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Increase in Production Through Modernisation Programme

INVC,, New Delhi,,

The Minister of State in the Ministry of Steel, Shri A. Sai Prathap has said that Steel is a de-regulated sector. In a de-regulated, liberalized economy, decisions related to production are taken essentiality by the individual steel producing units.

In a written reply in the Rajya Sabha today he said, the Government in such a market economy has the role of a facilitator only – it provides the overall policy environment to promote growth of industry. In order to promote the domestic steel industry, the Government has framed the National Steel Policy, 2005 and 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.

He said, data on production of pig iron, sponge iron and finished steel in the country during the last three years are as under:-

Year

Production (in million tonnes)

Pig iron

Sponge iron

Finished Steel

2007-08

5.28

20.38

56.08

2008-09

6.21

21.09

57.16

2009-10*

5.68

20.62

59.58

Source: Joint Plant Committee; * = provisional

Public sector companies i.e. Steel Authority of India Ltd. (SAIL) and Rashtriya Ispat Nigam Ltd. (RINL) are undertaking modernization programmes through brown-field expansions. SAIL envisages increasing hot metal production capacity from 13.82 million tonne per annum to 23.46 million tonne per annum in the current phase as per plant-wise details given below:-

Project

Present Installed Capacity

(in million tonnes)

Capacity after Modernization

(in million tonnes)

Bhilai Steel Plant

4.08

7.5

Rourkela Steel Plant

2.0

4.5

Bokaro Steel Plant

4.59

5.77

IISCO Steel Plant

0.85

2.91

Durgapur Steel Plant

2.09

2.45

Salem Steel Plant

0.18 (Saleable steel)

0.34(Saleable steel)

Note - Pig iron is not a main product of SAIL’s integrated steel plants

The actual capital expenditure incurred by SAIL during last three years is as follows:

Year

Expenditure

2007-08

Rs. 2181 crores

2008-09

Rs. 5233 crores

2009-10 (Prov)

Rs. 10606 crores

RINL is implementing expansion plan to raise its capacity from 3.0 million tonne to 6.3 million tonne per annum of liquid steel at an estimated cost of Rs.14, 489 crores. The details of expenditure in the last 3 years are as under: -

Year

Expenditure

2007-08

Rs. 1131 crores

2008-09

Rs. 2641 crores

2009-10 (Prov)

Rs. 1840 crores

Another public sector company i.e. NMDC Ltd. is in the process of setting up a 3 million tonne per annum integrated steel plant at Nagarnar, Chhattisgarh with an estimated investment of Rs. 15,525 crores which is likely to be commissioned in the year 2014, the Minister added.g

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