Question : DEMAND AND SUPPLY OF STEEL

THE MINISTER OF STATE FOR STEEL(SHRI BENI PRASAD VERMA) (INDEPENDENT CHARGE)

(a)to(c): Data on demand i.e. apparent consumption (inclusive of double counting) and supply i.e. availability for domestic use, after accounting for exports and stock variations, and the gap between demand and supply of finished steel in the country during the last year (i.e. 2009-10) and the current year ( i.e. April-December 2010-11) are given in the table below :-

Year	Finished Steel	Availability for	Apparent	Gap	domestic use	Consumption##	(million tonnes)	(million tonnes)	(million tonnes)
2009-10	56.17(52.44)	63.55(58.28)	7.38(5.84)
Apr-Dec2010#	46.44(42.05)	51.80(47.29)	5.36(5.24)

Source: Joint Plant Committee;

# provisional;## includes double counting; met through imports;figures in () refer to levels of last year

The gap between domestic demand and availability of steel is met through imports.

The ratio of imported and indigenously available (i.e. available for domestic use after accounting for exports and stock variations) finished steel in the country for the last two years and the current year (April-December 2010) is given in the table below:-

Year	Finished Steel
Availability for	Import	Ratio of (b)/(a)	domestic use	(million tonnes)	(million tonnes)
2008-09	52.44	5.84	0.11
2009-10	56.17	7.38	0.13
Apr-Dec2010#	46.44(42.05)	5.36(5.24)	0.12(0.12)

Source: Joint Plant Committee; provisional;figures in () refer to levels of last year

Steel is a de-regulated sector. In a de-regulated, liberalized economy, decisions related to setting up of steel projects are taken essentially by the steel producing units depending upon various factors such as commercial merits, market trends, demand and supply etc. The Government in such an open market economy has the role of a facilitator only and in that capacity, it promotes/encourages growth of steel industry through suitable policy measures. The Government has constituted an Inter-Ministerial Group (IMG), under the chairmanship of Secretary (Steel) in 2007, to monitor and coordinate the issues concerning major steel investments in the country related to infrastructure, raw material supply, environmental clearance and other resource constraints.

A public sector company namely NMDC Ltd. is in the process of setting up of 3.0 MTPA green field integrated steel plant at Nagarnar, Bastar District, Chhattisgarh. Iron Ore for this steel plant is envisaged to be sourced from Bailadila Iron Ore deposit-4 which will be developed as a joint venture company of NMDC and Chhattisgarh Mineral Development Corporation (CMDC). The commissioning of the plant is expected by end of 2014.