Union Minister of Steel Dharmendra Pradhan put a stress on global outreach as means of sourcing raw material as well as for exploring new overseas markets for Indian steel, while speaking at the Union government’s first “Chintan Shivir”, organised in conjunction with the Joint Plant Committee (JPC) and the Federation of Indian Chambers of Commerce & Industry (Ficci). He also emphasised on the need to reduce exports of mineral resources and concentrating on value-addition. He focused on the need for a transformational leap in the Indian steel industry.
Unveiling the new logo of the Ministry of Steel, “Ispati Irada”, Pradhan said that the country must work with an “Ispati Irada” to increase appropriate usage of steel. He informed that eastern India is the focus of the government. Mission Purvodaya will strive to work on the paradigm of eastern India driving national growth, he said.
It also emerged during the sessions that the state governments and the Government of India (GoI) are working together to avoid any anticipated disruptions in iron ore supply due to the expiry of mining licences in March 2020.
In addition, issues related to logistics are also being resolved through effective co-ordination between the state governments and the GoI.
Stakeholders Deliberate
The Chintan Shivir was a landmark event in the history of the Indian steel industry – not only in terms of participation but also from the perspective of information sharing through the day, Saraswati Prasad, Special Secretary, Ministry of Steel, said. The sessions were designed keeping in mind the current and future needs of the steel industry, aligned to the intent of the National Steel Policy, 2017. There were three moderated panel discussions where the topics were, “Facilitating domestic capacity expansion with special reference to the secondary steel sector”; “Demand generation: Enhancing steel usage in various sectors”; and “Making India a hub for high grade steel”.
The event also provided an opportunity for the stakeholders from the steel fraternity to hold discussions and interactions on topics of utmost relevance. The stakeholders emphasized on creating an ecosystem for enhancing steel usage in the country, scaling up steel-making capacity in the primary and secondary sectors, developing steel clusters in co-ordination with the state governments and having in place an enabling steel scrappage policy.
The industry captains highlighted the key issues that act as deterrence to the growth of the sector. These include the lack of adequate logistics infrastructure, security of raw material supplies, delays in statutory approvals like environmental, forest and other statutory clearances, availability of water, the fact that there is very little investment in R&D, lack of skill development, high power tariffs, lack of affordable access to finance and taxes in the mining industry.
Stephen Gorner, Global Head, Basic Materials Practice, Mckinsey, instilled confidence that demand for steel may grow in India. He emphasized on raw material security and reinvention of business models, processes and products.
The discussions brought forth knowledge gaps in the usage of steel. Resolving this would help to generate demand. Also, taking advantage of the various initiatives of the GoI, such as Sagarmala, Bharatmala, Housing for All etc will also lead to enhanced steel consumption.
It also emerged that the steel industry needs to move on from its basket of generic items to value-added and high-end products.
No Question Wasted
There was active participation from the audience, who asked numerous and valid questions. The ministry is evidently taking this Chintan Shivir very seriously and as per Saraswati Prasad, “the ministry has made a note of all various questions. Some of them were answered. Many of them remained unanswered. Make sure, the ministry will make use of these questions in the formulation of the policy”, he said.
Earlier in the day, in a circulated note, the government said, “…it is imperative to engage in stakeholders deliberations so that the ministry can plot a road-map towards creating a vibrant, efficient and globally competitive Indian steel sector.”
~ By Madhumita Mookerji
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