Thursday, November 5, 2009

MOS for Steel Sh. A Sai Prathap calls for Increasing Energy Efficiency and Productivity in Steel Sector
  
The Minister of State for Steel Shri A. Sai Prathap today urged the Conference of Indian Industry to play a major role in coordinating best use of Modern State of Art technology in steel sector. He said the steel industry should reduce energy consumption from 6.2 giga calories per tonne to world average of 4.2 giga calories and if possible even lower. It should also reduce water consumption per tonne of steel produced by 50%, improve productivity five folds from present level of 50 kg per person, in next two decades and focus on usage of low grade iron ore, non-coking coal and reduction in emissions. The Minister was speaking here today after inaugurating the Steel Summit organized by the CII. The theme of the Summit is “Advantage India – An enabling framework for growth”.

Shri Sai Prathap also urged the steel industry to collaborate with the government to create a Technology Fund which will open the doors towards a new generation in the Indian steel sector. The Minister said development of human resources to meet the specific future needs of the steel sector is an important issue. When the steel capacity in the country is doubled, in the next five years, there would be a similar need for technical manpower. Creation of institutional arrangement to provide the Technologists, Skilled manpower and continuous updation of skill and knowledge, is the need of the day.

Addressing the Conference the Steel Secretary Shri Atul Chaturvedi said that the issue of land acquisition is a major challenge for new steel projects. But they can be addressed through proper rehabilitation measures. Deals for acquisition of natural resources like iron ore and coal assets overseas have to be concluded urgently. He said problems like energy, competitiveness and technology upgradation have to be looked at from larger perspective.

Addressing the gathering the Chairman of Steel Authority of India Ltd. Shri S.K.Roongta outlined major challenges facing the sector. He said while technology upgradation, improving energy efficiency, increasing productivity and need for innovative R&R policy remain the biggest challenge, a large untapped rural market remains a big opportunity. He said the 11th plan proposal for 500 billion dollar expenditure on infrastructure will push up the demand for steel substantially.

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