Govt targets steel production upto 80 MT by 2020

New Delhi, Nov 7: The Government has revised the steel production target from its present level of 42 Million Tonnes (MT) to 80 MT by 2020, said the Steel Minister Ram Vilas Paswan.

Addressing the Economic Editors Conference here today Mr Paswan said the production level was just 37 MT when the UPA government came to power about two years back.

The production has already touched 42 MT and this would be further raised to 80 MT following the signing of a large number of Memorandum of Understanding (MOU) with the State Governments by a large number of entrepreners.

He said steel became a fancy item for the new as well as the existing steel producers in the wake of its global boom and that is expected to last for some more years.

He said the profits in the steel sector has gone up from Rs 5500 crore in 2005-06 to Rs 6600 crore upto October 31, this year.

He said the factor of price hike in steel in the entire profit scenario is just to the tune of 18 to 20 per cent and the rest on account of better raw material management and lower power consumption along with the development of high value product mix, Mr Paswan added.

Steel Minister disclosed that his Ministry had a meeting with the Chief Minister of Karnataka to provide suitable alternate mining site to Kudhromukh Iron Ore Company Ltd (KIOCL) and they have assured to submit an affidavit in this context before the Supreme Court and accordingly the State's Attorney General have been asked to take steps.

He further added that the Ministry has also asked the steel companies to spend two per cent of their profit towards social sector and that is expected to give a big boost towards the economic and social upliftment of the people in the country.

The Minister regretted that the per capita steel consumption in the country is very low as compared to China and developed countries.

In China it is 180 Kg and in the developed countries it is 400 to 500 Kg, while in India this is just 35 Kg. But the picture in rural areas is very tragic which is pegged at just 2 Kg per person per year.

He said the ministry is committed to increase this consumption pattern in the rural side and for that they have advised the steel PSU's open up dealers outlets in each of the districts in the country.

Currently Steel authority of India Ltd (SAIL) had just 145 outlets and Rashtriya Ispat Nigam Ltd (RINL) got 39 outlets, these numbers would be increased to 279 and 100, Mr Paswan said.

He said this sector plays a major role in the country and provides over 5 lakh jobs.

He said the domestic and the foreign investors have shown a great deal of interest insetting up steel capacities in the country.

Altogether 116 MOUs have been signed in various States with intended capacity of about 150 MT, with an investment of Rs 3 lakh 57 thousand crore.

UNI