Vol. 36 No. 6 November, 2016

Message by Secretary ...... 05

Chairman’s Desk...... 06

Article

Strengthen Steel Sector to Pave Way for Efficient ...... 7 Economic Growth Cycle by Dr. U. D. Choubey

An Overview of Steel Sector: Challenges and Future Outlook...... 12 by P. K. Singh

Opportunities & Challenges in Steel Sector ...... 16 by P Madhusudan

Iron Ore Resources in – Exploitation Through ...... 20 Beneficiation & Pelletization and its Challenges by Malay Chatterjee

Development of Manganese Ore Industry in India...... 24 by Mukund P. Chaudhari

MSTC makes giant leap to e-commerce sector...... 27 by B.B. Singh

Steel Usage and Relevance of HSCL in Steel Sector...... 29 by Moyukh Bhaduri

Indian Steel Industry: A Growth Story in the Making...... 33 by Ashima Tyagi & Dr. Sanak Mishra

A few thoughts on Indian Steel Industry...... 38 by Sushim Banerjee

To be Steel Strong...... 43 by Vineet K. Choudhary

World Steel Association Share Concern over Rising Steel Production...... 47 by Kunal Bose Vol. 36 No. 6 November, 2016 Annual Subscription:Rs. 500/- Total Pages:116 A. S.Khan PUBLISHER Nisha Sharma EDITOR K. N.Dhawan, U.K. Dikshit P. K.Sinha, S. A.Khan, Dr. U.D. Choubey ADVISORY BOARD &

Consulting Editor

GGM (Corp. Affairs) GGM Head (HR&CC) , Adviser (Programmes)

Adviser (CC) , Director General Contents PSE News...... Steel Pavilio n at IITF2016...... in CICAnnual Convention Special Technical by Session Public Enterprises ...... Sector Programme Place...... onGovernment e-Market Public Procurement SCOPE by highlights PSEsin...... commendable performance for Board Approved Relations Policy Media by PSEs M SCOPE News by Abhisar Jain ...... &ChallengesinSteel Sector Opportunities by Gaurav Choudhary onSteady Growth Steel Path Industry Indian ...... edia Relations Conclave for CEOs&Spokespersons:SCOPE ......

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63 61 60 59 56 53 50 Kaleidoscope November, 2016 5 CHAIRMAN’S DESK

During the two days convention, an exclusive session on “RTI and Public Sector Undertakings” was held where SCOPE and PSEs got an opportunity to highlight their best practices that have enhanced the standards of corporate governance in PSEs and created a good brand of PSUs. The concerns of PSEs with regard to RTI were also raised which included increase in number of applications, frivolous and vexatious applications, analysis of RTI applications and widening the definition of ‘public money’ so that all enterprises, be it Public or Private could be brought under the ambit of RTI. Strengthening the capacity building of the institution of CIC (Central Information Commission) was also emphasized. These initiatives will further strengthen the faith and t the outset, SCOPE and Public Sector confidence in the Act, SCOPE also on behalf ofall Enterprises welcome the recent demone- PSEs confirmed its all out support in this regard. tization of currency by the Hon’ble Prime A With the growing abundance of social media, CEO Minister of India. This will also be beneficial for Public Sector at large as the quantum of procurement and media spokespersons need to be sensitized in PSEs alone is running into lakhs of crores and is about the ever changing media matrix to positively growing at the rate of 10 percent. The move will bring represent PSEs. During the recent Media Relations efficiency, liquidity in the country’s economy and in Conclave for CEOs and Spokespersons organized turn less capital cost, more Capex, more employment by SCOPE, it emerged that PSEs need to embrace generation and level playing field for Public Sector the digital media platform in order to promote compared to Domestic and Global competitors. Prime Minister’s vision of e-governance through Digital India initiative. They need to build a Free flow of information is indispensible for strong relation with media and also create synergy strengthening the basic tenets of democracy and among themselves to thwart negative publicity transparency. Right to Information Act (RTI Act) and also to create a brand image for themselves. It has provided a strong foundation for a transparent was also desired that PSEs should come out with a governance system by empowering citizens to access board approved media policy in order to establish information from public authorities. efficient and effective communication channel with The Central Information Commission organized the media. A brief coverage of the Conclave is covered its 11th Annual Convention recently which was in this issue. inaugurated by the Union Home Minister Shri Steel industry is one of the most significant industry Rajnath Singh and he also launched e-Court. The for the growth and competitiveness of our country. convention organized with the aim to take stock The government is investing massively for developing of the success and short comings in effective a robust infrastructure for sustained development implementation of the Act was also addressed by of our economy. Driven by rising infrastructure the Lt. of , Shri Najeeb Jung, the development, Indian Steel Companies are going Minister of State for Development of North Eastern to play a major role in meeting the growing Region (I/C), PMO, Personnel, Public Grievances demand of steel. & Pensions, Atomic Energy and Space, Dr. Jitendra Singh and Central Information. Commissioner, Considering the importance of steel industry, this Mr. R. K. Mathur. It was attended by present and issue of KALEIDOSCOPE is dedicated to Steel Sector former Central Information Commissioners and which includes articles from PSEs in the steel sector State Information Commissioners, senior officials and experts in the area. Hope our readers will find from government, public sector, eminent panelists the issue useful and informative. and expert in the area. During the session, it was highlighted maximum possible information is being made available by the government and its agencies to achieve transparency and better governance. Among other issues, it was also emphasized on the need for a single window mechanism with respect to RTI Nirmal Sinha applications. Chairman, SCOPE

6 KaleidOscope November, 2016 ARTICLE Strengthen Steel Sector to Pave Way for Efficient Economic

Growth Cycle Dr. U. D. Choubey Director General, SCOPE

teel constitutes the back- industrial sector. Presently, the of December 2015. However, bone for economic growth sector contributes 2% to India’s despite of an adverse global en- Sof any country. Its strategic GDP and employs 6 lakh people. vironment for steel, India suc- significance can be seen from the The sector also holds 6% share in ceeded in maintaining steel pro- fact that it provides the funda- industrial production. This per- duction growth rate (year on mental framework and structure centage is likely to increase with year) of 7% during the 5 months for all plausible development improvement and recovery of period of April 2016 to August parameters of the economy, be infrastructure and automobiles 2016. This is in sharp contrast to it industrial or infrastructural. sectors. 2.3% contraction of production of Historically, it has been seen that steel in China which is the largest level of industrial growth in a Global impact on Indian producer of finished steel. country is in direct correlation to Steel Industry However, despite of a positive the growth of its steel sector. The global steel sector has been growth rate and EBITDA (i.e. Steel industry in India has also ex- witnessing falling production earnings before interest, taxes, perienced an evolution not only due to universal decrease in de- depreciation and amortisation), in its policies but also production. mand vis-a-vis excess supply of Indian steel sector has been ex- Increasing modernization and steel. This is evident from con- periencing stress and fall in con- industrialization necessitated the traction of world steel production sumption of domestic steel due country to expand its produc- by 2.8% during 2015 and reduc- to increase in imports at cheaper tion manifold so as to accommo- tion of global capacity utiliza- prices. For this reason the domes- date and promote growth of its tion levels to 64.6% in the month tic industry has been forced to

