THE MINISTER OF STATE IN THE MINISTRY OF STEEL( SHRI JITIN PRASADA )
(a) The value of total sale made by Steel Authority of India Limited (SAIL) during
the last three years is as follows:
Year Amt.(Rs. in Crore)
2004-05 31805
2005-06 32280
2006-07 39189
9M 2007-08 30026
(b)&(c): Yes, Sir. The prices of different raw materials procured by SAIL have increased
significantly in the range of 53.6% to 349.5% between the period 2004-05 and 2008-09. The main
reasons for the increase in raw material prices are mismatch between demand and supply, upward
trend in international prices, increase in the transportation cost etc. The details of price
increase of the raw materials, procured by SAIL is Annexed.
(d) The government has taken the following measures to stabilize the prices of steel making
raw materials in the country:-
(i) The import duties on steel making inputs have been reduced over the years and also exempted
in case of coking coal. In case of iron ore it has been reduced to 2%.
(ii) In the Union Budget 2008-09, the import duty on melting scrap has been reduced from 5% to NIL.
(iii) In order to ease the supply of iron ore to domestic steel producers the Government has
imposed an export duty at the rate of Rs.300 per tonne on export of all varieties of iron ore
lumps. Export duty has also been imposed at the rate of Rs.300 per tonne on export of iron ore
fines with more than 62% Fe content and at the rate of Rs.50 per tonne on export of iron ore
fines with less than 62% Fe content.
