SRMA STEEL NEWS

SRMA
Steel Re Rolling Mills
Association of India
www.sram.co.in

Steel Re-Rolling Mills

Association of India
www.srma.co.in Email : srmakol@srma.co.in

Sl. No,

1.

2.

3.

Name

Shri B.M. Beriwala,

Chairman
Shri Jagmel Singh Matharoo,
Vice Chairman
Shri Ramesh Kumar Jain,
Treasurer

4.

Shri Sanjay Jain

5.

Shri Kailasj Goel

6.

Shri G P Agarwal

7.

Shri O P Agarwal

8.

Shri S K Sharda

9.

Shri Sandip Kumar Agarwal

10.

Shri S. S. Sanganeria

11.

Shri Sanjay Surekha

12.

Shri R P Agarwal

13.

Shri S. S. Bagaria

14.
15.
16.
17.
18.
19.
20.
21.

Shri Girish Agarwal

Shri Goutam Khanna
Shri Suresh Bansal
Shri Rajiv Jajodia
Shri Bhusan Agarwal
Shri Mahesh Agarwal
Shri Sita Ram Gupta
Shri Ashok Bardeja

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CONTENTS
Executive Summary
The Present Scenario and Future Prospects of Indian Iron
and Steel
Key Imperatives Towards Realizing 2025 Vision
Second generation technologies for SRRM sector
Environment & Safety Focus
Labour & Legal News [Skill Development Mission Govt. of West
Bengal]

Taxation News
Event & Latest Steel News

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Presently Indian Steel industry is primarily based in raw material industry as for the production of one tonne of
steel, an integrated plant consumes 4 tonnes of raw materials. India with its abundant availability of high grade Iron
ore, the requisite technical base and cheap skilled labour is thus well placed for the development of steel industry
and to provide a strong manufacturing base for the metallurgical industries.
Indian Steel Industrys structure is comprises of several interdependent and interlinked segments for value addition,
broadly classified as the integrated or the majors producers and non-integrated or the Secondary Producers. India has
played a pioneering role in the recycling of scrap for the production of Steel through EAF/Induction Furnaces and
the rolling of both the Long and the Flat Products in Mini/Midi Mills at highly competitive prices.
Various scope for the reduction of production costs by the Secondary Sector through the technological upgradation,
particularly by the Electric Arc and the Induction Furnace Producers, through the conversion of Electric Arc
Furnaces to Twin shell Furnaces. Follow to the technological developments in the past decade, the non integrated
producers and the integrated compact Mills have emerged as low cost producers of Finished steel due to low capital
investment and breakeven points intense customer orientation and flexibility in altering the product-wise.
Vital job of steel producers should nurture the domestic market and the exports should not be at the cost of the
domestic industry. The U.S. Govt. has recently imposed a duty of 10% on the exports of the Melting scrap, to
improve domestic availability and stabilize prices and other countries have also adopted similar measures from time
to time. India as Global and manufacturing and outsourcing base. Apart from the vast domestic market, India has
also bright prospects to develop as a global manufacturing and outsourcing base for Iron and Steel based products.
The restructuring process at this critical stage be pushed through and economy opened up by the removal of all
bottlenecks and barriers and the projected investments on infrastructure development and housing, sharp growth of
Auto and Consumer Durables sector, foreign exchange reserves are indicative of sustained growth in Steel demand.
It is time for the steel industry to undertake modernization and expansion projects to cut the production costs and
prices as high Custom duties and prices retard industrial growth.
Indian steel industry has by and big operated in an insulated environment with high Custom Tariffs and Non-tariff
barriers. It must be realized that the competition changes the entire work culture, objectives and the efficiency of an
organization to achieve global competitiveness and several industries in India have already achieved this objective.
Indian industry therefore must endeavor and adopt effective measures to exploit the vast potential of the domestic
rural markets, expansion of the Manufacturing Sector and infrastructure development, to generate the demand for
steel products. The rise in the Indian per capita consumption even to the Asian average shall boost the demand for
Steel products by at least 100 million tonnes. It is therefore vital that the steel producers should nurture the domestic
market and the exports should not be at the cost of the domestic industry.
The Indian Auto and the Engineering Goods Sector with its inherent strengths has bright prospects to become an
integral part of the global production systems and multiply its current exports several folds in the coming years.
There is need for collaborative research between the Steel and Engineering industry for market development and
benchmarking with global standards of quality and prices to achieve the objective. The Govt. has thus to play a
pivotal role in providing the overall policy framework and coordination for the smooth implementation of
the development plans.
The policies focusing towards protectionism to competition and development, to break the vicious circle of high
prices and low demand. Indian steel industry has by and large operated in an insulated environment with high
Custom Tariffs and Non-tariff barriers. It must be realized that the competition changes the entire work culture,
objectives and the efficiency of an organization to achieve global competitiveness and several industries in India
have already achieved this objective. India has inherent comparative cost advantages in the production of steel.
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The steel industry is often considered to be an indicator of economic

