The Hindu Business Line : Paswan wants GoM on steel policy

THE Minister for Steel, Chemicals and Fertilisers, Mr Ram Vilas Paswan, has urged the Prime Minister to constitute a Group of Ministers for meeting the objectives of the National Steel Policy) that targets 110 million tonnes of domestic steel production by 2019-20.

"I have requested the Prime Minister, Dr Manmohan Singh, to set up a GoM to ensure co-ordination among various departments and Ministries which is essential for meeting the objectives of the NSP," Mr Paswan told presspersons.

To achieve the goal of 110 million tonnes of steel production by 2019-20, he said, 104 MoUs had been signed for setting up steel projects in various States.

These MoUs envisage an investment of more than Rs 2,30,00 crore, including FDI of over Rs 80,000 crore, which would mean substantial capacity addition in the steel sector.

The Steel Ministry's plan to turn the Steel Authority of India into a mega PSU by merging several smaller companies with it is, however, facing several roadblocks though the Ministry has given its in-principle approval to the plan, Mr Paswan said.

"Mahrashtra Elektrosmelt Ltd, a subsidiary of SAIL, wants to be merged with the parent company but SAIL wants Manganese Ore and Iron Ltd (MOIL) too to be amalgamated with it, but MOIL does not want that to happen. SAIL wants Rashtriya Ispat Nigam Ltd (RINL) under its umbrella but RINL does not want that. This is the situation we are facing," the Minister said.

Even the Andhra Pradesh Government does not want RINL to be merged with SAIL, as they feel that supply of steel in the State may suffer. We have to take the State's consideration," he said.

He, however, emphasised that the Centre favoured the mergers with a view to make SAIL a truly international standard steel producer. SAIL has already embarked upon its own expansion plan, envisaging an investment of over Rs 34,000 crore by 2012 to augment its production capacity to over 20 million tonnes.

On the merger of Nilanchal Ispat Nigam Ltd (NINL) with SAIL, Mr Paswan said that the Committee of Secretaries had already cleared the proposal and it could take another six months to complete the process.