ET Bureau reported that India's steel industry is battling a demand slowdown and raw material issues but Indian steel minister Mr Beni Prasad Verma struck a sanguine note when he told Ms Meera Mohanty and Mr Vinay Pandey that the industry is on track to meet the production target for 2020. Excerpts:
Q - Have issues such as environment clearance and land acquisition brought the resources sector to a standstill?
A - You can say it is moving slowly but you can't say nothing is happening. Our steel production target of 200 million-tonne by 2020 will be met. Domestic consumption is growing at 10% and production, too, is growing at about the same rate. The Kobe and SAIL joint venture is in its final stage while the SAIL POSCO agreement for a plant in Bokaro will also be signed soon. In the private sector, JSW has completed expansion and ArcelorMittal is setting up a plant.
Q - Where will ArcelorMittal's plant come up? The company is facing a land problem in Jharkhand. Will it take a while before it gets lease for iron ore in Karnataka?
A - Yes, I guess their project will be delayed . They have not made any representations to us for any help. They are going ahead on their own. They have never come to meet us, at least not as long as I have been here.
Q - What will be done for steel makers that are depending on the KG-D 6 basin for gas, now that it has been decided steel is not a priority sector? And how does it impact the ministry's plans for Jagdishpur?
A - The ministry asked for its share of gas but the demand was not accepted. Imported gas is expensive and what we are producing in India is falling short. We have decided to set up a gas-based power plant at Jagdishpur, which will put it in the priority category. We have already sent our proposal to the power ministry for a 1,000 MW gas based plant. Primary steel will not be produced, but we will make finished products from pellets from the Durgapur Steel Plant.
Q - Where does SAIL stand with its expansion plans and iron-ore lease renewals?
A - We have got clearance for a lease in Chidiya mine, which holds 1.8 billion tonne reserves. SAIL has no shortage of iron ore mines. Yes, its expansion plans have been delayed, but it will all be completed by 2012-13. We expect to pick up pace in production after that. SAIL will be setting up a plant in Afghanistan and it has already bid for the Hajigak iron ore asset as lead partner of a consortium. It is also setting up a plant in Indonesia and is looking at Australia too.
(Sourced from www.economictimes.indiatimes.com)
