Par panel asks govt to take steps to boost steel consumption

Disappointed that the government has failed to initiate steps to boost India's per capita steel consumption, a parliamentary panel has asked it to direct major steel producers to build processing units in rural areas.
"Government should issue necessary direction to all major steel producers in the country to set up special processing units at various locations particularly in rural areas to boost the per capita steel consumption," Standing Committee on Coal and Steel has said in its latest report.
India's per capita steel consumption is just around 60 kg, as against the world average of over 210 kg, and 460 kg in China.

"What has perturbed the Committee is that despite their recommendation to the government to come out with a plan directing all steel producers, be in public or private sector to set up 'made-to-order' special processing units at various locations in the country to boost the per capital steel consumption in rural areas, the government has failed to issue necessary instructions," the panel said.
The Committee, chaired by Kalyan Banerjee, said the government instead of proper action has only forwarded the action taken by steel PSUs like SAIL and RINL.
While RINL has planned to set up two steel processing units to manufacturer 'made-to-order' products to cater to the rural requirement, SAIL is reported to have taken up comprehensive development of 79 model steel villages spanning over eight villages.

India's steel consumption grew 3.3 per cent, lowest in three years, to 73.3 million tonne in 2012-13 on subdued demand due to slackening economy and high interest rates.
It grew by 5.5 per cent in 2011-12 and 9.9 per cent in 2010-11.