Kaleidoscope November, 2016 7 ARTICLE

construction sector, increase in investment in infrastructure sec- tor and positive growth in auto- mobiles sector. Statistically, steel demand in India is expected to grow by a healthy 5.4 % to 6% in FY 2017 as against world steel de- mand of 0.4 %. Also, international bodies like the World Steel Association have projected an upward growth for the domestic steel industry due to low oil prices, the reform momentum in the country and introduction of policies to in- crease infrastructure and manu- take series of price cuts which has • This was further accentu- facturing output. led to a severe margin squeeze. ated by rapid deteriora- This has not only led to reduction tion of emerging economies Issues and Challenges for in production but also increased like Brazil and Russia and Indian steel sector financial burden on the produc- strengthening of the dollar The steel industry has been the ers/ suppliers as they are unable making it more cost effective priority sector for the govern- to pay off their debts due to weak for them to shift to Chinese ment and hence has always been business climate. steel in comparison to Indian given strategic importance. Time steel resulting in decline of de- Statistically, production of steel mand for Indian steel. and again the government has in- decreased by 2% in comparison troduced slew of policy measures to previous year 2014-15. Also, • Free trade agreements signed to provide support to the sector. exports of Indian steel decreased by India with Japan, South However, despite of the same, by 29.7% whereas imports in- Korea and other countries to there are certain challenges that creased by 29.2%, making India a allow steel imports at neg- the steel factors faces from time ligible to zero percent duty net importer of finished steel. to time. also contributed to an increase Amongst multiple reasons for a of 30% in import of steel in Raw Material Issues fall in global steel market, rea- 2015-16. sons that have contributed to rise • Ease of availability and qual- in imports are: However, the industry has seen a ity of raw materials are crucial • Domestic demand of steel in silver lining after the government in determining the competi- China decreased manifold due intervened and imposed restric- tive growth of any industry. to steep decline in construc- tions on rampant imports. Few This is of utmost importance tion, housing and infrastruc- of such initiatives have been with for an input-intensive indus- ture investments in the coun- respect to imposing minimum try like steel. try. To counter this situation, import price on specified grades • Iron ore is one of the key raw the Chinese Government of- of steel at prices below marginal materials required for extrac- fered multiple export benefits cost from exporting nations, im- tion of steel. However, over to its steel industry enabling posing anti dumping duties, en- time and growing export it to export steel at cheap pric- hancing export duties on various market of iron ore, selling of es. This move made import grades of steel etc. iron ore abroad has gained of steel from China cheaper The situation has further im- momentum leaving it in short as compared to use of Indian proved with an upward move- supply for domestic consump- steel thereby increasing im- ment of demand in steel within tion. Hence, it is imperative ports into the native country. the country due to recovery of the to conserve the ore for growth

8 KaleidOscope November, 2016 ARTICLE

in domestic production base To mitigate the global place to another. of steel. downfall in price it • In order to develop seamless • However, conservation should and efficient network for in- is a necessity to use not adversely affect the ex- frastructure, it is imperative porters of iron ore. Hence, this effective technology to have friendly but effective should be done in a phased and efficient manpower policies for clearances with re- and planned manner so as to spect to land acquisition, envi- enable the exporters of ore to one’s advantage so ronmental clearances etc. to re-establish their business as to rationalise on the • It is of utmost importance that models leading to a win-win cost of production in infrastructure linkages should situation for all. be developed with futuris- order to be competitive • In addition planned invest- tic capacities in mind so that ment needs to be made in min- in the global market. they are able to support heavy loads and requirements of ing of iron ore so as to increase Also, the Indian steel steel industry for a long term the overall base of raw mate- horizon. rial. This can be done by im- producers have to provising technology and de- create a distinctive Technological Issues veloping infrastructure so as brand image for to make underground mining • A significant gap exists be- more efficient and effective. themselves by engaging tween technical specifica- tions and equipments used in aggressive brand • Another vital raw material by Indian steel sector and the for steel production is coking promotion basis global benchmarks for best coal. However, this ingredient practices in steel sector. has limited availability in the delivery of quality • In order to bridge this gap, domestic market resulting in product and seamless the steel sector needs to ac- heavy import dependence of after sales delivery tively invest in technology so the steel producers for procur- service. as to constantly innovate and ing coking coal which in turn develop state of the art tech- impacts their costs heavily. At nology which would not only present domestic steel makers benefit steel makers in terms Infrastructural Issues meet 70% of their coking coal of increased production but requirement through imports. • Infrastructure plays a crucial also in terms of better quality, role in steel sector. Efficient in- • In order to address this issue it better cost management and frastructure not only ensures efficient prices. is imperative that the available effective extraction of raw • Appropriate and latest tech- reserves of coking coal should material for steel production nologies should be developed be used judiciously and with but also ensures ease in avail- with respect to raw material utmost caution. ability of raw material to steel extraction/ availability, im- plants. • Also, government should look provement in process perfor- at their agreement with major • On the sale side, efficient in- mance and developing quality or key coking coal supply- frastructure facilities ensure product so as to achieve global ing countries so as to curb the timely supply of steel to its comparable benchmarks. volatility due to prevalence of dealers in the primary and • In order to obtain high level international prices. secondary market. of technical efficiency, it is • Also, government should • Hence, it needs to be ensured imperative that sufficient in- help PSUs to acquire coal as- that there are proper linkages vestment in terms of time and sets abroad either indepen- with respect to railways, ports money should be made in re- dently or in collaboration with and roadways for transporta- search activities by individual each other. tion of raw material from one entities so as to constantly

Kaleidoscope November, 2016 9 ARTICLE

operating PSUs in India in 2014- 15. PSUs under this sector alone employ over 1.5 lakh employees which is 12% of the total em- ployment by CPSEs in 2014-15. Besides, few of the ambitious projects of steel PSUs over long term horizon include: • JV between SAIL and Arcelor Mittal SA to manufacture high-end steel products which could be used in defence and satellite industries. • JV between SAIL and Arcelor Mittal SA to set up an automo- tive steel manufacturing facil- develop and upgrade the tech- Nigam Limited, Hindustan Steel ity in India. nology thereby improving in- Works Construction Limited, • NMDC plans to invest INR dividual performances which MSTC Limited, MOIL Limited 40,000 crore (US$ 5.96 bil- would lead to improvement in and Birds Group (now bifur- lion) in the next eight years performance of the sector as a cated into Eastern Investment to achieve mining capacity of whole. Limited, OMDC and Bisra Stone 75 Million Tonnes Per Annum Lime Company Limited). These (MTPA) by FY 2018-19 and 100 Steel PSUs 10 PSUs contributed 20% to total MTPA by FY 2021-22. steel production of the country PSUs have been termed as the • NMDC Ltd also plans to set during April-December 2016 as ‘temples of modern India’. Their up a Greenfield 3-million compared to 19% in 2014-15. contribution to the Indian econ- tonne per annum steel mill omy has been beyond parlance Most of steel PSUs have laudable in Karnataka jointly with the both economically and socially. achievements. To exemplify, SAIL state government at an esti- They have been the pillars for the is not only the largest PSU in steel mated investment of Rs 18,000 Indian economy in the toughest sector but also largest producer crore (US$ 2.67 billion). of times be it revamping India of steel in India and 24th largest post independence or the most steel producer in the World. It Besides financial performance recent being recession of 2008-09. owns five integrated steel plants, and ambitious plans, steel PSUs Given their strategic importance, 3 special plants and 1 subsidiary. also outshine in their CSR contri- it was but natural for the govern- RINL on the other hand is the bution. They have been actively ment to develop PSUs under this first shore-based Integrated Steel contributing to the CSR fund even sector too. Plant in India and one of the lead- much before the mandate of 2% At present there are 10 PSUs ing producers of long steel prod- was prescribed by the Companies under the administrative con- ucts. NMDC has the distinction of Act 2013. trol of Ministry of Steel namely being the largest producer of iron The PSUs conduct business in Limited ore in India. MECON Limited ex- a way so as to produce social, (SAIL), National Mineral pertises in Design, Engineering, environmental and econom- Development Corporation Consultancy and Contracting ic benefits to communities (NMDC), Kudramukh Iron Ore services for setting up Greenfield where they operate. This helps Company Limited (KIOCL), and Brownfield Projects in met- in achieving social objective Rastriya Ispat Nigam Limited als, energy and infrastructure without compromising on the (RINL), Metallurgical and sector. economic frontline of the com- Engineering Consultants India Further, steel PSUs contributed panies. All this leads to not only Limited (MECON), Ferro Scrap 9% to overall net profit of all creation of infrastructure but a

