Mr Beni Prasad Verma union minister for steel said that India has now become the 4th largest producer of crude steel in the world in 2010 as against the 8th position in 2003.
Chairing the meeting of the Parliamentary Consultative Committee attached to his ministry, he said that India is expected to become the 2nd largest producer of crude steel in the world by 2015. The functioning of Steel Authority of India Limited was the agenda of the meeting.
Mr Verma has said that India also maintained its lead position as the world’s largest producer of direct reduced iron or sponge iron. He said, the steel sector contributes to nearly 2% of the GDP and employs over 500,000 people. The per capita steel consumption during the last six years has risen from 38 kilogram in 2005-06 to 55 kilogram in 2010-11.
He hoped that in the next five years, demand of steel is likely to grow at a higher annual average growth of over 10% as compared to the average annual growth of 8% achieved between 1991-92 and 2010-11.
Expressing concern about fast depleting iron ore resources, he said that Iron ore is a non-renewable natural resource, therefore, his ministry is of the view that it should be conserved for long term utilization of domestic steel industry. Our policy should accordingly, aim at value addition of iron ore within the country instead of exporting iron ore.
Informing the members, Mr Verma said, in order to increase production of steel in the country, SAIL and RINL are in the midst of massive expansion plan. The major thrust of the modernization and expansion plans is to adopt the best modern technology, which in addition to being cost effective should also be energy efficient and environment friendly. The Steel Minister informed that expanded capacity of Salem Steel Plant has already been commissioned. First Phase of the expansion plan of RINL is likely to be completed and commissioned soon.
The Steel Minister informed that for promotion of steel sector, recently, the following steps have been taken:
National Steel Policy 2005 has been reviewed and the process for drafting a National Steel Vision has been initiated
Five year strategy paper has been prepared for promotion of Steel sector in the country
A policy paper on R&D has also been prepared with special focus on beneficiation, coal ash reduction and promotion of production of high grade value added Steel in the country. SAIL has decided to earmark one percent of gross sales for promotion of R&D
New techno economic bench marks have been evolved on International pattern for improvement in performance of Steel PSUs.
