(a) whether the Government is contemplating to fix the production of steel commensurate with its
consumption;
(b) if so, the details thereof;
(c) whether the Government has received any suggestions in this regard; and
(d) if so, the action taken by the Government thereon?
THE MINISTER OF STATE IN THE MINISTRY OF STEEL (SHRI JITIN PRASADA)
(a) & (b): Government is taking steps to facilitate the production of steel through both
green-field and brown-field capacity expansion to take care of growing demand of steel. Under
the existing policy regime, Government`s role is to act as a facilitator and formulate suitable
policy for the overall growth of the steel industry including steel production to match the
anticipated demand in the country. The production targets, in respect of various kinds of steel
products are fixed by the individual producers based on their installed capacities as well on
their perception of the market demand. However, considering the fact that the country`s steel
demand is growing in the 12-13% range over these years. Government has taken various steps in
facilitating higher steel production in the country. Some of these initiatives are:-
(i) Steel Authority of India Limited (SAIL) is expanding its crude steel production capacity
to 24.84 million tonnes by the year 2011-12 from the current level of 12.84 million tonnes.
(ii) Rashtriya Ispat Nigam Limited (RINL) is also expanding its production capacity to 6.8
million tonnes by the year 2011-12 from the present level of 2.91 million tonnes.
(iii) In order to monitor and coordinate issues concerning major steel investments in the
country, Government has constituted an Inter Ministerial Group (IMG) consisting of Secretaries
of the Ministries/Departments of Steel, Industrial Policy & Promotion, Railways, Road Transport
& Highways, Shipping, Environment & Forest and Mines as well as the Chief Secretaries of concerned
State Governments.
(c) & (d): Government has not received any specific suggestion in regard to fixing the
production to commensurate with the consumption. However, Ministry of Steel undertakes regular
interaction with steel producers and consumers to discuss all relevant issues such as production,
demands, distribution, investments, etc., affecting the steel sector in the country. The interaction
with the stakeholders acts as important guideline and feedback material in formulation of policy
directives undertaken in the Ministry.