10 KaleidOscope November, 2016 ARTICLE healthy relationship between India is World’s third However, with increased invest- natives and the company there- ment in infrastructure, recovery largest steel producer by making the latter’s working of infrastructure and automo- smooth. (after China and Japan) biles sector, steel consumption is During April to December 2016, and largest producer likely to rise. In addition to the steel PSUs spent INR 126.14 above, slew of policy and reform crores on various CSR activities. of direct reduced measures with respect to agri- They have engaged themselves iron (DRI)/ sponge culture, development of smart with various programs relat- iron in the World. The cities, thrust on Make in India, ing to literacy, Swachh Bharat, increase of FDI in various sectors health care, education, skill en- country is also the including defence manufactur- hancement, sanitation and water third largest consumer ing, focus on start ups and new facilities, rural development, en- entrepreneurs, start-ups etc. is of finished steel. vironment protection etc. Few of likely to augur well for the Indian CSR initiatives worth mentioning Despite of globally Steel Industry particularly Public include development of Model adverse situations, Sector steel units, which are al- Steel Villages, providing educa- ready in expansionary mode. tional facilities to peripheral vil- India produced 91.46 Given the aforesaid scenario, steel lages and weaker sections/ tribes Million Tonnes of crude consumption is expected to reach in the areas where the PSUs oper- 104 MT by 2017 and steel produc- steel in 2015-16. The ate, providing network of roads tion is expected to increase 300 so as to connect remote villages actual consumption MTPA by 2025. to mainstream to provide easy of steel comes to Hence, it would not be wrong access to water facilities, conduct- to say that the steel industry has 58.94MT which 4.4% ing regular health camps to create great potential for growth in the awareness and providing medi- higher than 2014-15. coming years however it has to cal facilities at regular intervals, At present, India has go that extra mile to bounce back construction of sanitation facili- and grow. capacity utilisation of ties etc. To mitigate the global downfall 77% (during 9 months in price it is a necessity to use ef- Future Prospects for India ending December fective technology and efficient and way forward manpower to one’s advantage India is World’s third largest steel 2016) as against global so as to rationalise on the cost of producer (after China and Japan) utilisation of 68%. production in order to be compet- and largest producer of direct re- itive in the global market. Also, duced iron (DRI)/ sponge iron in the Indian steel producers have the World. The country is also the of the lowest per capita consump- to create a distinctive brand im- third largest consumer of finished tion of steel in the World despite age for themselves by engaging steel. Despite of globally adverse the fact that iron and steel making in aggressive brand promotion situations, India produced 91.46 is perhaps one of the oldest in the basis delivery of quality prod- Million Tonnes of crude steel in country. India’s present per capita uct and seamless after sales de- 2015-16. The actual consumption consumption of steel is far below livery service. A combination of of steel comes to 58.94MT which 100 kg while the global average is reduced cost, better product and 4.4% higher than 2014-15. At pres- little over 200 kg. This is primar- quality after sales delivery would ent, India has capacity utilisation ily owing to delays in execution definitely able the Indian steel of 77% (during 9 months ending in construction projects and clear- producers to carve out a niche for December 2016) as against global ance of pending projects besides themselves thereby benefitting utilisation of 68%. lower demand for consumer du- not only the steel industry but the On the downside, India has one rables and automobiles. economy as a whole.

Kaleidoscope November, 2016 11 ARTICLE An Overview of Steel Sector: Challenges and Future Outlook

P. K. Singh Chairman, SAIL

Overview expected growth in steel demand of the Government’s concentrated Globally, Steel is one of the most of 5.4% during 2016 and 5.7% move to make India a stronger critical commodities today and during 2017 as per World Steel economy. Incidentally all these it plays a elemental role in the Association (WSA) estimates. initiatives are steel intensive. development of modern society. This optimism is substantiated Currently, India’s steel consump- Steel is a smart material with by India’s ambitious infrastruc- tion is at a level of 60.8 kgs per smart properties of recyclabil- ture development programme capita as compared to the World ity, reusability, sustainability, for which the Government has average of 208 kgs per capita. This and eco-friendliness. It is the pri- announced massive investments, indicates towards the huge po- mary material for construction, consumption-boosting reforms tential India has in growing steel infrastructure building, build- and other positive trade policies consumption. Further, in the ru- ing smart cities, manufactur- and initiatives. ral areas the steel consumption is ing and all other developmental In order to provide adequate much less than urban settlements. projects. Moreover, steel makes momentum to economic ac- With many of the Government’s construction possible in the first tivities in the country, the new initiatives directed towards rural place by providing equipment manufacturing policy aims at development this consumption such as cranes, drills, bulldoz- increasing the share of manu- gap will be bridged significantly. ers, scaffolding, and reusable and facturing in GDP (which has re- For India to become a developed portable shelters at construction mained stagnant at 15-16% since economy, it will need the support sites. Steel is the basic building last 3 decades) to 25% by 2022. of a strong infrastructure. This material of all developmental ac- For this, various initiatives have justifies the target set in Draft tivities for any economy and thus been taken by the Government New National Steel Policy (2016) is perceived as a major contribu- of India, the most significant one for the Indian Steel Industry to tor to the economic growth of being ‘Make in India’. A range of achieve 300 Mt crude steel capac- any nation. steps taken by GOI towards ease ity by 2030-31. Most major do- Today, India is a rapidly grow- of doing business will aid the mestic steelmakers are already ing economy among major world manufacturing activities and put on the path of major capacity ad- economies with a growth rate India as a manufacturing hub on dition. We are seeing both public of 7.6% in the last fiscal. Along the world map. A broad budget and private sectors steel groups with this, next to China, India allocation for infrastructure, spe- increasing their capacities along is fast emerging as the centre of cial drive by the concerned min- with undertaking modernization gravity for steel both in terms of istries for revival of stalled proj- of the existing units. production and consumption. ects, building of highways, Smart India is the third largest producer Cities, Airports, Ports, Inland Challenges and consumer of steel with an Waterway systems are all a part While increase in steel

12 KaleidOKaleidOscope November, 2016 ARTICLE consumption in step with growth In order to provide CRNO, quenched & tempered of the economy should happen, plates /special grade boiler quali- there is a need for the world to adequate ty plates, certain grades of coated look into the aspect of leveraging momentum to economic sheets, prime quality tin plates, the benefits of steel to its advan- API grade large dia pipes etc. is tage. Steel is arguably the most activities in the country, yet to stabilize. This necessitates sustainable of major construc- the new manufacturing imports of steel. tion materials. It has numerous policy aims at During 2015 and in the first half sustainability benefits, which are of 2016, Indian steel industry guaranteed to be realized when- increasing the share of along with world steel industry ever steel is used. They include: faced a number of challenges. manufacturing in GDP low waste, flexibility, offsite man- Some of these include significant ufacture, speed, resource efficien- (which has remained slowdown in Chinese economy cy, adaptability, demountability, with declining domestic steel de- long lasting appeal, safety, reus- stagnant at 15-16% mand, global excess capacity, in- ability and recyclability. These since last 3 decades) creasingly cheaper imports from inherent beneficial characteristics China, South Korea and Japan, result in many social, environ- to 25% by 2022. For sharp decline in steel prices espe- mental and economic gains to sat- cially import prices from China isfy sustainability’s ‘triple bottom this, various initiatives which declined by about 45-50% line” . Once produced, steel can have been taken by the in 2015-16, financial stress in the be used again and again. With steel sector and eroding profit a global recovery rate of more , margins of steel companies. than 70%, steel is the most recy- the most significant one Global overcapacity has driven cled of all materials on the planet. predatory exports from key steel What’s more, 97% of by—prod- being ‘Make in India’. producing countries adversely ucts from steel manufacturing A range of steps taken impacting the domestic sec- can also be reused by GOI towards ease tor in other countries including It is, however, a fact that this India. Prices registered steep fall awareness about the benefit of of doing business will upto January 2016 but firmed up using steel over other substitute aid the manufacturing post introduction of MIP on car- materials is yet to become a com- bon steel. mon knowledge. For populariz- activities and put India Due to continuously falling steel ing and educating about the ben- prices Non Performing Assets efits of steel usage among masses, as a manufacturing hub (NPAs) in steel sector have almost it is possible only if we are able to on the world map. touched 31% of borrowings from spread the idea. This has to come banks. Declining profits of Indian by greater knowledge of life cycle steel companies have been associ- cost analysis in which steel wins ated with rapidly rising debt bur- over other products. taking innovative steps by the do- den at higher interest rates due Justifiably, the Ministry of Steel mestic steel industry to enhance to large scale borrowings to fund has started a campaign to boost steel consumption. In recent past, their modernization cum expan- steel consumption in the coun- there has been rapid expansion, sion programmes. Other key poli- try through encouraging steel by both public sector and private cy issues affecting the Indian steel intensity in construction, deeper companies in steel-making capac- sector inter-alia include iron ore penetration into rural markets ity and state-of-the-art mills have mining ban in 2011, de-allocation and import substitution through been commissioned. However, of coal block in 2014, procedural market & product development. domestic supply in certain prod- delays in environment & forest Hon’ble , Shri ucts, such as Cold Rolled flat clearances, priority change in al- Birender Singh has time and products for certain uses in the location of natural gas to sponge again stressed on the need of auto sector, CRGO & high grade iron units, increase in railway

