Demand and Supply of Steel
The Minister of Steel, Shri Beni Prasad Verma has said that there exists a gap between domestic demand and domestic supply of steel. Due to relatively high growth in steel consumption than production, India became a net importer of steel since the year 2007-08. Certain special varieties of steel are imported to meet specific needs of end users. In a written reply in the Lok Sabha today he said, import of steel also takes place to meet seasonal and sudden demands. However, with continuous increase in steel production in the country the net imports have fallen to a level of 2.503 million tonnes in first 11 months of the current financial year.
The Minister said, the export duty on all grades of iron ore (except pellets) has been increased from 20% to 30% w.e.f. 30.12.2011 with a view to discourage its export. He said, in view of changed economic environment, both globally as well as domestically, Ministry of Steel has initiated the process of drafting the New National Steel Policy in place of existing National Steel Policy 2005. An Apex Committee, headed by Secretary, Ministry of Steel and consisting of representatives of Planning Commission, Ministries/Departments of Central Government and concerned State Governments has been constituted for monitoring the process of formulation of the New National Steel Policy. Four Task Forces have been constituted under the Chairmanship of eminent experts to study, analyze, consult and formulate draft policy documents in different aspects of the subject.