 "New steel policy on the cards: Minister")
"The new policy is likely to focus on capacity addition and address issues related to raw material security, environmental challenges and land acquisition," Minister of State for Steel and Mines Vishnu Deo Sai said here at an event organised by CII.
The Minister said that the Indian Steel Industry is set to become the second largest steel making nation in the world by 2016 from the fourth position at present. India's steel sector contributes around 2% to the GDP.
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Addressing the Steel Summit 2014 organised by CII, Sai said that discussions are already under way on setting up an eastern corridor to address freight and other logistics issues faced by the industry.
"There should also be a national body to supervise and undertake research in the steel sector," he said.
Steel Secretary Rakesh Singh said to encourage greenfield units, discussions were on regarding creation of Special Purpose Vehicles in association with the state governments.
"These SPVs would ensure raw material linkages and clearances for the project, and then be auctioned or sold to the private sector through appropriate mechanisms," he said.
SAIL Chairman C S Verma highlighted the unavailability of raw materials, high cost of logistics, human resource gaps and low R&D spend in the steel sector. He said there is a need to review FTAs, especially for CEPA and dumping by China under the guise of alloy steel.
JSPL Chairman Naveen Jindal said steel in India is still very expensive and as a result, per capita consumption has been almost stagnant.
"For costs to fall, output must increase. To increase output and meet the goal of 300 mtpa by 2025, government support and favourable policies were essential," he said.
Firdose Vandrevala, Executive Vice Chairman, Essar Steel, said that there was a need for Indian steel to be at the lower end of the cost curve else it will not inspire confidence in the investor.