KaleidoKaleidoscope November, 2016 13 ARTICLE

in process). Auction of coal blocks also in progress. • RBI introduced some policies for relief to the stressed assets by means of 5: 25 policy and S4A.

These measures have provided some temporary relief to the do- mestic steel producers. However, there is a need to ensure level playing field with trading part- ners with mature steel industry such as Japan and South Korea for bilateral / regional trade agree- ments. Fixation of import tariff levels for steel should be based on freight rates, increase in mineral major exporters. global oversupply/slowdown in major steel nations, erosion in do- taxes (royalty, DMF, NMET, clean • Safeguard duty on HR Coils mestic cost competitiveness due energy cess etc). of 20% minus any existing to raw material/energy price dy- dumping duty extended namics and cost of capital & infra- Future Outlook up to Sep., 2016. Thereafter, structure constraint. Free Trade Looking into the stressed situa- phased reduction to 18 % (till Agreement (FTAs) / Preferential tion of the domestic steel indus- March’17), 15 % (till Sep.’17) Trade Agreement (PTAs) should try, Government. of India has and 10% by Mar’18. factor global competitiveness / already taken various measures • Govt. notified MIP on select possible trade distortion. and initiatives some of which in- steel products. ter-alia include: Recent increase in raw material • MMDR (Development & prices, particularly coking coal • Increase in peak rate of CD on Regulation) Amendment Act prices, has again put pressure steel to 15%. Effective rates: 2015 & rules issued (Jan’15). on the domestic steel producers, 10-12.5%. Act envisages iron ore alloca- with cost escalation in excess of • Anti dumping duty on cer- tion for specified end use / $200 per ton as compared to the tain grades of stainless steel also through auction by State previous quarter. Given the un- imposed and provisional Govt. precedented volatility in interna- anti-dumping duty notified • Major notified minerals incl. tional markets, and also due to on import of HR Coils, Plates, iron ore auction rules is- the fact that India continues to be CR Coils and Wire rods from sued in May 2015 (auction a bright spot for steel demand in

14 KaleidOscope November, 2016 ARTICLE a global scenario of overcapacity, it is expected that the pressure on domestic steel industry is likely to remain in the foreseeable fu- ture. The recent trade remedial measures are expected to provide a level playing field to the do- mestic steel producers but in or- der to turn domestic steel sector competitive and support it in the immediate future to tide over the volatile market conditions, the domestic industry would require support in terms of low input & energy costs, raw material securi- ty, freight rate rationalization and adequate tariff protection from cheap imports. Development activities in areas Today, India is a rapidly including production processes, Way forward product development and wider growing economy While there is a quantum capac- usage of steel in various sectors ity addition in the steel sector among major world & segments. The Government is taking all possible steps to re- that will necessitate construction economies with a of new steel plants and expan- move bottlenecks in the growth of sion of the existing ones on a growth rate of 7.6% steel and metal industry in India. scale, which is unprecedented in Whether it is raw material securi- in the last fiscal. India. This growth, although will ty, dumping or excessive imports, corrective steps have been taken provide the Indian steel indus- Along with this, next to improve the situation. try the opportunity to grow on a to China, India is fast large scale and prosper, however, The steel industry as a whole has throws up big challenges for the emerging as the centre an important role in reducing the steel companies. The major ones cost of production. Use of low of gravity for steel both are as follows: grade raw materials for produc- tion of good quality steel in the • Land & Infrastructure in terms of production most economic way will be the • Raw Material and consumption. future. Greater emphasis on ben- • Availability of water & power India is the third eficiation and alternate routes of • Environmental issues steel production will have to be ex- largest producer and plored for being able to use these • Construction and Equipment low grade raw materials which supply consumer of steel with are available in abundance. The • Investment Capital an expected growth in policy makers are already initiat- • Trained Manpower steel demand of 5.4% ing various steps for improving the health and future of Indian While the growing Indian econ- during 2016 and 5.7% steel industry. The domestic steel omy on one hand will provide makers must come forward in re- during 2017 as per ample scope of increasing do- alizing huge potential that grow- mestic steel consumption; on the World Steel Association ing India presents so that they are other hand the steel industry ready with enriched and better (WSA) estimates. would also require massive de- steel to cater to strengthening the velopment in the Research and nation’s growth.

KaleidoKaleidoscope November, 2016 15 ARTICLE Opportunities & Challenges in Steel Sector

P Madhusudan CMD, RINL

teel is the backbone for de- the steel consumption grew by challenges such as: velopment of any economy around 8% in the same period. • Inadequate Infrastructure & Sand its consumption is a Over the next decade, assuming a Logistics barometer of the state of develop- GDP growth of even 6%, the like- • High Capital Costs ment of a nation. The modern era ly growth of steel consumption is has witnessed many innovations, estimated at 7%. This will trans- • High cost of Power & Fuel but no material has replaced steel form to finished steel consump- • Non-availability of Quality so far. tion of about 170 million tonnes. Coking Coal The Indian steel industry is on Further, India’s current per capita • Exiguous Research & the path of decent growth, as the steel consumption is well below Development facilities country is graduating from a low the world average of 208 kg. The • Increased imports due to income country to an upper mid- rising income levels are expect- slowdown in China’s demand ed to make steel affordable and dle income country. India today • Enhancing Operational there is vast scope for increasing has emerged as the 3rd largest Efficiency steel producer in the world. The the consumption. India’s urban • Reduction of Carbon footprint steel sector contributes nearly 2% population is around 33% which • New Product Development to the country’s GDP and em- is expected to rise to 40% by 2030. ploys over 6 lakh people. The per The rural steel consumption is which dictate the need for a com- capita consumption of steel in the also very low with consumption prehensive address to realize country has risen from 51 Kg to largely concentrated in urban ar- the aspiration of the progressive about 62 Kg during the last five eas, which provides vast poten- growth. years. With the steel consump- tial for growth. India’s richness tion in China expected to moder- in mineral resources, particularly ate at around 3%, India is likely iron ore, will adequately support Key Enablers to emerge as the fastest growing its anticipated growth. The de- It calls for collective efforts both steel consuming nations in the mographic profile of the country from the industry as well as the world. is very favourable, with the pres- policy makers and the key en- ence of a large pool of educated ablers would be: Opportunities for work force, which can be lev- • Technology augmentation Growth eraged to the advantage of the and rapid expansion of pro- The Boston Consulting Group industry. duction capacity; (BCG) has observed that the real • Raw material securitization GDP of the country grew at 7 to Challenges and development of a strong 7.5% during the last decade and However, there are many ecosystem.

