ISA Reiterates the need for
strengthening Indian Steel Industry
Says Government should partner the industry to make it more
competitive; Showcases its official website for increased awareness about the industry
Kolkata, June 18, 2004 : Indian Steel Alliance (ISA), an
association of major flat steel producers in the country, today called for immediate steps
by the Government to strengthen the Indian steel industry, which has just emerged from a
very bad phase. It added that the Government should partner the industry in fulfilling its
true potential.
Dr. Jamshed J. Irani, Chairman, ISA said, “As India moves ahead on
the road to development, the demand for steel will increase. The steel industry is
targeting a total output of 60 MnT by 2012 and 100 MnT by the year 2020. For every 1 MnT
of capacity addition, the industry will require an investment of Rs 3000 crores. It is
thus imperative that the industry remains viable and competitive.”
Added Mr. Moosa Raza, President, Indian Steel Alliance, “If the
Indian Steel Industry has to reach a target of 60 MT in the next 8 years, confidence
building measures are needed to encourage all stakeholders. The Entrepreneurs, the
Markets, the Financial Institutions and the Government, all have to work in tandem to
maintain and encourage the growth of the industry.”
ISA recommended the following measures in order to make the Indian steel industry more
growth oriented:
Continued thrust on infrastructure development especially construction
and housing which, will provide a fillip to steel consumption in the country.
Resumption of DEPB benefits on steel exports to make Indian steel
industry globally competitive.
Sprucing up of enabling infrastructure such as ports and highways. The
Railway network should be strengthened further by adding more wagons and improving
connectivity between ports and steel producing plants by laying more tracks.
Changing world market dynamics, especially the cooling of Chinese
economy may result in Indian steel industry being faced with the threat of cheap imports.
The Government should provide adequate protection to the domestic steel industry and not
bring down import duty on steel any further from the current 15% level.
Availability and prices of raw materials is a major concern for the
Indian steel industry. Policies that contribute to development of raw material resources
within the country should be initiated. Relief should be provided on import of raw
materials, which are not indigenously available/inadequately available.
Status quo on current excise duty on steel needs to be maintained to
make steel more affordable to the user industry.
Current import duty of 40% on seconds and defectives should be
maintained. Historically, imports of cheap seconds and defectives have hurt the Indian
steel industry. To maintain the quality of domestic steel such imports must be
discouraged.
ISA also previewed its official website www.indiansteelalliance.com.
The website provides visitors with comprehensive information on the Indian steel industry,
its historic development and current status. The website will provide latest data on the
Indian and global steel industry as well.
Using fairly non-technical terms, the site explains the process of steel making, the
different varieties of steel and their applications. The user friendly website also has
links to the websites of ISA member companies and features ISA’s latest advertising
campaign. The website is a part of ISA’s ongoing initiative to increase awareness
about Indian steel industry and bringing steel closer to general public.
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