No plan of disinvestment in steel sector: Paswan

Shillong, Jun 4 (UNI) The Centre has no plans of initiating disinvestments in the steel sector with the steel ministry putting all efforts to increase the productions of steel in the country, Union Minister Ram Vilas Paswan said here today.

''Our goal now is to have a mega steel industry in the country'', Mr Paswan told a news conference after the conclusion of Hindi Salahkar Samiti meeting of ministry of Steel held at Hotel Pine Wood here.

Mr Paswan said the growth rate in 2005-06 of Steel production has increased to 6.5 per cent due to redressal of capacity constraints. He said the 2004-05-growth rate, was only 4 per cent in comparison to 2003 and the consumption has increased by ten per cent. India's production has increased from 37 million tones in 2003 to 42 million tones in 2005-06.

He said India's world Steel production was 1150 million tones in 2005, which is far ahead of China's production, which was only 350 million tones in 2005.

He said India's per capita Steel consumption is 32 kg while the neighboring country China's per capita consumption is 180 kg and in other developed countries is 400-500 kg.

At present, he said the government has an investment of Rs one lakh crore in the private and public sector and have generated five lakh employment to the unemployed youth in the country.

The Union Cabinet Minister said the Steel Authority of India Limited have also decided to increase its production by one million tonne. By 2019, the Union Steel minister said SAIL is all set to produce upto 110 million of steel in the country. Besides that, he said the government dream is to merge all the Steel industry with SAIL for the benefit of the Country.

Mr. Paswan said Indian Iron and Steel Company (IISCO) has been merged effectively with SAIL.

He said the government action has been initiated on the recommendation made by the expert group under the Chairmanship of Mr B L Das, former secretary of Steel have also recommended the merger of NINL, MEL and BRL with SAIL and merger of Spong Iron India Limited (SIIL) with National Mines Development Corporation.

He said once the merger took placer SAIL would get the ownership and the other Steel companies would get the benefit of qualitative leadership of SAIL.

The Cabinet has approved the expansion proposal of RINL on October 27, 2005 to increase its capacity from 3 million tones to 6.3 million tones by 2007-08 at the cost of Rs. 8692 crore.

UNI RRK-PRS KK/src1605