The government has exhorted domestic steel makers to become more competitive locally as also in export markets besides developing newer products for use in industrial and construction sectors.
In the upcoming Budget, the steel makers are expecting relaxation in basic custom duty (BCD) levied on raw materials like coking coal, anthracite coal, graphite, electrode, limestone and dolomite etc.
At a conference organised by Indian Steel Association (ISA) on Friday, Union Steel Minister Dharmendra Pradhan said domestic steel manufacturers should focus on increasing production of finished steel while reducing imports and increasing imports.
"I expect this from the ISA that when we hope for a tax restructuring from someone, we must increase production, become more competitive, increase exports and minimise import. The Finance Department gets some amount as revenue (on import of steel making raw materials). It must be filled with confidence that when the manufacturing line will be in our country the government can earn more (revenue by means of tax)," he said.
"We need to increase our consumption. When volume increases, we (industry) will be able to contribute more to the country. Then the Finance Department will take interest in the reforms we are expecting," the minister said.
Citing the example of Japan, Pradhan said the island country is an exporter of finished steel. It is a global supplier of steel for segments like automobile, electronics, big infrastructure etc.
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When Japan was able to make a global market for itself "why can't we (Indian steel players)", the minister stressed.
Minister of State for Steel Faggan Singh Kulaste said the domestic per capita steel consumption at 74 kg is lower compared to the global average consumption.
It is one-third of the global average per capita steel consumption, he said.
Kulaste asked the ISA, which is the apex body for steel makers in India, to draw a road map to increase ways of increasing steel consumption both in urban and rural areas of the country, and submit it with the ministry.
At the conference attended by domestic and international participants, Additional Steel Secretary Rasika Chaube said with government's enhanced thrust on 'Make in India' and focus on 'Aatmanirbhar Bharat' mission, a host of opportunities are in the offing for Indian steel sector as well as for the downstream industries.
The government has earmarked Rs 102 lakh crore for the infrastructure projects in the country over the next 5 years, she said.
"I find industry is not in a position to take complete advantage of these upcoming demands to the limitations in manufacturing and fabrication. The feedback we keep receiving from the infrastructure industry is that the desired thickness of plates is not available in the country which forces them to go out of the country for getting main components procured and fabricated in China and other countries. We require product development, " the official said.
Various types of steel products will be required in airports, railways, bridges, buildings and structures and the industry's attention must be towards production of new products which find application in these areas, she said.
Chaube further stated that the demand for rolled products is likely to rise manifold as the government is making efforts to start stalled projects and bring investment in oil and gas, railways, road development, and implementing Bharatmala project, PM Urja Ganga project, dedicated freight corridor project, Smart City project and Housing For All.
Some projects may require special type of flat and rolled products, thus a continuous dialogue and attention is must on product development, the official said.
"I think there is a very urgent need to critically evaluate the future requirement of steel and modernise and upgrade our facilities suitably," she said.
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