Kolkata: India’s per capita steel consumption remains ‘extremely low’ and is a cause for concern to the government, even as the country is on course to achieve the ambitious 300 million tonne output by 2030-31, a top official of the Steel Ministry said on Wednesday.
As per the latest Joint Plant Committee (JPC) report, India’s per capita consumption of steel stands at 69 kg, way below the global average of about 214 kg, Steel Secretary Binoy Kumar, said here.
“The per capita consumption (of steel) is extremely low and it has been a historical issue. The aim is to take the figure to somewhere around 160 kg by 2030 and the government has been taking initiatives towards this target,” he said.
The union cabinet had last year approved the National Steel Policy 2017 that envisages Rs 10 lakh crore investment to take capacity to 300 mt by 2030-31.
Kumar was speaking at the 56th National Metallurgists’ Day, jointly organised by the Indian Institute of Metals and Tata Steel. The senior Steel Ministry official said the government has taken certain policy initiatives like life-cycle costing of steel, which strives to make its usage more cost-friendly and competitive.
“We also came up with the policy for preference to domestically manufactured iron and steel products. Due to this initiative, the government has been able to save over Rs 8,000 crore on import bill of steel in the last one-and-a-half years alone,” Kumar said.
He said in the last four years, steel production increased by about 35 mt and its per capita consumption rose by 10 kg.
The Steel Secretary admitted that logistics and raw material security were major bottlenecks, and the Ministry was looking at easing them through alternate options like slurry pipelines, inland waterways and coastal shipping.
“We are also in discussion with the Railways and other CPSEs like ONGC and GAIL for long-term arrangements. Inland waterways and coastal shipping are potential options, and we need more investment in these,” he said.
Kumar said an integrated logistics policy could also be worked out involving states like Chhattisgarh, Jharkhand and Odisha, where several steel plants are located.
Asked on the quality of steel being produced, the senior government official said about 85 per cent of steel products are BIS certified, but the percentage needs to rise further. “The steel industry also needs a self-regulatory mechanism,” Kumar said.
| Indian metal arm |
| Steel imports at 5.3 million tonnes has fallen by a lower rate (4.3 per cent) as compared to exports at 5 million tonnes (a decline of 33.6 per cent) thereby making India a net importer. Steel consumption in the country at 56.0 million tonnes during the period indicates growth of 7.9 per cent which is one of the highest in the world. |
| Soaring output |
| China’s October steel output hit a record high at 82.55 million tonnes, up from 72.36 million tonnes in the same period last year. It is expected that China’s record production output and low capacity utilization rates will continue to put price pressure on global steel markets. |