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• Augmentation of power, The Indian steel R&D efforts for high quality steel. water, logistics and human Some of the thrust areas for new resources to meet the antici- industry is on the path technology to produce special pated growth. of decent growth, steels could be Advanced High • Driving the demand drivers Strength Steels for infrastruc- for growth of steel. as the country is ture applications; Micro Alloyed Steels for high end applications, graduating from a low Technology Medium Carbon Low Alloy Steel for Aeronautical applications, etc. Technology in future would be income country to an This calls for focused impetus a “key differentiator” and it is upper middle income time for the Indian steel compa- to set up adequate manufac- nies to transform them. India is country. India today turing facilities in the country. Entrepreneurs can make a big still dependent on the technology has emerged as the 3rd difference in this space and can suppliers from abroad and there- profitably harness this potential. fore the steel companies have to largest steel producer It would also force the west to come together to synergize their create their facilities in the coun- efforts for developing appropri- in the world. The steel try, resulting in technology pen- ate technologies for production sector contributes etration, competitive prices and of high end value added products better value addition at home. to meet the ever-changing prefer- nearly 2% to the Moreover, a large amount of ences of the customers. country’s GDP and spares required for the steel in- Further, recent technological dustry are still being procured developments are increasingly employs over 6 lakh on proprietary basis due to lack challenging the dominance of people. The per capita of manufacturing capability in steel, particularly in Aviation and the country. This is a high po- Auto sectors. The current trend consumption of steel tential domain with wonderful is towards lightweight materials opportunities. This would open such as aluminum and carbon. in the country has risen new areas of services and prod- The Indian steel companies are from 51 Kg to about 62 ucts for the “Make-in-India” therefore faced with the immi- initiative as well, for which the nent challenge of maintaining Kg during the last five Government is lending a great the superiority of steel, which deal of support. would necessitate technological years. up-gradation through intensive Raw Materials Raw materials is another major challenge. Cost is the main driver for competitiveness and around 60% of the steel production cost is on account of raw materials. The plants which were set up 5 to 6 decades ago were able to secure raw material deposits in the form of mining leases. However, new generation plants are not able to have the same advantage and have to source the raw material at very high prices from the mar- ket. Appropriate measures are therefore required for such plants to ensure availability of the key

Kaleidoscope November, 2016 17 ARTICLE

such as earthquakes. “Rural hous- ing” targets to achieve 1 crore dwelling units in the next 3 years and usage of steel based struc- tures will provide huge impetus to the demand of steel. “Housing for all” Mission by 2022 will also lead to higher consumption of steel. The massive investment of 1 trillion US$ in Infrastructure sec- tor planned by the Govt. in the 12th Five Year Plan will further boost the steel demand and the opportunities have to be lever- aged adequately. The “Smart raw materials at a reasonable cost Demand Drivers Cities Mission” will also, inter- alia, provide core infrastruc- to ensure competiveness in the With regard to markets, India’s industry. ture, which will greatly pro- domestic steel demand is pri- mote the utilization of steel for A positive development of the marily driven by Construction & development. raw material crunch is that it has Infrastructure, Capital goods and enabled shift in focus towards Auto & Manufacturing sectors. The Industrial sector is the 2nd low quality materials such as low Construction & Infrastructure largest consumer in the coun- grade ores and gainful utiliza- are the largest segments with a try after Construction with tion of these materials through share of around 55%; followed Capital goods, Manufacturing beneficiation & pelletization. The by Manufacturing & Engineering & Automobiles being the ma- Govt. is also offering incentives @ 21%; Automobile & transport jor segments. The National for establishing such units. The @ 15% and Capital goods @ 9%. Manufacturing Policy envisions a long term sustainability and com- Though the Construction sec- share of 25% in GDP over the next petiveness of the steel industry tor accounts for almost 35% of decade. This would be a promi- will largely depend on gainful India’s steel consumption, the nent driver, as it has a cascading utilization of low grade ores & per capita use is only around 31 effect on related manufacturing fines in future. kg compared to an average of industries. The Indian steel industry is high- 111 kg of emerging economies. India is the 6th largest producer ly dependent on imports for cok- Therefore, there is huge scope in of Automobiles in the world and ing coal. Intensive research and this segment. has the 5th largest passenger & investment in beneficiation of The anticipated increase in ur- commercial vehicles market. The Indian coal is essential to sub- banization would provide ad- Automobile sector contributes stitute imported coking coal. equate opportunities to acceler- almost 7% of GDP and offers at- Economic exploitation of deeper ate the steel demand with India’s tractive opportunity to drive the coal mines, underground min- housing sector holding substan- steel consumption because of ing and introduction of state of tial potential. The steel to cement its capability to become a global the art technology in exploration, ratio in the country is far lower manufacturing hub for auto- needs to be pursued with all se- at 0.3 against international levels mobiles, particularly small cars. riousness to enhance the cok- of more than 1, providing ad- Though India is the largest mar- ing coal production to meet the equate scope to improve the steel ket for small cars, less than 10% of growing demand. It makes great consumption. A higher steel to the small car production is done sense for development of respon- cement ratio would also help in in the country. India can easily sive technologies for utilizing in- terms of better safety improving aspire to become a leader in this digenously available coal. resilience to natural calamities segment, given its high skill-low

18 KaleidOscope November, 2016 ARTICLE cost labour and favourable geo- The Automobile sector of techno-economic param- graphical location. eters, such as Specific Energy contributes almost Consumption; Raw material con- Government Support 7% of GDP and offers sumption; Productivity; Waste The future of the Indian Steel re-cycling and waste energy re- Industry is therefore bright. attractive opportunity covery, by benchmarking these indices with the best in the world. There is an urgent need for a to drive the steel comprehensive support system The various processes have to be by the Government. The inter- consumption because of re-oriented through adoption of est rates in the country are high “Best Available Technology” and its capability to become when compared to western “Best Available Practices”. economies, resulting in higher a global manufacturing The time has come when the cost of funds. Considering the steel companies have to trans- significance of the steel sector for hub for automobiles, form themselves from “niche” the economy, it is imperative to particularly small cars. to “multi-niche” operators. This introduce optimum amortization transformation is possible only terms to enable the industry to Though India is the through innovation and calls have a healthy bottom line. This for a coherent effective strat- will also help in generating sur- largest market for small egy through R&D. Synergies for pluses for future investments for cars, less than 10% of technology exchange need to be steel capacity addition within the developed by meaningful R&D country for sustainable growth of the small car production interventions by stepping up the the nation. R&D expenditure. is done in the country. Further, the Government also Requirement for clean steel is needs to support the industry in India can easily aspire also of great relevance today to the form of: to become a leader in reduce the carbon footprint. The • Strict enforcement of qual- development of environmentally ity control orders for steel this segment, given efficient processes and augmen- products; tation of renewable energy for re- its high skill-low cost • Maintaining optimum duced emissions and maximiza- Customs Duty on import of labour and favourable tion of re-cycling of wastes have steel; to assume center stage for the geographical location. industry to manage its growth • Imposing Safeguard/Anti- profitably. This will also support dumping Duty on steel prod- the well-balanced climate plan ucts to reduce imports; put forward by India during the • Exclusion of steel products COP21 Convention held recently from the purview of FTAs in Paris. and RECP. I am confident that focused ef- • Exemption from levy of forts for technology augmenta- Energy Cess on coal and coke. tion, attracted access to raw ma- • Balanced logistics portfolio terials, enhancing operational in view of the high domestic efficiency, benchmarking, global transportation costs. supply network and improving steel consumption would go a Industry Imperatives long way in strengthening the The steel industry, on the oth- Indian steel industry’s capability er hand, have to dovetail their for sustained growth and emerge efforts to improve their op- as front-runner in the global erational efficiencies in terms industry.

