Govt contemplating measures to boost steel industry: Tomar

The government is contemplating appropriate measures on a priority basis to boost the steel sector and also held discussions with various stakeholders for inputs, Union Minister Narendra Singh Tomar said today.
"We are in internal discussions on the measures and also held talks with all stakeholders in this regard," Tomar, who was in the steel city to inaugurate a newly constructed school in Kandra in adjoining Seraikela-Kharswan district, said.
Talking to reporters at Sonari Aerodrome here, the Steel and Mines Minister said the sector is the backbone of the country's economy.
The steel sector also has a major contribution in the country's GDP, he said adding that after talks with all stakeholders in view of the prevailing slump in the steel industry, the proposals had been placed before the Commerce Ministry to seek its view.

Stating that dumping from China was the reason behind the prevailing situation for the steel sector, Tomar said the government had already issued a quality control order to address the issue.
The problem of dumping was mainly from China, which was doing it at less than the production cost, causing problem to the domestic industries, he said.

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The safeguard measures, including import duty implemented by the government, has benefitted the steel sector but the government felt the need to do more for the sector, which is currently passing through a bad phase.
Tomar said his ministry has directed the Steel Authority of India (SAIL) to adopt austerity measures in view of the melt down in the sector.

"We have asked the officials of SAIL to adopt austerity measures and chalk out their plans accordingly," the minister said.
Asked whether the availability of iron ore was one of the reasons for the prevailing situation in the sector, Tomar said there was no dearth of raw material.
In fact, the production of iron ore has been increasing in the country, he claimed while elaborating that the country had produced 8 million tonnes in 2014 while it was 12.44 million tonnes by March 2015.
The availability of raw material was not the problem but the prevailing market situation was, he said.

This apart, the government has already issued notification to start process of auction of 43 iron ore blocks in the country, which was expected to be completed soon, Tomar said while appreciating the Narendra Modi government for bringing amendment in MMDR Act.
The amendment has made the auction process transparent, he said.
The steel minister said the government has plans to set up four plants - one each in Jharkhand, Odisha, Chattisgarh and Karnataka - through SPV to increase the capacity.
Altogether, the capacity of the four plants will be 24 million tonnes phase-wise, he said adding that six lakh people were directly employed in the sector while 40 lakhs indirectly.

The expansion and modernisation of SAIL plants also provided employment to many, he said adding that barring the Bhillai steel plant, the expansion and modernisation in other plants was almost completed.
Tomar said the Union government has recently launched "Pradhan Mantri Khan Kshetra Yojana, which would fund Rs 6,000 crore in the mining districts of the country for development of mining areas and for the welfare of the families displaced.