Friday, August 7, 2009

Use current low prices of material and services to build infrastructure: Virbhadra Singh

The Minister for Steel Shri Virbhadra Singh has said coordination of the steel investment projects will be further streamlined to expedite major projects both in private and public sector. The Minister was delivering the keynote address at the leadership summit organized by Indian Chamber of Commerce here today. He said, an Inter Ministerial Group (IMG) has been formed to resolve various issues related to infrastructure requirements of the upcoming steel plants. The Minister said, the IMG seeks to serve as an effective interface between the producers and the suppliers of infrastructure services, the state governments and other stakeholders. 

Emphasizing that the steel industry is one of the largest users of infrastructure facilities like railways, roads, ports and power in the country, the Minister said, by the end of the Eleventh Five Year Plan (2011-12) around 320-325 million tonnes of materials will have to be transported annually by road and rail to support the projected production of over 100 million tonnes of steel in the country. Shri Virbhadra Singh said, steel industry alone accounts for around 25-26 percent of the overall usage of railway facilities by all users. Similarly, its share in usage of port facilities is estimated at around 25 per cent and in road facilities about 4-5 percent. He said, steel industry also accounts for around 5 percent of all power consumption in the country. The Minister said, expansion of steel production from the current level of 56-58 million tonnes to over 100 million tonnes by 2011-2012 will lead to massive expansion in the infrastructure required by the steel industry. 

He said, as railways remain the most cost-effective mode of transportation, the Dedicated Freight Corridors will augment rail transportation. National Highways Development Project and ports and shipping projects are being given utmost importance. Importance has also been given to ensure adequate financing for infrastructure projects both from domestic and external sources. 

The Minister also emphasized that the current low prices of input materials and services should be made use of to build infrastructure at low cost. This, he said, will help achieve the twin objectives of employment generation and economic revival along with long term objective of sustained economic development.

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