Kaleidoscope November, 2016 19 ARTICLE

Iron Ore Resources in India – Exploitation Through Beneficiation & Pelletization and its Challenges

Malay Chatterjee CMD, KIOCL

Iron Ore Resources ‘remaining resources’ category. steel has significantly expanded India is the world’s third-larg- Out of 10.64 billion tons of mag- in recent years, particularly in est producer of crude steel (up netite available, 0.02 billion tons newly developed countries such from eighth in 2003) and is are under ‘reserve’ category and as China and India. This has re- expected to become the second- 10.62 billion tons under ‘remain- sulted in a large increase in the largest producer by the end of ing resources’ category. demand for iron ore. If we look 2016. The growth in the Indian Magnetite resources are not be- at the life indices of Iron ore, the steel sector has been driven by ing exploited as these are mostly very long term forecast of Iron domestic availability of raw ma- in eco-fragile areas of the Western and Steel production and the terials such as iron ore and cost- Ghats. Therefore, these would re- consequent demand for iron ore effective labour. Consequently, main untouched till these can be made on optimistic assumptions the steel sector has been a major considered for mining. shows that the steel industry can contributor to India’s manufac- remain comfortable with domes- Around 94 % of hematite resourc- turing output. tic iron ore supplies, however, the es are confined in the States of resources of high grade lumpy India is rich in natural resources. Odisha (33%), Jharkhand (26 %), The country produces as many as ore would have exhausted much Chhattisgarh (18 %), Karnataka before the newly set Plants or 87 minerals including fuel, metal- (12 %) and (5 %). Magnetite lic, non-metallic and atomic min- those which are being planned to resources are distributed in be set up. erals. Among the minerals, re- the States of Karnataka (73 %), serves of coal, iron ore and bauxite Andhra Pradesh (14 %), Rajasthan Value addition to the Iron ore fines are vast and will last decades. As (5%) and Tamilnadu (5%). through various activities such as per United Nations Framework Beneficiation& Pelletization is the Classification (UNFC) of mineral The average consumption of steel need of the hour which will gen- resources, total resources of iron in India is about 60 kg as against erate economic activities as well ore in the country is around 28.52 the world average of 222 kg and as employment within the coun- billion tons (National Mineral in Rural India it is close to 11 try and will also be economically inventory) as on 01.04.2010. kg, there is tremendous scope of beneficial to mining communities Hematite and Magnetite are the development and expansion of in the long run. Incentives have most prominent of the iron ore Mining and Steel Industries in to be given for adopting latest found in India. India, in future. technologies for direct use by ag- Of the estimated 17.88 billion tons glomeration of fines in the form of hematite available, 8.09 bil- Need for Beneficiation & of pellets or sinters as fine forms lion tons are under ‘reserve’ cat- Pelletization considerable part of Iron ore egory and 9.79 billion tons under The production of Iron ore and resources.

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India is also the largest producer India is rich in natural demand for steel in the develop- of sponge iron. The uses of pellet ing domestic market. India’s pel- resources. The country in Blast Furnace in India is absent let production capacity is esti- whereas in technologically ad- produces as many as 87 mated to reach over 100 million vanced plant, the preferred bur- tons per annum, which is almost minerals including fuel, den in Blast Furnaces is a mixture double the country’s production of Sinter and Pellets with mini- metallic, non-metallic capacity of 2012-13 @ 49 mtpa. mum dependence on lumps. It and atomic minerals. As of today, odisha is the most is obvious that increase of Steel preferred destination for setting production at the desired pace Among the minerals, up a pellet plant owing to both, cannot sustain without securing reserves of coal, iron good availability of high grade availability of required raw ma- iron ore fines and its strategic terials. This calls for utilization of ore and bauxite are location. Chhattisgarh is also a low grade ore and fines / slime. vast and will last strong contender location wise The process of Beneficiation & which accounts for India’s high- Pelletization of low grade iron ore decades. As per United est steel production from second- and slime will play a critical role Nations Framework ary manufacturers. in conserving good quality iron Classification (UNFC) In our country, pellet is largely ore reserves. Ministry of Mines used in DRI units with a small has already lowered the thresh- of mineral resources, portion in Blast Furnaces, al- old values of Fe in Hematite ore total resources of iron though, with reducing availabil- from 55% to 45%. This category ity of high grade iron ore lumps, of ore would be separately stored ore in the country is blast furnaces are gradually in the mines and will require around 28.52 billion increasing their pellet burden. crushing and grinding prior to Industry experts believe that pel- beneficiation. tons (National Mineral let uses in blast furnace will in- Low grade iron ore, iron ore fines inventory) as on crease up to 25-30% from current and iron ore tailings/slime accu- level of 10-15%. mulated over the years at mine 01.04.2010. Hematite KIOCL is the only Public Sector heads and generated during the and Magnetite are the Unit which took up the beneficia- existing washing processes, need tion technology in enriching the most prominent of the to be beneficiated to provide con- magnetite ore in the Kudremukh centrate of required quality to the iron ore found in India. Mines way back in 1976 fol- steel plant. lowed by Pelletization with However, the concentrates is too fine in size to be used directly in existing steel making processes. To utilize these fines, Pelletization is the only alternate available. Pelletiziation transforms very fine-grained iron ore into balls of a certain diameter, known as Pellet, which is suitable for blast furnace and for direct reduction. As for as Iron ore pelletization is concerned India is set to achieve multi-fold growth in achieving ambitious target of 126 million tons of steel production in 2016- 2017. This is to the increasing

Kaleidoscope November, 2016 21 ARTICLE establishment of the Country’s A number of policy to the affected people, education first State owned Pellet Plant in measures are being and training of people, provid- 1987 to promote Pelletization out ing health care facilities to the of low grade iron ore. The pro- worked out to revive the community. duction capacity of Pellet Plant mining sector that saw was further enhanced to 3.5 mtpa. earnings take a beating Focus to Overcome the Challenge in Mining Sector KIOCL is operating the Pellet due to softening prices Plant at Mangalore, which is one A number of policy measures are of the premier Straight Grate Iron and subdued demand, being worked out to revive the Oxide Pelletization Plants having but experts do not see mining sector that saw earnings facilities like Roller Press, double- any imminent revival take a beating due to softening decker roller screen and dedi- prices and subdued demand, but cated grinding plant for grind- without a global experts do not see any imminent ing of additives like Bentonite, commodity market revival without a global com- Limestone & Coal. recovery. A few major modity market recovery. A few major steps have been Challenges Faced in steps have been taken taken by the government to re- Mining Sector by the government vive the industry includes pas- India’s multi-billion dollar min- to revive the industry sage of the Mines and Minerals ing industry faced a “tough” includes passage of (Development & Regulation) Act- 2016 amid weak global markets, 2015 and initiating the process for even as the government plans to the Mines and Minerals starting auction of mines bearing fast-track auctions and check il- (Development & minerals such as iron ore, bauxite legal mining with satellite-based and limestone. surveillance Regulation) Act-2015 Introduction of Mine Develop- India’s steel production expected and initiating the to rise 180 million tons by 2020 process for starting ment and Production Agreement (MDPA) as a part of mining lease and to fulfill this demand, ap- auction of mines proximately 300 million tons of deed will provide path for regu- iron ore will be required. To meet bearing minerals such lating the production as well as the demand and supply, Indian as iron ore, bauxite and dispatch of minerals statutory payments to government. Mining Industry is facing nu- limestone. merous challenges in Economic, The government also notified Environmental and Social issues. National Mineral Exploration The delay of commissioning of The mining industry is also fac- Trust (NMET) to encourage min- mining projects due to difficulties ing problems to access water and eral exploration and followed up in getting statutory approval in waste minimization. on various rules and guidelines time from statutory authorities. India is spending about 0.5 per- that can help in improving the The production of acceptable end cent of global expenditure on ex- ease of doing business for miners. product from low grade ore is the ploration, which is very low, so Apart from that to sustain the biggest challenge faced by the our mineral resource base is not challenge in the mining sector, mining industry due to limitation increasing to start new mines as there is need to look into some of in the beneficiation technology. compared to various countries the issues like The mines are located in the re- like Australia, USA, China etc., a) Grant of mining lease on mote areas. Infrastructure and though they spend 5% to 10%. commercial basis for value ore transportation facilities to the The mining industry is not only addition destination are limited. Logistics to produce the mineral but to fol- b) Speedy approvals and clear- of ore transportation is a major low the safe working practice to ances for the mining projects challenge faced currently in the ensure safety of the workers, pro- c) Single Window Clearances mining sector. viding relief and rehabilitation

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System for approvals required to start the mining project. d) Simplification of procedure for obtaining Environment Clearance and Forest Clearance for the project. e) Forest Rights Act-2006 should be applicable only to tribal areas f) Increase mineral resources/ reserves through scientific and systematic exploration of new mineral bearing potential areas.

