New fund to boost steel production

Riding on the buoyant steel production trend in the country, the Centre would launch a new fund for domestic producers. Called the "Steel Development Research Mission," the fund will have the government as the nodal agency.

"It is a move to streamline the research and development part of the steel industry, to produce quality steel in the most cost-effective way," said R S Pandey, secretary, ministry of steel, government of India.

The estimated cost of the mission would be around Rs 60-65 crore, and all the major producers in the country would be contributing to the fund, he added.

Pandey, however, said that the government would only act as the facilitator, without participating in the financial aspect of the project. No new institutions would be set up for the purpose.

"We would utilise the existing institutions to improve research and development, in a bid to increase the pool of skilled workers in the country, so that we can achieve our goal of becoming the second-largest producer of steel in the world by 2020," he added.

Pandey, who was addressing a seminar organised by the Confederation of Indian Industry, called for more public private partnership to enrich the existing research and development facilities in the country.

Meanwhile, speaking on the sidelines of the seminar, S K Rungta, chairman, Steel Authority of India Limited (Sail), sounded optimistic about reaching a solution to the Gua mines issue.

The mines were being blockaded by casual workers who demanded full-time jobs.

He said that Sail would absorb the casual labourers in phases along with the mine expansion, depending on requirement. Negotiations were on with the contract workers' union led by Rajesh Koda, the younger brother of Jharkhand Chief Minister Madhu Koda.