18-07-2012, 11:39 AM
INDIAN STEEL INDUSTRY
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ABOUT INDIAN STEEL INDUSTRY
India is among the top producers of all forms of steel in the world. Easy availability of low cost manpower and presence of abundant reserves make India competitive in the global setup.
The steel industry in India has witnessed an increase in demand due to expanding oil and gas sector, huge spending on infrastructural facilities coupled with growth in housing, consumer durables and auto sectors. According to the World Steel Association (WSA), India was the fourth largest producer of crude steel during January 2010–September 2010 and produced 50.1 million tonne (MT) crude steel during this period. At present, with the Government's increased emphasis on infrastructure, it is estimated that the sector is poised for significant growth.
India has acquired a central position on the global steel map with its giant steel mills, acquisition of global scale capacities by players, continuous modernisation & up gradation of old plants, improving energy efficiency, and backward integration into global raw material sources. Major steel giants from across the world have evinced interest in the industry due to its phenomenal performance.
The economic reforms started by the Government since 1991 have added new dimensions to industrial growth in general and steel industry in particular. Licensing requirement for capacity creation has been abolished, except for certain locational restrictions. The Indian steel industry has been removed from the list of industries reserved for the public sector. Automatic approval of foreign equity investment up to 100 per cent is now available. Price and distribution controls have been removed from January 1992, with a view to make the steel industry efficient and competitive. Restrictions on external trade, both in import and export have been removed. Import duty rates have been reduced considerably. Certain other policy measures such as reduction in import duty of capital goods, convertibility of rupee on trade account, permission to mobilize resources from overseas financial markets and rationalisation of existing tax structure for a period of time have also benefited the Indian Steel Industry.
A lot of new steel plants have been set up in the country due to huge foreign investments and the state-of-the-art technology. Tata steel was the first steel plant established in the year 1907 in India. Some of the other steel plants in the country include Bhilai Steel Plant at Chattisgarh, Rourkela Steel Plant at Orissa, Durgapur Steel Plant at West Bengal to name a few.
Steel producers have signed 222 memorandum of understanding with the State Governments for a planned capacity addition of about 275.7 MT by 2020.
Construction and infrastructure' is the largest consumer of steel in India, accounting for 61 per cent of total consumption in 2010. The Government expects steel production to rise to 100 million tonnes per annum (MTPA) by 2019-20.
Government Initiatives:
100 per cent foreign direct investment (FDI) through the automatic route is allowed in the sector
Large infrastructure projects in Public-Private Partnership (PPP) mode are being formed
Government is encouraging research and development (R&D) activities in the sector
Reduced custom duty and other favorable measures
Government of India has framed the National Steel Policy (NSP) to encourage the steel industry to reach global benchmarks in terms of quality, cost and efficiency
ABOUT STEEL AUTHORITY OF INDIA
HISTORY OF THE SAIL:
THE PRECURSOR: SAIL traces its origin to the formative years of an emerging nation - India. After independence the builders of modern India worked with a vision - to lay the infrastructure for rapid industrialization of the country. The steel sector was to propel the economic growth. Hindustan Steel Private Limited was set up on January 19, 1954. The President of India held the shares of the company on behalf of the people of India.
EXPANDING HORIZON (1959-1973):
Hindustan Steel (HSL) was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956 and ultimately to Ranchi in December 1959.
A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from .158 MT (1959-60) to 1.6 MT. The second phase of Bhilai
Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.
The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the Parliament on December 2, 1972. On this basis the concept of creating a holding company to manage inputs and outputs under one umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company, incorporated on January 24, 1973 with an authorized capital of Rs. 2000 crore, was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an operating company.
Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial development of the country. Besides, it has immensely contributed to the development of technical and managerial expertise. It has triggered the secondary and tertiary waves of economic growth by continuously providing the inputs for the consuming industry.
SAIL TODAY
SAIL today is one of the largest industrial entities in India. Its strength has been the diversified range of quality steel products catering to the domestic, as well as the export markets and a large pool of technical and professional expertise. Today, the accent in SAIL is to continuously adapt to the competitive business environment and excel as a business organization, both within and outside India.
TYPE OF ORGANISATION:
Steel Authority of India' - a Government of India Enterprise and one of the largest and profit making public sector steel products manufacturing company.
Steel Authority of India produces for both basic and special steels for construction, engineering, power, railway, automotive and defense industries and caters to Indian and International markets. Steel Authority of India has five steel plants, one subsidiary, three special steel plants, multi marketing units at all regions and nine other specialized units to support growth and development of the Steel Industry in India. Its produces are Blooms, Billets, Slabs, Crane Rails, Bars, Rods & Re-bars, Wire Rods, HR Coils, Sheets, Plates, CR Coils & Sheets, GC Sheets, GP Sheets and Coils, Tinplates, Electrical Steel, Tubular Products, Pipes, Railway Products, Rails, Wheels, Axles, Wheel Sets.