New National Steel Policy

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New National Steel Policy

The Government proposes to revisit the existing National Steel Policy. It is at conceptual stage.

Based on the decision taken in the meeting of High Level Committee on Manufacturing held on 09.07.2013 to achieve the ambitious target of 300 Million Tonne Per Annum (MTPA) steel production capacity by 2025, a concept of Special Purpose Vehicle (SPV) was enunciated. Four mineral rich states, namely, Chhattisgarh, Odisha, Karnataka and Jharkhand were identified for setting up of Integrated Steel Plants through SPV route, Memorandum of Understanding (MoU) has been signed with the State Governments of Jharkhand and Chhattisgarh.

The global glut and surge in the import prices of steel has adversely affected the domestic steel industry and it has resulted in erosion of profits of domestic steel companies and has resulted in Non- Performing Assets (NPAs) of domestic steel companies.

The Government has taken the following steps to provide support to the domestic steel industry:

 i.               To ensure that only quality steel is produced and imported, Government has notified Steel and Steel Products (Quality Control) Orders dated 12.03.12 and 04.12.15.
ii.               Govt. has notified MMDR, Amendment Act, 2015 to streamline grant of Mining Leases in order to maintain sufficient availability of raw materials for various sectors including steel sector.
iii.               To provide level playing field to the domestic steel producers, Govt. has imposed Minimum Import Price (MIP) on 66 steel products.
iv.               Government has imposed in June.2015, an Anti- Dumping Duty on imports of certain variety of hot-rolled flat products of stainless steel from China ($309 per tonne), Korea ($180 per tonne) and Malaysia ($ 316 per tonne).
v.               Hiked import duty on ingots & billets, alloy steel (flat & long), stainless steel (long) and non-alloy long products from 5% to 7.5% and non-alloy and other alloy flat products from 7.5% to 10%. This was further revised in August, 2015 on flat steel from 10% to 12.5%, long steel from 7.5% to 10% and semi-finished steel from 7.5% to 10%.
The Minister of State for Steel Shri Vishnu Deo Sai gave this information in reply to a question in the Lok Sabha today.

Special Package for Steel Sector
Indian Steel Association and Indian Chamber of Commerce had sent representation to Ministry of Steel for working out a suitable comprehensive package to support steel sector. Their representations have been forwarded to Department of Financial Services.
To curb cheap imports of steel products into the country the Government has imposed the Minimum Import Price (MIP) on 173 HS Tariff lines concerning steel products vide Notification no. 38/2015-20 dated 5th February, 2016 for the period of six months. Further MIP on 66 HS Tariff lines was continued for period of two months vide Notification No. 20/2015-20 dated 4th August, 2016 and further extended upto 4th December, 2016 vide Notification No.30/2015-20 dated 4th October, 2016. Government has imposed in June, 2015, Anti-Dumping Duty on imports of certain variety of hot-rolled flat products of stainless steel from China ($ 309 per tonne), Korea ($ 180 per tonne) and Malaysia ($ 316 per tonne).

Press Note
Moving systematically towards a cashless society as visualized by Prime Minister Shri Narendra Modi, the Minister of Steel Shri Chaudhary Birender Singh had a detailed meeting with the officials of Steel Ministry on 25.11.2016. It has been decided to have time bound approach to ensure a smooth, effective and sustainable shift to a cashless society.
Initially, Steel Manufacturers, both in Private and Public Sector will ensure that all their business transactions are undertaken in digital mode. Thereafter, the focus will be on colonies (including hospitals, schools, etc. therein) of Steel manufacturers both in the Private and Public sector. Special camps will be held for both regular and contract employees and their families to familiarize them with digital/electronic/mobile operations. In marketplaces operating with Project areas of Steel manufacturers, shopkeepers/traders would be encouraged to shift to POS machines (Point of Sale) which users can use to transact their shopping and business. The smaller transactions particularly can be transacted in mobile mode.
The Steel manufacturers should examine provision of internet connection in the Project area in entirety under their respective CSR mandates. We will facilitate repeat camps to train/retrain those requiring this training with the objective of attaining a cash free environment. This exercise may be also replicated in villages in the Project areas of CPSEs as well as in areas where currently CSR operations/activities are underway. CPSUs may work with not merely scheduled commercial banks but also post offices and cooperative banks working in the region. The Ministry of Steel proposes to monitor progress achieved regularly on fortnightly basis starting by December 2016.
Ministry of Steel, Udyog Bhawan, New Delhi
November 28, 2016

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