Moneycontrol
May 29, 2017 04:02 PM IST | Source: PTI

Trade remedial measures helped domestic steel output rise

The Indian steel sector is a growth story, ISA Secretary General and Executive Head Sanak Mishra told PTI.

Trade remedial measures helped domestic steel output rise

Domestic crude steel production will continue to rise on several trade remedial measures taken by the government, Indian Steel Association (ISA) has said.

The Indian steel sector is a growth story, ISA Secretary General and Executive Head Sanak Mishra told PTI.

"...in the past few years, a lot of new steel capacity has been commissioned and a lot more is under commissioning that means that the potential to produce the capability to produce is there," he said.

He was replying to a question on India's crude steel production during the first four months of 2017.

According to the latest report of global body World Steel Association, there is a difference of less than 2 million tonne between the amount of steel produced by India and Japan during the first four months of 2017.

India has produced 33.159 MT and Japan -- the world's second largest producer of the metal -- produced 34.982 MT of steel.

"India will overtake Japan by end of 2017 to become second largest producer (of steel) I have been saying it for the last few years...," Mishra said.

Another reason he said was that the government has taken several trade remedial measures to support the domestic steel industry in the form of increased basic customs duty, safeguard duty which is called MIP, antidumping on hot-rolled products and cold-rolled products. The government has been very supportive to the industry.

"Indian steel industry is a growth story as compared to many other steel industries in the world because our consumption is rising...we will grow about 6 per cent current year in terms of consumption," he said.

Explaining the reasons, the industry veteran said, "per capita consumption will rise for three reasons. One, the political stability, in last three years we have had a very stable government. Second, emphasise of the government is strongly on infrastructure, building roads and highways, railways, logistics which will give better quality of life to the ordinary people and for that steel would be required for all this."

India aims to take its steel production capacity to 300 MT by 2030-31 at a cost of Rs 10 lakh crore besides taking the per capita steel consumption to 158 kg, Steel Minister Chaudhary Birender Singh while addressing the media on three years initiatives and achievements of his ministry had said.

During the last three years, per capita consumption has increased to 65 kg from 59.3 kg, the minister had said. The global per capita consumption at present is 204 kg.

The budget allocation also for infra and construction projects this year by the government was much more than the previous year. And thirdly, the government support. The National Steel Policy and guidelines for domestic steel should be used for projects in the country. These are the guidelines for the growth story of India," Mishra said.

He also said, today there is new technology, equipment, automation and process control which were not there earlier. So, India is in position to compete.
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