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Annual Report 2009-10

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Annual Report 2009-10 Annual Report 2009-2010 MINISTRY OF STEEL GOVERNMENT OF INDIA www.steel.gov.in Chapter CONTENTS Page No. I Highlights 4 II The Indian Steel Sector : Development and Potential 11 III Organisational Structure and Functions of the Ministry of Steel 21 IV Public Sector 29 V Private Sector 43 VI Research and Development 51 VII Energy and Environment Management 67 VIII Development of Information Technology 87 IX Safety 96 X Ship breaking 102 XI Welfare of Weaker Sections of Society 104 XII Vigilance 114 XIII Grievance Redressal Mechanism 124 XIV Implementation of Provisions of Persons With Disabilities Act, 129 1995 XV Progressive Use of Hindi 136 XVI Empowerment of Women 142 XVII New Initiatives/ Innovative Schemes 147 XVIII Recognition and Awards 156 XIX Promotion of Steel Usage 161 XX Corporate Social Responsibility 165 XXI Technical Institutes under the Ministry of Steel 175 XXII Implementation of the Right to Information Act, 2005 177 XXIII Development of North-Eastern Region 181 ANNEXURES 184 The production, financial and other related figures for 2009-10 (April-December 2009) are provisional. Hon’ble Prime Minister of India, Dr. Manmohan Singh presenting the Prime Minister’s Trophy for the best Integrated Steel Plant in India for SAIL’s Bhilai Steel Plant (BSP) to the Chairman, Steel Authority of India Limited (SAIL), Shri S.K. Roongta and Managing Director, BSP, Shri R. Ramaraju for the years 2006-07 & 2007-08, in New Delhi on February 15, 2010, in the presence of Hon’ble Union Minister of Steel, Shri Virbhadra Singh and the Hon’ble Minister of State for Steel, Shri A. Sai Prathap. CHAPTER-I HIGHLIGHTS STEEL SECTOR TRENDS n India is currently the 5th largest producer of crude steel in the world and is expected to become the 2nd largest producer of crude steel in the world by 2015-16. n India also maintained its lead position as the world's largest producer of direct reduced iron (DRI) or sponge iron with around 21 million tonne production in 2008-09. n 222 MoUs have been signed with various States for planned capacity of around 276 million tonne. n Major investment plans are in the States of Orissa, Jharkhand, Chattisgarh, West Bengal, Karnataka, Gujarat and Maharashtra. The details of the break-up of the MoUs signed by the State Governments of Orissa, Chattisgarh, Jharkhand and Other States are given in the table below: State No. of MoUs Capacity signed (in million tonne per annum) Orissa 49 75.66 Jharkhand 65 104.23 Chattisgarh 74 56.61 West Bengal 12 21.00 Other States 22 18.20 Total 222 * 275.70 *approximate Highlights of 2009-10 n During April-December 2009-10 (provisional), the following is the industry scenario as compared to same period of 2008-09: v Crude steel production was at 45.775 million tonne, a growth of 4 per cent. The Main Producers produced 17.35 million tonne during this period, which was a growth of 5.5 per cent compared to last year. The Major Producers produced 9.835 million tonne during this period, which was a growth of 27.9 per cent compared to last year. The rest i.e. 18.59 million tonne was the contribution of the Other Producers, which was a decline of 6.4 per cent compared to last year. v Pig iron production for sale in April - December 2009-10 was 4.248 million tonne, a 13 per cent decline over same period of last year. The Main Producers accounted for only 14 per cent of the same, the rest (86%) being the share of the Major and Other Producers. v In case of total finished steel (alloy + non-alloy) during April - December 2009 : l Production for sale was at 43.849 million tonne (mt), a growth of 3.2 per cent l Steel exports decreased by 36 per cent as it reached an estimated 2.099 million tonne while steel imports were at an estimated 5.21 million tonne, a growth of 16.6 per cent. l India remained a net importer of steel. l Domestic steel consumption was at 40.997 million tonne and increased by 7.8 per cent, indicating further strengthening of demand. n The total financial requirements covered in Demand No. 91 of the Ministry of Steel for Budget Estimate (BE) 2009-10, Revised Estimate (RE) and Actuals for 2009-10 and BE (2010-11) are summarised in the following table: 4 Annual Report 2009-10 (Rs. in crore) Demand BE 2009-10 RE 2009-10 Actual 2008-09 BE 2010-11 No. 91 Plan Non-Plan Total Plan Non-Plan Total Plan Non-Plan Total Plan Non-Plan Total Revenue 26.00 89.01 115.01 13.00 811.19 824.19 0.00 480.78 