Question : Production and Import of Steel

(a) whether it is a fact that the steel is being imported despite huge production in the country and if so, the details thereof along with the types of steel imported;
(b) the reasons for not producing such types of steel in the country and the reaction of the Government thereto;
(c) the details of the trend and amount of steel imported in the country during the last three years and the current year;
(d) whether the trend of fall in the indigenous steel production has been seen during the said period and if so, the reasons therefor;
(e) whether it is true that the import of cheap steel from various countries including China has badly affected the indigenous steel industry and if so, whether
the Government proposes to increase import duty on the steel and if so, the details thereof and the time by which it is likely to be done; and
(f) the other steps taken/proposed to be taken by the Government to protect/promote the indigenous steel industry and to increase the production?

THE MINISTER OF STEEL (SHRI DHARMENDRA PRADHAN)

(a)&(b): Yes, Sir. During the period 2018-19, finished steel import stood at 7.83 million tonnes, an increase of 4.7% in comparison to 2017-18. Stainless Steel, Flat Products such as HR/CR Coils, GP/GC Coated and Electrical Sheets are the major categories that are being imported from other countries. Among the steel grades that are imported, there are some that are not manufactured in adequate quantity in the country viz. CRGO, CR sheets with zero bends, API grade steel sheets/coils, special alloy steels of some grades used in Automobile components etc. Some of the reasons for these grades not getting manufactured in India vary from lack of availability of technology, not enough demand to justify a separate production line.

(c) Details of finished steel imports in India are as under:-

Year Steel Imports (in million tonnes) Value of import( in Rupees crore)
2015-16 11.71 45044
2016-17 7.23 34104
2017-18 7.48 39484
2018-19 7.83 49317

(d) No, Sir.

Contd……../2-
-: 2 :-



(e) The imports of steel for the past two years namely 2017-18 and 2018-19 has been stable and there was an increase of 4.7 % in finished steel imports in 2018-19 over 2017-18 levels. Imports from China have reduced by 11.7 % from 2017-18 to 2018-19.

(f) Steel is a deregulated sector. However, the following steps have been taken by the Government to protect/promote indigenous steel industry:-

(i) Domestically Manufactured Iron & Steel Products Policy, 2017 has been revised on 29.05.2019 by not only reducing the threshold minimum value of contract from Rs 50 Cr to Rs. 25 Cr, but also by including Engineering, Procurement and Construction (EPC) contracts within the ambit of this policy, increase in minimum value addition levels and inclusion of Capital goods.

(ii) Government has also notified National Steel Policy, 2017 to promote domestic steel sector.

(iii) Government has notified 53 Steel and Steel Product (Quality Control) Orders which is applicable for both domestic productions as well as imports. The Steel Quality Control Order are implemented in the public interest for protection of human, animal and plant, safety of environment, prevention of unfair trade practices and national security.

(iv) In order to protect the domestic industry from unfair external competition, appropriate trade measures such as anti dumping duties and countervailing duties have been/are imposed.

********