progress, because of the critical role played by steel in
infrastructural and overall economic development. The per capita
usage of steel gives an indication of the technological
advancement of a nation.
The present status of the industry
India has one of the richest reserves of all the raw materials
required for the industry, namely land, capital, cheap labour, iron
ore, power, coal etc. Yet we are 5th in the world ranking for
production of steel. We produced 66.8 million tonnes in 2010-11,
while China, at the top of the list, produced 626.7 million tonnes.
Our per capita consumption of steel in India (at 50 kg per
annum) is well below the world average (at about 200 kg per annum) and much below that of the developed world
(around 350 kg per annum).
Vision 2020 of the Indian Steel Industry
The National Steel Policy 2005 aims at increasing the total steel production of the country to 110 million tonnes
per year (in 2019-20) from 38 million tonnes (in 2004-05). This was supposed to require a compounded annual
growth of about 7.3%. The total production in 2010 was 66.8 million tonnes. The compounded annual growth from
2005 to 2010 has been more than 9% which is better than the expected growth. But most of these are a result of the
brownfield expansion projects of the existing steel companies. But to continue with the same growth rate, we need
new Greenfield projects.
Currently Industry faced the problems
Many steel giants signed MoUs with several state governments (especially Jharkhand, Odisha, Chattisgarh and West
Bengal) for new projects but none of them have materialized. It has taken 5 long years for Tata Steels Kalinganagar
(Odisha) project to complete the rehabilitation and resettlement process. JSWs proposed Salboni plant (W.B) hasnt
been allotted the required amount of land, and moreover the government, recently, took control over about 400 acres
of land bought by the company because of a state rule that any outsider cant buy more than 24 acres of village land.
POSCO is facing massive resistance from the natives of Jagatsinghpur (Odisha) for land acquisition while many
other steel plants are awaiting aid from the government in terms of either land or infrastructure.
What is the effect we are facing due to this?
The steel industry has given rise to a good number of townships which are rich, advanced, well maintained and has
better lifestyles than the rest of the country. Jamshedpur, Vijaynagar, Bokaro Steel City, Rourkela, Bhilai,
Vishakhapatnam are just a few to name. There are many more cities waiting to be added onto this elite list. Other
infrastructural development (roads, railways, ports, power) would take place owing the development of the steel
industry. Huge amount of employment (10 lakhs jobs per year) would be generated because of this.
But this is sure to take longer than the speculated time if the present rate of land acquisition and the governments
listlessness continues. The government ensuring faster support (in terms of permissions, lands etc.) would mean a
faster growth rate of the country, and a step closer to becoming the superpower of the world. Thus one thing which
seems very clear is that if Vision 2020 needs to be achieved, then steel industry is where we need to focus.

