Iron ore production likely to be optimized to achieve the 300 MnT steel production target.
Indian steel ministry in a one day conference on 22 Aug’15 addressed on ‘Roadmap to 300 MnT pa: Opportunities and Challenges for Secondary Steel Sector’. Finance minister Arun Jaitley said that steelmakers should be more competitive. He also outlined challenges faced by steelmakers amidst continuous dumping and uncertain global market.
He further added to the discussion and said iron ore miners have to optimize their production as per EC limit. He also emphasized miners have to mine as per limit assigned to them in order to pay the annual royalty as per EC limit. The center may bring a regulation to ensure optimum production.
For imposition of safeguard duty, the ministry stated that DGFT is investigating the present challenged faced by Indian steel industry and will surely provide proper measures in order to protect the industry.
In context of coal linkage auction, he asked different Steel Association (which were against coal linkage auction) to propose a fair and alternative root for allocation of coal mines to non-regulated sector. He added that an equal platform should be provided to each sector.
Meanwhile, the ministry also addressed on non-availability of power to steelmakers by private companies/distribution network. The ministry said that the center will look into fair power distribution to secondary steel industry at reasonable price.
Although, India’s crude steel production increases by 5% every year, the country’s steelmakers should be more competitive to touch the target of 300 MnT pa roadmap by Indian steel ministry. In FY14, the nation had produced 81 MnT of steel, which surged to 85 MnT in FY15, as per ministry data.
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