Steel PSUs told to tap technology for special products

The Steel Ministry has directed major PSUs to form collaboration to develop necessary technology for production of high-grade steels to meet domestic demand and reduce reliance on imports.
At a recent meeting with Steel Authority of India (SAIL) and Rashtriya Ispat Nigam (RINL), Secretary G Mohan Kumar has asked them to "sign memorandum of understanding (MoU) or joint venture agreement for development of technology for high-grade steel," a source told PTI.
Special or high-grade steels fetch better price than the traditional products, place a firm ahead of the competition and make the job of the marketing team easier.
Handicapped with hardly any captive mine reserves, steel makers of Japan and South Korea are more inclined to produce high-grade products to boost their profitability.

"Secretary has also asked them to come out with blueprint for production of special/high-grade steel," the source said.
Indian steel makers rank relatively low on the special steel front compared to their counterparts in Japan or South Korea, but things are improving with almost all domestic firms realising that these are the key to survival in the long-run.

"This is due to the fact that India has free trade pacts with Japan and Korea and until and unless, Indian steel makers brace themselves from now on, these two Asian peers may take away with the biscuit," he said.
Worried over the growing import of cheap steel from Japan and South Korea, some Indian steel firms have already demanded that steel be removed from the purview of free trade pact.

In the process of implementing Rs 72,000 crore expansion programme to raise hot metal capacity by 70 per cent to 23.5 million tonnes per annum (mtpa), SAIL is eyeing to raise share of special steel in its product basket to 60 per cent from the present level of 40 per cent.
The company adds around 20 products in its product basket each year. SAIL is also in the process of inking a MoU with a foreign firm to develop technology for special steels.
Of the total 2.9 mtpa capacity, the share of value-added products in RINL is 80 per cent and its Chairman and Managing Director P Madhusudan said the ratio would be maintained as it expands capacity to 6.3 mtpa by August-September this year.

The company, he said, is not on the look out for signing pacts with foreign firms to produce value-added prodcuts at the moment; but it is not aversed to the idea.
"Once we stabilise our expanded capacity, we might enter into a venture to produce more and more high-end products," Madhusudan said.