March 27, 2002

    Indian Steel Industry showed a growth rate of 9.6 per cent during 2000-01 against 12.1 per cent in 1999-2000, 1.9 per cent in 1998-99 and 2.8 per cent in 1997-98. Total domestic demand for finished steel during the year was 26.53 million tonnes. The total availability of finished steel was 26.65 million tonnes. This information is given in the Steel Ministry’s Annual report for the year 2001-02.

    The report reveals that total production of finished steel in 2000-01 was 29.27 million tonnes. India is the 10^th largest steel producing country in the world. Main producers contributed 12.49 million tonnes (43 per cent) and secondary producers 16.78 million tonnes (57 per cent). Regarding exports of the year the report says that the value of iron and steel exported grew by over Rs.1000 crore. During 2000-01, India exported 2.568 million tonnes of iron and steel valued at over Rs.4,672 crore as against 2.36million tonnes in 1999-2000 valued at Rs.3609 crore.

    Regarding the working results of SAIL during 2000-01, the reports says that SAIL achieved a turnover of Rs.16232.63 crore. The post tax net loss has been reduced to Rs.729 crore as against previous year’s past tax net loss of Rs.1720 crore. During the first three quarters of the year 2001-02, the production of saleable steel has been less than the target.

    Another PSU of the Ministry Rastriya Ispat Nigam Ltd. (RINL) has produced 2.51 million tonnes against a target of 2.217 million tonnes of saleable steel during 2000-01. During April-September, 2001 RINL has produced 1.31 million tonnes of saleable steel. The production of value added items has represented a growth of 20 per cent over the previous year. It registered a sales turnover of Rs.3436 crore during 2000-01, 16 per cent more than the previous year. Its exports were to the tune of Rs.314 crore. During April-September, 2001 VSP achieved a sales turnover of Rs.1802 crore, of which the export realisation was Rs.155 crore.

    During the year 2000-01, National Mineral Development Corporation Ltd. (NMDC) produced 15.05 million tonnes of iron ore and 56955 carats of diamonds. In the year 2001-02 (upto Sept.2001), it produced 6.47 million tonnes of iron ore and 39037 carats of diamonds. NMDC has taken up construction of Bailadila-10/11A and is also planing to develop Kumaraswamy mine in Karnataka to meet the expected increasing domestic demand.

    Manganese Ore India Ltd. (MOIL) achieved the highest ever turnover of Rs.165.22 crore in 2000-01. Despite the slow-down in the steel sector, MOIL earned a net profit of Rs.20.04 crore during the year. The Company has paid 20 per cent dividend to the Government continuously for the last eight years and has paid 27 per cent dividend for 2000-01.

    According to the report 9 new green field steel plants with a total capacity of approximately 5.75 million tonnes per annum have been fully commissioned by the end of 2001-02. Three additional projects have been partly commissioned involving a capacity of 2.2 million tonnes per annum.

    India is the second largest producer of sponge iron in the world. The growth of sponge iron specifically during the last few years in terms of capacity and production has been substantial. The installed capacity of sponge iron increased from 1.52 million tonnes per annum in 1990-91 to 6.616 million tonnes per annum in 2001-02. The production has increased from 0.9 million tonnes in 1990-91 to 5.44 million tonnes in 2000-01.

    Total production of pig iron in the country, according to the report, during 2000-01 was 3.39 million tonnes which was approximately 6.6 per cent higher than the previous year’s production of 3.18 million tonnes. The contribution of private/secondary sector units adopting mini blast furnace route in the overall production of pig iron in the country continued to increase during the year from 61 per cent in 1999-2000 to 72 per cent in 2000-01. These units have also been significantly contributing to the availability of the special grade pig iron including low Sulpur and low phosphorus varieties.