Gas Allocation to the Steel Sector
The Minister of Steel, Shri Beni Prasad Verma has said that a Task Force pertaining to Raw Materials for Steel sector constituted as a part of formulation of a ‘New National Steel Policy’ has submitted its Draft Report, wherein it has been mentioned that in view of curtailment of natural gas supply to gas based steel/ sponge iron plants, they may have to rely on costlier imported natural gas, which may adversely affect financial viability of these units and may also have an adverse impact on investment in downstream steel industry.
In a written reply in the Lok Sabha today he said, Ministry of Steel has brought the issue of curtailment in supply of natural gas to the existing gas based steel/ sponge iron plants to the notice of Ministry of Petroleum & Natural Gas with the request to take steps for continued supply of requisite gas to the gas based steel/ sponge iron sector in the interest of overall economic development of the country.
He said, the Government has constituted an Empowered Group of Ministers (EGoM) on Pricing & Commercial Utilization of Gas under New Exploration Licensing Policy (NELP) which, inter-alia, decides on allocation of NELP gas to different sectors. In its meeting held on 24.2.2012, it has taken note of the demand of natural gas for the Steel sector.
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