis, will be furnished by the Ministry of Steel after a fresh review and further assessment

FOREIGN DIRECT INVESTMENT IN STEEL SECTOR

The Foreign Direct Investment in steel (ferrous) for the past three financial years and the current year (April – December) is given in the table below: -

(Amount in Million)

(Source: Department of Industrial Policy & Promotion)

Employment opportunities in steel industry

Government engaged Indian Institute of Metal (IIM), Kolkata in March 2007 for a comprehensive study on technical manpower requirement at different levels in the steel industry. The report has been submitted by IIM, Kolkata to Ministry of Steel in March 2008 which inter-alia covers discipline-wise requirement of technical manpower needed by the iron and steel industry by the year 2020, including shortages thereof

Investment in Steel Industry

Steel is a deregulated sector and the Government does not directly make investments in the steel industry.  However, a Gross Budgetary Support (GBS) of Rs.118.00 crore has been provided for promotion of Research and Development (R&D) in the Iron and Steel Sector during the Eleventh Five Year Plan.  Government implements various fiscal measures in the form of duties and taxes, from time to time with an overall view to regulate economy and boost the industry.  However, on the aftermath of global economic slowdown the following economic stimulus measures were initiated by the Government during October 2008 to February 2009:

(i)                   Export Duty on steel items (except melting scrap) withdrawn with effect from 31.10.2008;

(ii)                 Duty Entitled Pass Book (DEPB) on steel items restored with effect from 14.11.2008;

(iii)                Import Duty on iron and non-alloy steel items re-imposed at 5% with effect from 18.11.2008;

(iv)               Central Value Added Tax (CENVAT) on steel items reduced to 8% with effect from 24.02.2009; and

(v)                 Countervailing duty (CVD) on Thermo Mechanically Treated (TMT) bars and structuralswere reintroduced with effect from 02.01.2009.

This information was given by the Minister of State for Steel Shri A.Sai Prathap in a written reply in the Lok Sabha