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India has one of the largest reserves of goodquality iron ore globally. In
future, meeting domestic demand for iron ore will have to take precedence
over meeting export demand. In other words, India would need to leverage
its vast reserves to ensure consistent iron ore supply to domestic steel
companies at fair prices. There are two other factors that make raw material
prices critical to investments in steel plant: high cost of capital, and delays in
land acquisition and clearances. These factors put additional downward
pressure on return on steel investments. For coking coal, ramping up of
domestic production as well as securing overseas supplies will be critical to
meet Indias growing demand. Domestic miners should invest in enhancing
coal washing and beneficiation capabilities. Miners should also actively
acquire overseas assets to ensure lowcost availability of coking coal for steel companies. Indian steel companies
should focus their research and development efforts on improving coking coal productivity.
Streamline land acquisition and clearances processes explore the option of a cluster driven approach where the
government appoints a SPV as a nodal agency to acquire land and clearances; optimize the clearance process to
reduce number of touch points at the state and central levels. Innovative models need to be explored to lower the
lead times resulting from delays in land acquisition and clearance processes. One option to lower lead times can be
to follow a clusterdriven approach in which a Special Purpose Vehicle (SPV) is set up to speed up land
acquisition and clearances. Additionally, the clearance process needs to be optimized by reducing the number of
touch points at the state and central levels. Currently, the clearance process involves multiple levels of clearance
from state and central government agencies. This leads to longer lead times for projects. Simplification of this
process will go a long way in speeding up the overall process of setting up steel plants.
The steel industry is likely to be the backbone of Indias growth in future. The government needs to consider
providing the steel industry with infrastructure status. This will enable funding and borrowing from abroad at
cheaper rates. Additionally, lower taxation will further help improve return on investment, aiding the financial
closure process for steel plants. India needs to grow its construction output approximately four times over the next
12 years as it aspires to bridge the infrastructure gaps, spurring incremental steel demand. This can be achieved only
if the government speeds up execution through faster land acquisition and clearances. India should also look at
exploring necessary regulatory enablers to increase use of steel in construction.
Freight cost is an important component of overall landed cost, and therefore, it not only affects industry profitability, but also
affects the countrys relative cost competitiveness in world trade. In order to secure a freight advantage, India should prioritize
land infrastructure for transportation. Earmarking and investing in dedicated freight corridors would be a good step in this
direction. Additionally, timely and adequate supplies of power and water resources are critical enablers for realizing the vision.
India should focus on timely completion of power projects and ensure allocation of water resources to steel plants. Transforming
Indias growth path in steel would require a fundamental change in human resource management and development. For that
purpose, adequate funds should be deployed for setting up infrastructure for higher education and vocational training. Industry
institute partnerships should be promoted for inservice training of employees. Also, a closer collaboration with industry is
necessary to ensure that training imparted is relevant to the contemporary needs of the job.
The government can explore additionally employing policy measures like differential pricing of resources, setting up industrial
parks, incentivizing higher R&D, etc. to promote efficient utilization of resources. Indias steel sector needs significant capital
infusion and necessary technology enablers to realize its aspired growth. It is, therefore, necessary to use international industry
summits and conferences as platforms to publicize the goals of Indias steel industry and associated policy enablers to evoke
interest among global investors. Attracting global investors to invest in Indias steel story would not only assure access to low
cost capital, but would also facilitate appropriate technology partnerships to make Indias steel industry truly worldclass.

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Brainstorming UNDPs meeting on second generation technologies for SRRM sector. On 23rd May,
at Heritage Village of Manesar. Gurgaon, Haryana
UNDP is undertaking a program for energy efficiency in 300 rolling mills.
For this purpose they are recruiting persons for a period of 10 months,
who will visit all the 300 rolling mills on regular basis to ensure that the
concern rolling mills are actually implementing the technology proposed
by the UNDP. This programme is for a period of 10 months.
In addition to the programme for re-rolling industry, UNDP is also
initiating energy efficiency programme in the induction furnaces, these
being most power intensive. That existing burners have become obsolete
and require replacement by regenerated burners, which would not only
increase the production capacity but also reduce consumption of energy.
Understanding SRRM Sector in India

50% of rerolling mills are located in three clusters viz Mandi Gobindgarh, Bhavnagar & Raipur.
60-70% are scrap based mills with capacity as 1-3 TPH using primitive operating practices (fuel 75-100 kg/T,
scale loss 4-5%)
Balance 30-40% are ingot based with maximum capacity as 20 TPH (Average capacity 8-12 TPH, Fuel 60-80
kg/T, Scale loss 2-3.5%)
90% are pulverized coal fired.

