The Hindu Business Line : Govt to meet steel producers on issues hampering investments

New Delhi, Feb. 22 The Government has called for a meeting of the major steel producers and Chief Secretaries of five States next week to look into the issues hampering investments in the sector.

“Union Steel, Chemicals and Fertilisers Minister, Mr Ram Vilas Paswan, has convened a meeting of leading steel producers and State Chief Secretaries next week to sort out issues pertaining to their investment and expansion plans,” an official told Business Line.

He added that the Minister would also assess the progress made by the domestic producers in implementing their greenfield and brownfield projects.

The official pointed out that Chief Secretaries from Jharkhand, Orissa, Chhattisgarh, Karnataka and West Bengal, too, have been invited to participate in this meeting and share their views on translating these promised investments on the ground.

The companies invited to participate are Rashtriya Ispat Nigam Ltd, Steel Authority of India Ltd, JSW, Essar, Tata Steel, Ispat, Posco, ArcelorMittal, Bhushan Steel and Power Ltd among others.

“The Ministry is concerned that while the demand for steel is was growing at a double digit rate, the supply side is growing at less than 6 per cent.

“So, there is a need to bridge the demand-supply gap,” the official said. As per estimates, the Steel Ministry is envisaging an investment of around Rs 2,80,000 crore and production of more than 100 million tonnes by the end of 2011-12 fiscal.

The steel manufacturers have requested the Ministry to help remove the infrastructural bottlenecks that were impeding growth in the sector — especially on issues like railways, road and port connectivity to streamline distribution of their produce.

“The industry will be raising their concern on the issues of ensuring long-term raw material security and reducing ore exports to ensure raw material security,” an industry source said.

He also said that a couple of the producers have suggested that there should be a regulator for the mineral sector, especially on iron ore. “Their fear is that if iron ore gets exhausted, then their expansion plans may not fructify. We will also be talking to the concerned States in this connection,” the official added.

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