The steel industry in India has recorded an impressive growth in production and consumption of the steel during the first two quarters of the current financial year.
Addressing the Parliamentary Consultative committee, Mr Virbhadra Singh steel minister said that the steel industry in India recovered from the downturn due the timely action of the government. He said demand for steel saw a negative growth of 13% during October to December last year.
He said the demand for steel in the domestic market will continue to grow with an increased expenditure on infrastructure projects which will not only result in growth in steel consumption but will also provide a stable market for steel, particularly TMT bars, structural steel and other items of mass consumption. Recovery of Automobile Industry and Real Estate has also given new hope to the steel sector.
Mr Virbhadra Singh said that in view of the expected expansion in domestic demand for steel there is an urgent need to add to domestic capacity. RINL is already doubling its capacity from 3 million tonnes per annum to 6.3 million tonnes per annum at the cost of INR 12,200 crore.
NMDC also increasing its production capacity of Iron Ore from 30 million tonnes at present to 50 million tonnes. He said RINL has been consistently making profits since 2002-03 and has also attained techno economic production parameters that are among the best in the country. The Ministry has recently got the approval of the Cabinet for restructuring of Bird Group of Companies. RINL has been identified as strategic partner for acquiring controlling stakes in the Bird Group. The three companies in the Bird Group namely Orissa Mineral Development Company, Bisra Stone Lime Company and Eastern Investments Ltd to be subsidiaries of RINL which would be the holding company. Manganese Ore India Ltd with a turnover of INR 1,284.84 crore is placed among the top five manganese ore/alloy/value added products producing companies in the world and has enormous potential. With a view to enhance the total production potential, MOIL is currently undertaking a number of mine deepening and shaft sinking schemes at its various mines. With these measures, MOIL would be in a position to consolidate its position further.
Members wanted to know the details of the expansion plan of the RINL and future plans of MOIL. They emphasized that the expansion plan should be implemented in a time bound manner and any cost escalation should be avoided. They also wanted the availability of steel in rural and remote areas should be augmented by expanding the dealership network of the Public Sector Steel companies. Some of the members, while appreciating the Corporate Social Responsibility work of the Steel PSUs asked them to undertake educative programs to wean away people from social vices like liquor. Members also expressed their disappointment on delay in granting mining lease for iron ore and allotment of coal blocks to PSU steel companies. They urged the government to take some urgent steps to resolve the issue.