480.78 35.00 78.92 113.92 Section Capital 8.00 0.00 8.00 3.01 0.00 3.01 0.00 260.04 260.04 1.00 0.00 1.00 Section Total 34.00 89.01 123.01 16.01 811.19 827.20 0.00 740.82 740.82 36.00 78.92 114.92 (Gross) Major initiatives taken by the Ministry of Steel during the year Inter Ministerial Group (IMG) An Inter Ministerial Group (IMG) to monitor and coordinate various issues concerning major steel investments in the country has been constituted under the Chairmanship of Secretary (Steel) for conducting coordination meetings with the steel investors, concerned Central Ministries/Departments and the State Governments. A meeting of IMG was held on 25.8.2009. It was attended by all major PSUs and private steel investors and Ministries/Departments such as Railways, Shipping, Road Transport & Highways, Environment & Forest and Mines. Hon’ble Prime Minister of India, Dr. Manmohan Singh being presented a dividend cheque of Rs. 460.81 crore by Chairman, SAIL, Shri S.K. Roongta in the presence of Hon’ble Union Minister of Steel, Shri Virbhadra Singh. The then Secretary (Steel) Shri P.K. Rastogi is also seen in the picture (extreme right). Survey to measure domestic steel consumption n As the present per capita consumption in the country is only around 47 kg (2008) against the world average of 190 kg and that of 400 kg in developed countries, a study has been commissioned through the Joint Plant Commission (JPC) during the 2008, to estimate the per capita demand for iron and steel in the rural sector of India and to determine the factors those can contribute to its enhancement. 5 Export of iron ore n Ministry of Steel is of the view that Policy regarding iron ore export should aim at attracting investment in steel making capacity so that the value additions and export of finished products are promoted instead of exporting raw materials. n In the Group of Ministers (GoM) meeting to consider National Mineral Policy, 2007, there was an agreement that iron ore resources of the country should be conserved for the use of domestic steel industry. It was decided that although conservation of iron ore resources of the country is of paramount importance, the same may not be achieved by banning or capping the export of iron ore but by taking recourse to appropriate fiscal measures. This was approved by the Government. n Due to consistent efforts of Ministry of Steel, export duty has been imposed on iron ore. Initially in 2007, an export duty of Rs.50/- per tonne was imposed on iron ore fines upto 62% Fe content and Rs.300/-per tonne on all other varieties of iron ore. Subsequently, export duty was revised to 15% ad-valorem on all varieties of iron ore and thereafter to Nil export duty on iron ore fines and 5% ad-valorem export duty on iron ore lumps. The present rates of duty on iron ore exports w.e.f. 24.12.2009 are following: i) Iron ore fines (all sorts) - 5% ad-valorem ii) Iron ore other than fines(including lumps & pellets) - 10% ad-valorem Performance of PSUs and Companies under the Ministry n Profit after Tax (PAT) of the companies with this Ministry was around Rs. 7,772 crore during the year 2009-10 (upto December 2009). n The contribution of the companies with this Ministry, to Central and State Government exchequer by way of excise duty, customs duty, dividend, corporate tax, sales tax, royalty etc. was around Rs. 11,298 crore during the year 2009- 10 (upto December 2009). n The net worth of major PSUs under the Ministry of Steel took quantum leaps, indicating their robust financial health as summarised in the following table: (Rs. in crore) PSU Net worth as on 31.03.2004 Net worth as on 31.12.2009 SAIL 4659.00 32046 RINL 4852.00 12884 NMDC 1967.00 14052 MOIL 139.77 1491.37 MSTC 83.00 377.69 KIOCL 1389.16 1892.5 MECON (-) 257.91 117.82 Major initiatives in the PSUs Mega Expansion Plans of SAIL, RINL & NMDC Ltd. The Steel PSUs are in the midst of the capacity expansion plans. The major thrust of the modernization and expansion plans is to adopt the best modern technology, which in addition to being cost effective should also be energy efficient and environment friendly. n The progress of the expansion of SAIL, RINL and NMDC is monitored on a regular basis in the Ministry. As a consequence of monitoring, a number of systemic improvements have been put in place in project implementation. n The expansion and modernization programme of the Steel Authority of India Ltd. (SAIL) is underway at all its steel plants to enhance the hot metal production capacity.
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