India seventh largest crude steel producing nation: Paswan

New Delhi, May 24 (UNI) Steel Minister Ram Vilas Paswan today said India has moved two places up to become the seventh largest crude steel producing country in the world in 2006-07, according to the annual survey conducted by the International Iron and Steel Institute (IISI).

Addressing reporters here today, Mr Paswan said according to the IISI survey of 2004 India was the ninth largest crude steel producer.

He said the production of finished, steel including alloy steel in India, stood at 39.24 Million Tonnes (MT) which substantially went up to 51.66 MT by 2006-07.

The apparent consumption of finished steel, including alloy steel, during 2003-04 placed at 33.12 MT sharply moved up to 46.70 MT by 2006-07.

The Minister said during the last three years the production as well as the consumption growth rate has touched double digit figures. The production figures for 2006-07 has moved up by 31 per cent as compared to 2003-04 and the consumption figure has increased by 41 per cent as compared to 2003-04.

He said the financial results of the public sector undertakings (PSUs), functioning under the Ministry of Steel, showed a rise in the Profit Before Tax (PBT) of 189 per cent during 2006-07 as the revenue went up to Rs 15, 687 crore from Rs 5426 crore during 2003-04.

He added that it was manly possible due to hike in the PBT's of Steel Authority of India Limited (SAIL) by 259 per cent, Rashtriya Ispat Nigam Limited (RINL) by 45 per cent, National Mineral Development Corporation (NMDC) by 468 per cent, Manganese Ore India Limited (MOIL)by 333 per cent, Metal Scrap trading Corporation (MSTC) by 126 per cent, MECON by 101 per cent, OMDC by 58 per cent and HSCL by 59 per cent.

The contribution of the PSUs under the Ministry to the public exchequer has also gone up significantly. The contribution to Centre, the State Government and Government insurance companies has gone up by 172 per cent from Rs 5865 crore to Rs 15,945 crore during 2006-07, Mr Paswan added.

The Steel Minister said SAIL attained two major achievement during the period.

The first being the turnaround of the Tamil Nadu-based sick Salem Steel Plant, which was at loss till March 2006 to the extent of over Rs 66 crore earned a profit of Rs 118.31 crore during 2006-07 and secondly the amulgamation of the West Bengal-based sick Indian Iron and Steel Company (IISCO), Burnpur which would very soon take up the modernisation programme in this company.

Responding to a question on the steel sectors revival, Mr Paswan said the government had earlier appointed a committee headed by former Steel Secretary J K Bagchi to look into the various aspects of the steel sector. The committee has already submitted its report and very soon the government will take a final decison on this report , he added.

Mr Paswan said the Hindustan Steel Construction Limited (HSCL) has earned a record turnover of Rs 425 crore during 2006-07 which is highest since its inception.

He said a number of the PSUs under his Ministry have taken up major expansion plans, including SAIL raising 25 Million tonnes (MT) of hot metal from the present level of 14.6 MT and this is already underway. The total estimated cost of expansion is over Rs 40,000 crore and the entire expansion exercise is schedled to be completed by 2010, he added.

RINL has also taken up an expansion plan to increase its capacity from three MT to 56.3 MT at an estimated cost of Rs 8692 crore. The entire expenditure is being borne by the company from its internal resource and partly from external borrowings. This plan is scheduled to be completed by 2009.

UNI