Campaign to prop up steel use on anvil

The Union ministry of steel and the industry have taken up promotion of steel on a war footing.

The highlight of the generic campaign is a media campaign, funded by the major steel producers, main associations of small steel producers and the ministry.

Industry sources said, 5-7 top creative agencies would make a pitch for the campaign.

The campaign would cost in excess of Rs 20 crore, with major steel producers contributing Rs 5 per tonne of saleable steel production by 2005-06, steel ministry Rs 7-8 crore and the associations Rs 1 crore each.

The ministry has made it clear that if the figure exceeded the budgeted figure then the participants should bear the additional funding.

The Institute for Steel Development and Growth (INSDAG) would be the nodal point for the campaign. The institute would appoint a manager/senior manager, on a contract basis, for two years, to co-ordinate the campaign activities.

His tenure would depend on the success of the campaign and decision of the steering committee.

Industry sources said INSDAG would try and organise the presentation by November-end and the campaign was targeted for launch at the beginning of the new year.

Besides media campaign, the steel ministry feels that more remains to be done at the ground level.

The main steel producers should opt for more and more steel intensive buildings for their upcoming offices and townships.

The steering committee also agreed that all steel producers should come out with calendars on themes of landmark steel structures.

Further, INSDAG and the ministry would approach other ministries to have a policy shift to adopt steel intensive construction.

The move to promote steel consumption comes at a time when most of the steel companies have announced capacity additions with with a meagre consumption level.

India's production capacity would be touching at least 75 million tonne by 2012 and 200 million tonne by 2019-20.

However, steel is yet to touch the lives of people in a significant way, if compared to developed nations. India has a consumption of 40 million tonne, amounting to per capita consumption of 38 kg, against a world average of 150 kg and developed world average of 350 kg.