Maximize resource utilization through • Adoption of world’s best prac- To sum up, Indian mining in- expecting new regulations to tices in mineral beneficiation dustry is starting to experience immediately rejuvenate the sec- phenomenal changes driven by tor will be misplaced optimism. • Utilization of low grade ore regulations and auction frame- However, the new acts defi- • Enhancing the mineral re- work introduced for granting nitely go a long way to untangle sources by carrying out exten- mining concessions to enhance and bring in transparency in the sive exploratory activities. transparency. Under the revenue sector. • Optimum utilization of avail- sharing model, the states have the Looking at India’s current politi- able mineral resource opportunity to be a collaborative cal, social and economic environ- • Large-scale scientific mining partner. There are some strategic ment, we must acknowledge that this is a unique time in history • Strengthening of Indigenous imperatives that still need to be of our nation that our country industry for manufacturing addressed for achieving success is at an- inflexion point and it is of mining equipment and and overall sustainable growth. now for us to make good use of machineries. The market for minerals will this opportunity. Domestic and move in tandem with the demand • Introduction of Special Mining International expectation from for finished products. As there is Zone and area so identified the new Government are high interplay of global and local de- shall be out of the purview of and the challenges will be to de- forest act. mand supply factors, domestic liver on the same. The govern- • Company should allocate ad- demand will be a key drive for ment has made a good beginning equate funds for local area de- the minerals. and announced several notable velopment as Corporate Social As mining is a long term activ- initiatives in the field that would Initiatives. ity and takes time to fructify, help reboot economic growth. ARTICLE

Development of Manganese Ore Industry in India

Mukund P. Chaudhari CMD, MOIL

orld over, Manganese About 95 % of the world’s pro- The Indian Steel Production has is the 4th most used duction of Manganese Ore is used been witnessing an increasing Wmetal in terms of ton- directly or indirectly in steel mak- trend in the past few years. The nage after Iron, Aluminum and ing and other metallurgical usag- competitive opportunities are Copper. Manganese improves es. The remaining 5% is used by being seen in the steel intensive strength, toughness, wear resis- chemicals, paint etc. Manganese industries such as infrastructure tance, hardness and workability ore and Alloy Industry have development, construction, au- of steel and also acts as de-oxidis- historically derived demand tomobiles, etc. These industries er and de-sulphuriser. No satis- from Steel Industry and hence have demonstrated huge growth factory substitute of Manganese is directly related to the volatil- potential for steel in the domestic has been identified in steel mak- ity and movement of global Steel market. ing process which combines its Industry. World demand for Global steel production has in- relatively low price with out- Manganese ore depends directly creased from 1220 MT in the standing technical benefit. on the outlook of Steel Industry. year 2009 to 1600 MT in the year

Managese: Demand Supply Gap

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2015 and the global production In India, however, the target of nearly doubling the do- of Manganese Ore has increased usage of Manganese mestic per capita consumption from 35.42 MT in the year 2009 to to 120 Kg. by 2020. This means 56 MT in the year 2015. The pro- Ore has grown from there is tremendous possibility duction growth of Manganese ore about 3.0 Million Tones of increase in demand of steel of was primarily driven by South (FY09) to 5.40 Million the country, which in turn will increase the consumption of Africa, China and Australia. As Tones (FY15) including against this Indian production of Manganese Ore substantially cre- manganese ore reduced from 2.61 for consumption in ating demand and supply gap. MT to 1.97 MT over the same pe- production of Ferro Without considering the re- riod even though crude steel pro- Manganese and Silico quirement for exports, at G.D.P. growth of 7.5% expected steel duction increased from 63 MT to Manganese meant 89 MT. production is of about 265 MT for exports creating a In India, however, the usage of and the requirement of Mn Ore will be 8 million tons by 2030 and Manganese Ore has grown from large demand supply MOIL is planning to produce 3 about 3.0 MT (FY09) to 5.40 gap and making India mln. Tones. MT (FY15) including for con- a net importer with sumption in production of Ferro The average grade of ore pro- increasing import Manganese and Silico Manganese duced in India is low which ne- meant for exports creating a large dependency. (Graph-I). cessitated import of High grade demand supply gap and mak- India imports have Mn Ore. ing India a net importer with increased from 0.85 MT If requirement for exports increasing import dependency. included then the Mn. require- (FY09) to 3.17 MT (Graph-I). India imports have ment expected to be about 14 MT increased from 0.85 MT (FY09) (FY15) and 2.21 MT by 2030. to 3.17 MT (FY15) and 2.21 MT (FY16). As against (FY16). As against this exports this exports have To meet the demand in have reduced from 0.205 MT to long term reduced from 0.205 almost nil. • Manganese ore production MT to almost nil. Although the production of man- will have to be raised to fully ganese ore in the country is on meet the domestic demand decline, the production of value by enhancing output from the added products namely, ferro- As per the National Steel Policy, existing mines and by open- manganese and silico manga- the capacity of steel production is ing additional virgin deposits. nese has witnessed substantial to reach 300 MT by 2030. India’s The industry can raise supply increase. The higher demand of per capital consumption of steel of manganese ores by acquir- manganese ore for this sector is is 59 Kg. against the world aver- ing mines overseas. met through imports. The coun- age of 225 Kg. which indicates • India is deficient in high try is now the second largest ex- that per capita consumption of grade, low phosphorous porter of silico manganese in the steel is distinctly low in India and manganese ore reserves. This the Govt. has set an ambitious world. necessitates imports of high grade ore to blend with do- Mn. Ore (In Million Tones) mestic quality of Mn ore for Year 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013 2014 2015- production of Mn Alloys. 07 08 09 10 11 12 13 -14 -15 16 • Focused attention is needed to Production 2.16 2.47 2.61 2.42 2.85 2.35 2.32 2.57 2.27 1.97 ensure higher rate of recovery

Imports 0.28 0.69 0.85 0.8 1.3 1.96 2.33 2.179 3.17 2.22 of manganese and improve the quality of the ores by Exports .157 .21 .21 .29 .12 .075 .072 .066 .011 .004 engaging in beneficiation and

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sintering processes. • Exploration agencies to undertake extensive drilling to identify new ore deposits in higher depths. Deep-sea nodules can be a potential resource for manganese in the future, if good grade of resources are established.