Sale-purchase Scenario in SRRM Sector (Mandi Gobindgarh Cluster)

Purchase of raw material @ Rs.34500-35000/T

Sale price @ Rs.37500-38000/T i.e. conversion cost Rs.2500-3500/T

Fuel @ Rs.650/T

Electricity @ Rs.700/T

Product loss (assuming 3%) : Rs.1050/T

Labour wages & maintenance of various components in mill : Rs.500-700/T

The above breakup reveals that profitability could be realized only if better technological options be explored to reduce
mainly product loss besides energy consumption.
Measures to reduce Product Loss
Proper Furnace design:

Expertise for furnaces design and its manufacture available only for oil & gas as fuel (being used by only 5% mills in
the country) and for higher capacity ingot based mills based on local expertise.

Need for establishing scientific design and manufacturer for pulverized coal fired or multi-fuel fired furnaces
specifically for scrap based mills.
Proper air fuel ratio:

Fully automated PID controls (pressure/temp./O2) available for oil and gas fired mills

Need for developing semi automated PID controls for solid fuels and also effective pulverizer for proper fuel
preparation.

Development of handy/onsite fuel testing facilities.

Utilization of Product/Scale Loss
Scale loss in MGG Cluster : 45000 TPA (worth Rs.45-50 crore)

Present utilization through sale at Rs.3-4/kg.

Being exported to China for iron recovery.
Need to explore technology for setting up a common facility in MGG cluster e.g. sintering plant.

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To aim for an accident-free working environment is everyones responsibility.

Many steel companies have found it is possible to reduce dramatically the umber of
accidents at work by giving safety the necessary priority. Much can be done to
improve the situation further. The safety performance of our industry still varies
significantly between different businesses and between different departments in the
same business. The best show what can be achieved. This report is the result of an
exchange of ideas and experience between safety specialists and line managers from
IISI member companies around the world. It was commissioned by the IISI Board
of Directors and undertaken by the IISI Committee on Human Resources. It is
essential reading for all steel industry managers who wish to take up the challenge
of making the steel industry an accident-free working environment.
The Board of Directors comprises the Chief Executive Officers of the leading sixty steel enterprises around the world. The
Board approved the findings of the report and committed IISI to help its members achieve an accident-free working environment.
First, the publication of this report should be given wide circulation amongst managers in the steel industry. Secondly, a series of
regional seminars will be held to enable managers to share new ideas on improving safety. Thirdly, IISI will collect statistics
from its member companies to record progress on reducing accident rates.
This report was prepared by a special Working Group set up by the IISI Committee on Human Resources at the request of the
IISI Board of Directors. The report contains advice and recommendations on how to improve steel plant safety based on the
experience of senior line managers and safety specialists from IISI member companies around the world. It is addressed to senior
management, plant managers, safety managers and other specialist staff
in steel companies. The reports general remarks are supported by individual cases and examples.
Three components are essential to progress in steel plant safety:
1.
2.
3.

The condition of the work place environment.

The training and competence of employees.
The motivation and behaviour of employees.

The first two components have been discussed in previous reports on safety and, therefore, this report focuses on the potential of
the third element. The principal recommendations that appear in the report relate to the elements which are judged essential by
all the members of the Working Group:
1.
2.

Substantial commitment and leadership of safety by management - with both heartsand minds.
A change in the attitude and behaviour of individuals and working groups with respect to safety in all aspects of our
companies.
3. The elimination of a two-tier approach to safety.
For the first element, this requires:

A strong and visible commitment from the very top of the company and communicated to and shared by all levels of
management.
The setting of examples and the raising of standards by managers who must do themselves what they tell others to do.
Safety Slogan
An ounce of prevention is worth a pound of cure.
Be a safety hero: Score an accident zero.
Be aware. Take care.
Before you start, be safety smart.
Safety is as simple as ABC: Always Be Careful.
Safety awareness saves lives.

