Steel majors plan blitz to raise consumption

In a bid to boost steel consumption in the domestic market, the ministry of steel is planning a generic campaign for the commodity.

The details of the campaign including funding is being worked out by Institute of Steel Development and Growth (INSDAG), an association promoted by the steel ministry and major steel companies.

R K P Singh, director general of the association said, INSDAG would write to major steel companies to come forward for funding this campaign. The promotion would be across print and electronic media and in different languages.

Singh said, since the campaign would require substantial funds the association planned to approach the steel companies to fund it. The campaign would be ready in a month's time.

"The steel ministry and companies have in-principle agreed to launch such a campaign. The modalities will now have to be worked out" he said.

While the steel producers had increased their exports manifold, the same had not happened in the domestic market. Singh said, exports last year, were to the tune of five million tonne as compared to 1.5 million tonne in the previous year.

In contrast, the per capita consumption of steel in India was stagnant at 30 kg.The per capita consumption in China was around 160 kg and in Korea 900 kg and 700 kg in Japan.

Singh said, the campaign would highlight the use of steel as construction material vis-a-vis wood and concrete. Use of steel in large consuming sectors like construction was quite low The steel-cement ratio in the UK was around 1.5 as against 0.3 in India.

The campaign would endeavour to promote steel as a fast track construction material. The objective was to achieve the long-term target of 100kg of steel consumption in 10 years' time, which was the official target set by the ministry of steel. He said, the campaign would modelled on the one carried out by the Steel Construction Institute in the UK.

Alongside, INSDAG would also host exhibitions and conferences to boost consumption. In the urban areas INSDAG had lined up specific promotions in areas like airport construction. "Rural exhibitions have just started" said Singh.