Question : PERFORMANCE OF STEEL SECTOR



(a) whether the Government have recently reviewed the performance of public and private steel sector ;

(b) if so, the findings thereof;

(c) the details of cess collected under the Steel Development Fund and funds distributed therefrom; and

(d) the details of representations received from the main steel producers in this regard and the action taken thereon?

Answer given by the minister


MINISTER OF STATE FOR STEEL (SHRI BRAJA KISHORE TRIPATHY)

(a) & (b): Government reviews the performance of the public and private sector on a continuing basis. The trend of finished (carbon) steel production in the steel production in the public and private sector during the last 4 years was as under:-

 (Quantity in million tonnes)
YEAR PUBLIC SECTOR PRIVATE SECTOR TOTAL
1996-97 8.53(37.5%) 14.19(62.5%) 22.72 1997-98 8.54(36.5%) 14.83(53.5%) 23.37 1998-99 7.64(33.2%) 16.16(66.8%) 23.82 1999-2000 8.52(31.9%) 18.19(68.1%) 26.71
The percentage share of private sector in the production of finished (carbon) steel has increased rapidly since 1996-97 due to the commissioning of steel production capacity in the private sector as a result of liberalisation of the steel sector. This trend has continued in 1999-2000 also.

(c) The details of the cess collected under Steel Development Fund and fund distributed there from as on 31.3.99 are as under:-

Figures in crores
Particulars	SAIL	IISCO	TISCO	RINL
Cess Collected 3506.17 45.88 1013.79 27.03

Repayment of loan 3113.62 0.00 610.01 15.00
Interest on Loan 1609.49 0.00 302.29 1.00 Total Receipts = Rs.10404.94 crores Disbursement to Main producers

Figures in crores Particulars SAIL IISCO TISCO RINL
Loans 7873.98 44.68 1533.27 15.00 Total disbursements = Rs.10,325.90 crores


(d) A representation has been received from one of the main producers suggesting for restricting the use of the funds collected through cess to the contributors of the cess only. The matter also came up for hearing before the High Court Calcutta who have upheld these views.