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Skill Development Mission Govt. of West Bengal

PLAN FOR SKILL DEVELOPMENT

Utilization of existing infrastructure.

Creation of New Infrastructure.

Setting up of monitoring mechanism at District level.

Initiatives taken by the Line Departments of Government of West Bengal

Technical Education & Training Department.
Labour Department.
Micro & Small Scale Enterprises & Textile Department.
Panchayat & Rural Development Department.
Food Processing & Horticulture Department.
Information & Technology Department.
Initiatives of Labour Department
Providing skill upgradation training to the pre-departure emigrant trainees.
Providing 50% fund assistance to the registered job seekers participating in vocational training.
Organizing mock test for various competitive examinations. Arranging vocational guidance/
counseling programme for assessment of job seekers ability to avail of the opportunities in
employment market.
Initiatives of Micro & Small Scale Enterprises
10185 nos of sericulturists have been trained up for skill upgradation in plantation, rearing &
reeling activities in the last FY.
275 micro & small entrepreneurs have been trained for skill development in the last FY.

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Providing skill upgradation training for Lac cultivators,

coir cultivators, bee keepers etc.
Arranged advanced skill training for 42 handicraft
artisans in last FY.
EDP Programmes have been arranged for 1830
enterprenuers in last FY.
About Rs. 1.32 crore has been spent for skill development in the last FY.
Initiatives of Panchyat & Rural Development Department
Skill training in:
Animal Resource Development in Dairy, Piggery, Goatery, Duckery, Poultry etc.
Horticulture, floriculture, vermicompost and other bio-manure preparation.
Apiary collection or processing of other forest products.
Food processing inclduing spice making.
Making items from leather, horns and other animal products.
Pottery, shoe making, bamboo/ cane product, mat, pati making.
Weaving, embroidery and garment making, jeweller making etc. Initiatives of Food Processing &
Horticulture Department
Skill Development training through different schemes like National Horticulture Mission,
ASIDE,RIDF etc.
3 years Diploma Courses are offered in two Govt. Polytechnics.
Skill training on pre & post harvest management, horticulture farmers, pre sowing techniques for
potatoes, high density cultivation of pineapples, organic farming in mango orchards, litchi orchards
organic farming of vegetables.
Skill training in production of exotic vegetables like broccoli, capsicum etc. Initiatives of Information &
Technology Department
One academic council is monitoring the syllabus & training for the manpower requirement of IT
industries.

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TAXATION NEWS
TAX PROPOSALS IN INTERIM BUDGET (Vote on Accounts) 2014-15
While there are no changes in direct tax rates the interim budget has proposed some relief in excise
duties to some sectors reeling in slow growth. This relief is by way of reduction in excise duty rate for a
th
period upto 30 June, 2014
Direct Taxes :

No Change in Income Tax and Other tax rates\

10 percent surcharge on super rich assesses having annual income of over Rs. 1 crore will
continue
5 percent surcharge on corporate with turnover of Rs. 10 crore or above
In case of foreign companies, surcharges increased from 2 percent to 5 percent
st
Moratorium provided on interest on education loan taken before 31 March, 2009
Other additional surcharges will also continue till new Finance Act is enacted.
Direct Tax Code to be taken forward by the new government

Indirect taxes

Excise duty towered by 6 percent on SUVs, 4 percent for car and commercial vehicles and 4
percent on scooters / motor cycles
Reduction in duties on chases and tailors also
Excise duty reduced by 2 percent for capital goods and consumer durables (electronic goods,
kitchen appliances, Laptop, AC etc.)
Excise duty mobile phones slashed and rationalized with / without Cenvat credit- it will be 6
percent with Cenvat credit or 1 percent without Cenvat credit
Rice brought at par with paddy on levy of Service Tax and loading, unloading, packing, storage
and warehousing of rice shall be exempt from service tax.
Blood bank to be exempt from Service Tax like clinical establishments
To encourage domestic production of soaps/ oleo chemicals, customs duty on non-edible
industrial oils, fatty acids and fatty alcohols rationalized at 7.5 percent
Exemption from CVD on imported road construction machinery withdrawn will help domestic
production.

