STEEL INDUSTRY SHOWS SIGNS OF IMPROVEMENT
Steel
Industry in India is coming out of its worst
ever phase
and showing sings of improvement, said today the
Minister of Steel
Shri B.K.Tripathy, addressing
the members of the Consultative Committee attached to his
Ministry. After a long period, he said, SAIL and TISCO
have increased the
price of flat steel products as the international prices are gradually
firming up. Prices of HR Coils and sheets have increased by Rs.700-1000
depending on grade and quality. Prices of long products have gone
up by Rs.500-1000 approximately. Demand has also picked up marginally
which may help absorb the effects of the hike in prices.
The Minister informed
that during 2001-02, finished steel production has gone up by
2.5 per cent to nearly 30 million tonnes. Pig iron production
has registered 16.2 per cent growth and has been 3.95 million
tonnes. India during the year has exported 3 million tonnes and
imported 1.38 million tonnes of steel.
The Minister said
that the Golden Quadrilateral Highway Project would give substantial
boost to the per capita consumption of steel which is as low as
27 kg against world average of 116 kg. The Government proposes
to set up an urban reform incentive fund with an initial allocation
of Rs.500 crore to provide reform linked assistance to states.
This fund along with incentives to finance housing schemes would
help increase steel consumption in the country, he said.
Discussing the
problems of the Public Sector Undertakings like Metallurgical
& Engineering Consultants Ltd. (MECON), Metal Scrap Trading
Corporation Ltd. (MSTC) and Ferro Scrap Nigam Ltd. (FSNL), the
minister said that they are in the process of disinvestment. The
Government has decided to disinvest 51 per cent of the stake in
MECON to a strategic buyer. Global invitation to this effect has
been issued. As regards MSTC, it has been
decided to pursue 100 per cent disinvestment of Government shareholding
including 60 per cent holding of its subsidiary company FSNL,
by strategic sale. However the Members of the Committee were not
in favour of disinvestment of profit making units. They argued
to pursue measures for their revival.
The Members of the
Parliament S/Shri Tilakdhari Prsad Singh, Manjaylal, Shriram Chauhan
and Jibon Roy attended the meeting.
