The Indian steel scenario in 2001

The standards are maintained

India continued to be the tenth largest steel producer in the world producing nearly 30 million tonnes of steel. With a capital base of Rs 90,000 crore it gives direct employment to about 5 lakh and indirect employment to 1.5 million people. During the year 2001 it has been a world leader in ship re-cycling industry. During January to November 2001 the production of finished steel and pig iron has been provisionally estimated at 26.63 million tonnes and 3.63 million tonnes respectively. During this period availability of finished steel was 23.87 million tonnes and apparent consumption was 23.27 million tonnes. The export of iron and steel products was about 2.71 million tonnes. 

New initiatives during the year

The Steel Ministry during the year 2001 had discussion with the leaders of the steel sector and concerned ministries to frame a National Steel Policy to give the industry a national perspective and to make the steel sector vibrant. It has formulated a National Campaign Committee to penetrate rural markets with an aim to triple steel demand by the year 2020. It has also taken steps to discourage import of seconds and defective steel material. It aims at making eco-friendly steel scaffolding compulsory in all construction activities in the metros and popularise steel truck bodies to achieve higher domestic demand for steel. The Ministry has launched a campaign to popularise steel bins and silos among rural farming community to preserve food grains. SAIL's salem steel plant has installed the steel roofing at Mumbai station and barricades at the bathing tank at Tirupathi by stainless steel bars. SAIL has taken many steps for promoting new and diverse stainless steel applications in the country.

The vision: reach out more to end-users

The vision 2020 brought out by the Ministry last year aims at tripling steel demand in the country by the year 2020. All attempts have been made to improve investment in the infrastructure sector to increase the demand. Stainless steel as an architecture material has been popular in southern cities. Delhi is gradually responding to applications like column cladding and handrails. The prospect of stainless steel reinforcement bar for concrete is very good especially in the coastal areas. Rail Coach Factory (RCH), Kapurthala is fabricating all-stainelss steel coaches travelling long distances. The Delhi Metro Rail Corporation has specified stainless steel EMU coaches and similar efforrts are also on for Bangalore and Mumbai. Indian Railways are using at present 6 thousand wagons made of stainless steel to transport coal. Other promising sectors are stainless steel domestic LPG cylinders overhead water storage tank and building and construction. All these prospective end-use sectors will contribute to the future growth rate of steel use in the country.

A silent revolution is on.. 

Steel industry in India has witnessed a silent revolution during the post liberation period.. As a result of various positive and well-meaning initiatives taken by the Ministry and efforts by the plant managements, the industry has been witnessing a spectacular growth. As many as 19 new units with an aggregate capacity of 13.00 million tonnes and an investment of Rs 30,000 crore have been sanctioned by financial institutions after liberalization. Of these, 8 projects have been fully commissioned and 7 are in operation and others under various stages of implementation.

SAIL: moving back to rails

The Ministry has successfully monitored the implementation of the business and financial restructuring package of the Steel Authority of India Ltd (SAIL), a landmark decision in the history of Indian PSU restructuring. SAIL has accomplished some of the milestones. SAIL introduced a new VRS scheme for its employees in February 2001. Under the scheme 6,510 persons have opted for voluntary retirement. On Government guarantee given in the restructuring package SAIL has raised Rs 315 crore in 2000-01 and Rs 185 crore in the first eight months of this fiscal. SAIL has initiated steps for disinvestment of remaining non-core and non-profit making units. 

Policy edge

Empowered Committee, constituted by the Ministry of Steel has approved specific 20 research project proposals. The total cost of these projects is Rs149.30 crore. The research areas cover mining and benification of minerals, improvement of properties of coal, reduction in energy consumption, reduction of refractory consumption, improvement in productivity, utilisation and treatment of wastes, control of pollution, improvement of quality and development of human resources. All the projects are under implementation. Hundred per cent foreign direct investment (FDI) through automatic route in the iron and steel sector has been allowed by the Government during the year. To provide raw materials and transport linkages to sponge iron, pig iron, steel and coke oven units, Linkage Committee met in November 2001 and assured supply of main raw materials and transport linkages to iron and steel units in the country.

Inter-ministerial scene

The Steel Minister met the Finance Minister and the Prime Minister to apprise them of the current status of the iron and steel sector and suggest certain remedial measures to revive this core sector of the economy. The suggestions related mainly to customs and excise duty structure for iron and steel and its raw materials. The Ministry of Steel has emphasized on the importance of solid waste management. About 30 per cent of solid waste generated in the steel industry in the country is being economically used. Steel Ministry is trying to pursue the policy of 'Zero Waste Generation'.

Teething matters

The project coordination group (PCG) set up during 2000 met in March 2001. Various inputs were received on problems and issues relating to the units. Personal interface also took place between the entrepreneurs and members of the PCG. Various issues relating to demand generation, duty matters, exim policy and rising cost of inputs and problems of on-going iron and steel projects were discussed.

We shall overcome

The Steel Ministry has initiated action on anti-dumping duties levied by the US which has stood in the way of export. The Ministries of Commerce and External Affairs are fighting out the cases. The companies have initiated action to find alternative markets. 

The jewel shines

During the year, Visakhapatnam Steel Plant (VSP), the only shore based integrated Steel Plant in India has achieved the highest turn over and sale. It has improved its performance in all spheres. It has bagged SAIL Chairman's silver plaque for no fatal accident and was awarded certificate of merit for National Energy Conservation Award 2001. 

Steaming ahead

During November 2001, the Steel Minister dedicated to the nation 2.3 lakh tonne pig iron project set up by Kudremukh Iron and Steel Company Ltd (KISCO). The project is a down steam diversification for KIOCL and aims at producing high grade pig iron with low sulphur and low phosphorus content. Part of pig iron produced will be utilised for production of doctile iron spun pipes. 

Together we stand

A sharp rise in price of vital inputs like coal and power and rise in transport costs coupled with slowdown in demand and increased availability through cheap import have severely eroded the profitability of the industry. Lowering of tariff barriers also exposed the industry to vagaries of international price fluctuations. To overcome these difficulties, the Government has taken steps to support the industry in the areas of reduction of cost of input materials, railway freight for movement of raw materials and finished steel.