Central Excise : Reduction In Excise Duty From 12% to 10% On All goods
falling under chapter 84 and chapter 85
Central Government has announced reduction in excise duty from 12% to 10% on all goods failing
under chapter 84 and chapter 85 of the Schedule to the Central Excise Tariff Act for the period upto
30.06.2014 which includes consumer durable (e.g. television sets, refrigerators, set top box, telephone
set, CD , DVDs washing machine, personal computers etc.) and capital goods (e.g. machineries, boilers,
turbines, forklift trucks, printing devises, electric motors and generators etc.) The rates can be reviewed at
the time of the regular Budget.

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Indian Pellet & DRI Summit 2014

Policy <> Price <> Trade <> Technology <> Networking
Organiser : SteelMint Events
Venue : ITC Sonar, Kolkata
Date : Friday 27 t h June,2014
Website : http://events.steelmintgroup.co m/index.php

Minerals, Metals, Metallurgy & Materials (MMMM) 2014

4-7, September 2014
Pragati Maidan
New Delhi
For Booking & Enquiries
International Trade and Exhibitions India Pvt. Ltd.
1106-1107, Kailash Building, 26 K.G. Marg, New Delhi- 110001, India
Tel: +91 11 40828282
Gagan Sahni: +919810036183
Varun Sharma:+91 11 40828208
Smita Roy: +91 11 40828217
Sandeep Arora: +91 11 40828227

9th Asian Stainless Steel Conference 4-5 June 2014

Organizer : Metal Bulletin Events and SMR
Venue
: Ritz Carlton, Hong Hong
Date
: 4-5 June 2014
Website
: https://www.metalbulletin.com/EventRegister/7128/Events/9th-Asian-StainlessSteel-Conference.html?Ev
--------------------------------------------------------------------------------------------------------------------------------------------

The 15th Guangzhou International Stainless Steel Industry

Exhibition
Organiser : Guangzhou Julang Exhibition Design Co. Ltd.
Venue
: China Import and Export Fair Pazhou Complex B Area First Floor
Date
: June 16-18, 2014
Website : http://www.julang.com.cn/
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STEEL NEWS
Modi Magic - India Inc looks up with hope after dismal FY 14
Change of regime has brought about concerted efforts by the Indian economy and industry to obliterate painful past with meagre
4.7% GDP growth lowest in last 25 years.
Riding the crest on soaring aspirations after the dismal economic performance the new government has suddenly dawned
optimism which remains to translate into concrete action and demand.
Even though some of key economic indicators showed blip in last quarter it was a case of too little too late. Government hemmed
by runaway inflation and fiscal deficit was engaged in liquidity squeezing to control nearly double digit inflation.
Adding to the growth challenge is an adverse global economic climate that is hemming in the country's exports growth. The
sector accounts for nearly a quarter of the domestic economy.
Meanwhile, hopes of an economic revival have attracted copious capital inflows, triggering a rally in the country's financial
markets. The BSE index is already the best performing equity index in Asia this year. The Indian rupee too, has hit an 11-month
high to the dollar.
New government has chipped in with 10 point agenda to unshackle the gigantic potential of Indian economy as follows
1. Build up confidence In bureaucracy
2. Education, health, water, energy & roads get top priority
3. Mechanism for inter-ministerial issues
4. Addressing concerns about economy
5. Stability and sustainability in government policy
6. Welcome innovative ideas. Give bureaucrats independence to work without pressure
7. Transparency in governance. E-auction will be promoted In tendering & government work
8. Infrastructure and investment reforms
9. Implement policy in time bound manner
10. People oriented system to be put in place ,stress on addressing peoples problems
The action oriented agenda smacks of clarity, certainty and timely implementation of policies is what the industry desires and
when translated into action, a sound basis will be set for investments to flow in.
Steel industry is looking with avid interest of unshackling slew of new infrastructure projects and thrust on housing leading to
spike in steel consumption. Union budget is likely to come up with sector wise tax stimulus to infuse life. At the same time the
government cannot let off liquidity surge when inflation remains recalcitrant. However infusion of FDI in key sectors will
provide the necessary liquidity for growth and demand generation.
In the housing sector target to provide house all the government staff as part of social responsibility by 2022 under PPP model
will certainly give fillip to steel demand.
Policy measures taken in short term is likely to translate into demand by Q3 and Q4, FY15 bringing some relief to economy and
industry. USD 1 trillion infrastructure investment plan of FYP 12 had proved to be non-starter in the last regime but with stable
and decisive government in place fireworks are round the corner.
Source Strategic Research Institute, Steel Guru
(www.steelguru.com)

