Rise in Rural Steel Consumption

Press Information Bureau

Government of India

Ministry of Steel

20-December-2012 16:46 IST

The Minister of Steel, Shri Beni Prasad Verma has said that Expansion of Steel Plants greatly depends upon increase in consumption of steel in India particularly driven by growth in the rural sector. As more than 70% of Indian population resides in the rural areas, there is a huge potential for increasing consumption in the rural areas. It is estimated that increase in per capita steel consumption by 1 kg. in Rural India will result in increasing steel consumption by 1 million tonnes per annum in the country.

In a written reply in the Rajya Sabha today Shri Verma said, with a view to widening its distribution network and to increase the reach of its products of mass consumption in rural areas, Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) have expanded their dealer network in the country. In addition, during the year 2011-12 SAIL launched a new “SAIL Rural Dealership Scheme” to expand its scope of business in rural areas (block/taluka) of the country with the primary objective of meeting the steel demands of the small rural consumers at block, and taluka levels.

He said, Steel is a deregulated sector and there is a competition among various Public Sector and Private Sector Steel companies. The PSUs are facing competition from private companies like Tata Steel, Essar Steel, JSW Steel, Jindal Steel and Power Ltd., Ispat Industries, Llyod Steel etc. Some of the steel companies in the private sector have added new capacities during the year 2011-12 and the current year and some are in the process of expanding their capacities. Besides this, all major steel producers in the country are having a strategy of retail sales and are increasing their presence in the interior areas. Certain secondary producers are also developing their own retail network, and, therefore, there is increasing competition in the area.

Shri Verma said, the Government has notified 16 steel products under the “Steel & Steel Products (Quality Control) Order” issued under the Bureau of Indian Standard Act 1986. The Order has already been enforced on all products covered under 9 standards, it has been partly implemented on products covered under 5 other Indian standards. The remaining products therein together with products covered under the 2 remaining standards will come into force w.e.f. 31.03.2013.

The Government has also issued the amended Steel & Steel Products (Quality Control) Second Order in September, 2012, according to which no manufacturer can manufacture, import, store for sale or distribute steel and steel products which do not conform to the standards and which do not bear the standard mark (BIS or ISI mark), the Minster added.

***

NSK/DB