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New steel minister Mr Tomar to review status of steel projects

PTI quoted Mr Narendra Singh Tomar, who took charge of Steel Ministry, as saying that he will review progress of steel projects
and will fix accountability on the officials, who are found to be responsible for delays.
He said that "We will review the current status of the projects and understand the reasons for their delays. If we find that the
delays are on the part of the officials, we will fix the accountability on them."
Mr Tomar said that the growth of the country depends on the growth of the steel sector.
He said that We will look into the problems being faced by the sector and make efforts to address them. If there are any
irregularities found in any department under his ministries, it will be throughly probed and those held accountable would not be
spared.
Source - PTI
(www.steelguru.com)

SAIL expects better steel demand in 2014-15

It is reported that Steel Authority of India Limited expects the current financial year to March to be better than 2013-14 on the
back of softening in input prices, relative stabilisation of the rupee and likely easier interest rates, which may drive steel
consumption in the country.
The company said at a post earnings conference call that the current financial year would be better. The input prices are also on
the lower side, the rupee has also centred and we feel that the impact of this would be available and the interest rates are also
coming down steadily
The company also expects to reap the benefits of the enhanced capacities from the current financial year where modernisation
and expansion is underway.
The management said that the companys net sales realisation for May will be down by INR 800 to INR 850 per tonne as
compared to March, for the June quarter, the product prices were down by INR 500 to INR 700 per tonne from the last quarter.
Acknowledging there was a lull in demand in the market post March, the company said that it had hiked discounts which is
offered to customers while keeping the base prices intact.
Source www.freepressjournal.in
(www.steelguru.com)

MOIL plans INR 600 crore ferroalloy plant in Bhilai

Times of India reported that PSU Manganese Ore India Limited is planning to forge a three way joint venture with Steel
Authority of India Limited and Rashtriya Ispat Nigam Limited to set up a ferroalloys plant at an investment of over INR 600
crore at Bhilai in Chhattisgarh state.
A source in the ministry of steel said that "Originally, there were plans to strike a separate JV with SAIL and RINL, with a plant
each at Bhilai and Bobbili in Andhra Pradesh. The Andhra plant could not take off due to the power crisis in the state. At the
same time, suitable bids did not come in for the Bhilai venture. Now, it has been finally decided to have a common plant at
Bhilai, where SAIL has its unit."

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A source said that the plant will have a capacity of 150,000 tonne per annum. This will be advantageous to both MOIL and the
steel makers. The former will get an assured market while the latter will get an assured supply of ferroalloys an essential
ingredient in steel making.
The source said that earlier, MOIL planned to have 50% stake in each of the JVs. Now, the modalities are still being worked out
but a part of the project will be funded with debt.
Source - Times of India
(www.steelguru.com)

Indian Iron ore Mining Mess - Major hurdles ahead for Odisha miners
Business Standard reported that although the Supreme Court, which ordered the shutdown of mines involved in
irregular mining in Odisha on May 16th, has asked the Odisha government to decide within 6 months on whether or
not to extend their leases, the imbroglio is likely to continue longer than that.
After the court order, a high powered committee of the state government recommended the renewal of the leases of
13 of the 26 mines provided they fulfilled three conditions.
1. Pay the penalty for excessive mining
2. Get permission for total diversion of the forest land inside the lease area, instead of seeking forest diversion in
parcels
3. Get approval for using tribal land
The miners hope to get around the first condition by filing an affidavit stating that they would pay the penalty if the
court orders them to do so, given that the matter is sub judice. Odisha had imposed a fine of INR 65,500 crore on
over a hundred miners for extracting more than the permitted ore between 2000 and 2010.
It's the other 2 conditions that have the miners worried. Earlier, mine-owners would seek diversion of forest land in
parts, as and when they required the area within the lease boundary to expand their mining operations. Now,
according to a circular issued by the Union ministry of environment and forest, it is mandatory for them to get the
ministry's nod for diversion of the entire forest land within their lease area.
Getting approval for using tribal land within the lease area is another big concern. Since 2002, the Odisha
government has disallowed sale or leasing out of tribal land to non-tribal persons. Hence, those mine-owners who
had not taken possession of the tribal land within their lease boundary before the cut-off date and were mining the
land by paying a rent to the tribal land-owners now find themselves in the soup. A mine owner said that "Getting a
clearance for the entire forest land in one go will be a Herculean task. Given the pace at which forest clearances are
given, this will take three to 5 years."
Source Business Standard
(www.steelguru.com)

Steel Ministry suggestions to new government in India

Business Standard reported that diluting PSUs' stake to 51%, ensuring raw material security to steel makers and
steps to boost production are among a dozen suggestions by the Steel Ministry for the new government. The
presentation comes ahead of Mr Narendra Modi led BJP government taking charge.
In a presentation for the Cabinet Secretary, the ministry suggested that the new government should bring down
stakes in steel PSUs to 51% and utilise the proceeds for development. Steel Authority of India, Rashtriya Ispat
Nigam, iron ore miner NMDC Limited, manganese ore producer MOIL Limited and pellet maker KIOCL Limited are
the major PSUs under the administrative control of the Steel Ministry. Government has 80% stake each in SAIL,

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NMDC and MOIL. RINL and KIOCL are yet to be listed. It can rake in a whole lot of funds by pruning its stakes down
to 51% in these companies.
The ministry has also suggested that there is a need to reform the current raw material policy and allot captive mines
to steel producers so that they meet at least half of their long-term requirements. There is also a need to introduce
single-window mechanism for streamlining the allocation of raw materials.
It was also stated that there is need to create special mining zones through a special legislation and prepare
comprehensive environment, forest management plans for areas declared to be bearing raw material like iron ore and
coal. The ministry also suggested that initiatives should be taken to raise country's steel production capacity to 300
million tonne per annum within the next 10 to 15 years from around 100 million tonne per annum now.
It said that to achieve this goal, special purpose vehicles should be created in collaboration with state governments to
fast track land acquisition and statutory clearances. Officials said that In line with power sector, which is entitled to
duty-free imports of gas, steel sector should also be allowed to import critical raw material like iron ore, natural gas
and scrap without any duty.
Source Business Standard
(www.steelguru.com)

India : CG Update, New VAT/CST may benefit small & Medium Scale Steel Makers
According to CG Budget announcement w.e.f Apr 2014 the VAT/CST charges implemented as per the
industry capital categorization. The steel industry falling under the small scale (capital less than 1 crore)
and medium scale (capital less than 10 crore) is being charged by 3% VAT. However large scale (capital more
than 10 crore but less than 100 crore) industry is being charged by 5% VAT.
(www.steelmint.com)

Indian 8 core industries post 4.2pct growth in April

According to the core sector data released by the Indian commerce ministry on the eight key industries, coal, crude oil, natural
gas, refinery products, fertilisers, steel, cement and electricity, has grown at 4.2% in April 2014
April 2014 data
1. Cement production Up by 6.7%
2. Electricity generation Up by 11.2%
3. Natural gas production Down by 7.7%
4. Crude oil production Down by 0.1%
5. Fertilisers Up by 11.1%
6. Coal Up by 3.3%
7. Petroleum refinery product Down by 0.1%
8. Steel output Up by 3.1%
The growth, though indicates an uptick in the economic activity, it is also due to a weak base in the last fiscal, which witnessed a
growth of 3.7 per cent only.
Source Strategic Research Institute, Steel Guru
(www.steelguru.com)

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