Taking in to consideration the huge demand supply gap, and in order to achieve the target of 3 mln. tones by 2030, MOIL has embarked on various projects such as deepening of its existing shafts, sinking of new shafts in ex- isting mines and taken up devel- This MoU will help MOIL in a opment of newly acquired lease Historically, long way to sustain and expand areas in Maharashtra & Madhya international prices the Manganese ore business to meet the long time demand sup- Pradesh. for manganese ore ply gap of the country to some It is worthwhile to mention here have been volatile extent. that MOIL, being a PSU has been and subject to wide Historically, international prices notified under Section 4(1) of for manganese ore have been MMDR Act, 2015 as an agency for fluctuations, depending volatile and subject to wide carrying out exploration of min- on the changes in fluctuations, depending on the erals in any part of India which demand and supply changes in demand and supply in future will help the Company scenario, market scenario, market uncertainties, considerably for exploiting the uncertainties, the the related cyclicality in the steel unknown areas and for estab- industry etc. Domestic produc- lishing manganese ore deposits related cyclicality in ers are required to keep watch on for its diversification, expansion the steel industry etc. the prices of international mar- and development of natural re- Domestic producers ket since major global producers sources so as to further expand of manganese ore are dominant its resource base, as a long term are required to keep players having very high capac- strategy. watch on the prices of ity with more mechanisation In this regard MOIL has signed international market and are supplying ore to Indian ferro alloy producers. Thus Memorandum of Understanding since major global fluctuations in the prices of the with State producers of manganese imported ore and supply demand Mining Corporation Limited and ore are dominant position in domestic market Director of Geology and Mining, drive the pricing decision to a Government of Madhya Pradesh players having very large extent. for conducting the explora- high capacity with more In order to become competitive tion and prospecting of ores in mechanisation with import, the domestic pro- Madhya Pradesh. If availability and are supplying ore ducers in India need to adopt of ore is proved in any area, the outsourcing for manganese min- same will be reserved for the JV to Indian ferro alloy ing to cut down cost and also the Company to be formed between producers. industry needs parity in tax struc- MOIL and MPSMCL. ture with imports.

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MSTC makes giant leap to e-commerce sector

B.B. Singh CMD, MSTC

STC, the erstwhile the goal. On 28.2.1992 MSTC’s e-commerce services to PSEs, canalizing agency for activities were decanalised and Central Government / State Gov- Mscrap continued to due to Government’s policy, im- ernment and Private sector com- deal only in scrap upto March, port of MSTC’s sole item, i.e., panies. MSTC has contributed 1998 even after decanalisation in scrap reduced since 1991-92 but immensely in Government flag 1992. In 1998-99, the Company, at that time domestic trade ship projects on distribution of after seeing the market for scrap activities were strengthened. Natural resources in the coun- dwindled and its inability to per- Corporate Plan was drawn at try through their e-commerce form, decided to expand its busi- that time and it was requested services. ness activities. It primarily dealt that MSTC’s core area of activi- MSTC at this juncture thought in raw materials required for ties is steel-related items so the of investing in equity of manu- steel industry as also Naphtha for Company could not diverse its facturing Company to take over Petrochemicals industry, all on activities in other area and focus their marketing jobs and to pro- back to back basis. To continue in area was always steel industry. vide e-commerce services . the business of international trad- Like any other organization seek- ing itself, it was decided, there- ing to rectify a serious problem, Future plans of MSTC fore, essential for the Company to the Company then decided to build up presence in small sectors draw up a strategic revival plan A. Shredding Plant – to start where the business partners will with the clear intent of making a Scientific Recycling in the not be financial giants. ‘sustainable’ one. Country MSTC was incorporated in MSTC today rendering MSTC has embarked upon setting 9.9.1964 and commenced its busi- ness since 12.04.1965. MSTC had changed its role during last 52 years of existence. From export agent to import canalizing agency and in the wake of liberalization had come out from the protective region and starts doing business on their own without protection from Government. During last 52 years, barring one year, MSTC had always made profit and all employ- ees of the Company had shown their commitment to achieve

Kaleidoscope November, 2016 27 ARTICLE up of mechanized Shredding The major concerns will be more than 99.5% pure. plant to bring a whole new meth- for setting up the MSTC has signed Joint Venture od of processing of scrap from agreement with Mahindra Inter- shredding plant as the End of Life Vehicles (vehicles trade Ltd. to set up a Shredding like two-wheelers, cars, buses on today is the bulk plant in India. MSTC has planned and others, which after being availability of raw to set up collection centers of con- used for around 15 years or so demned vehicles before the set- reach the end of their useful life) materials at economical ting up shredding plant . and other white goods like air- rate. Presently conditioners, refrigerators, which B. MSTC Metal Mandi (M3) after usage for a long period of Government of India MSTC has launched a virtual 10-15 years become unviable is mulling ‘Scrappage market place M3 for the Steel for further operation. MSTC has Policy’ with a scheme of Sector where both Ferrous and been continuously working with incentivizing shredding Non Ferrous items are displayed Ministry of Road Transport and by sellers and number of interest- Highways(MORTH), Ministry of Motor vehicles in ed buyer visit the market for pro- of Heavy Industries(MHI), the form of subsidy/ curement of materials from the Society of Indian Automobile excise duty relief and market palce. ‘M3’ has already be- Manufacturers (SIAM) etc. for come the largest initiative among implementation of a law for com- additional discounts by all internet- based inventions and pulsory shredding of End of Life vehicles manufacturer. MSTC has plan to popularize the Vehicles. It will reduce the depen- ‘M3’ in rural India. dence on present import of scrap This may in line with of 5-6 million tonnes of Shredded ‘Cash for Clunkers’ C. Draft Policy for Ferrous Scrap in the country, consequent- which is in vogue in and Non Ferrous Scrap Metal ly reduce the foreign exchange Recycling in India outgo. In addition, the auto grade several countries in MSTC has taken initiative to put steel of vehicles will be recycled Europe and USA. up to Government a Draft Policy. into a similar grade of steel and Organised and efficient metal not be used in making a finished scrap recycling provides im- product of inferior quality. mense potential for conservation The major concerns for setting relief and additional discounts by of energy and natural resources. up the shredding plant as on vehicles manufacturer. This may MSTC’s vision is to become lead- today is the bulk availability of in line with ‘Cash for Clunkers’ ing player in environment sound raw materials at economical rate. which is in vogue in several coun- Metal Recycling and provide Presently Government of India tries in Europe and USA. raw material security to domes- is mulling ‘Scrappage Policy’ Almost all technology providers tic industry and also to be asso- with a scheme of incentivizing have suggested that FERROUS ciated with on shore/ offshore shredding of Motor vehicles in SHREDDED SCRAP that will be Government resource allocation the form of subsidy/excise duty produced by shredding plants in a transparent manner. MSTC always believe in the following: • Change in mindset • Complete customer satisfaction • Employee empowerment • Time based competition • Broad banding of product basket ARTICLE Steel Usage and Relevance of HSCL in Steel Sector

Moyukh Bhaduri CMD, HSCL

industan Steelworks Co- HSCL has always felt the neces- of coloured coated steel sheet. nstruction Limited was sity and responsibility to increase Due to the large number of Hincorporated in 1964 the usage of Steel in the country. units to be made nation-wide, with a mandate for implementa- Apart from executing industrial a total steel consumption of tion of Integrated Steel Plants in structures with extensive use of about 10,000 tons is envisaged the Country. During the subse- steel sections, the company en- in the project. quent years, the Company con- deavors to take up implementa- 2. HSCL’s design of the tributed immensely in construc- tion of steel intensive building “Anganwadi Centres” in the tion of almost all the Steel Plants structures for promoting steel state of Odisha has attracted under SAIL and Visakhapatnam usage. the attention of the State Govt. Steel Plant under RINL. Till 31st The main considerations behind because of its low cost, attrac- March 2016, the Company ex- steel intensive buildings are: tive design and ease of con- ecuted orders worth Rs.7158 Cr. struction. The child friendly • Greater stability and seismic in the Steel Sector which includes structures are designed with resistance. mainly 4 MT and 7 MT expansion pre-fabricated steel and other of , 1.7 MT, 2.5 • Higher space availability. materials to achieve a fast re- MT and 4 MT phases of Bokaro • Lesser construction time. sponse. The project has been Steel Plant and modernization initiated by the Women and packages of . Child Development Deptt., At present, HSCL is engaged Some of the major steel Govt. of Odisha in the District in implementation of Capacity intensive projects of Puri & Khurda. Later on, Expansion Packages of SAIL Steel undertaken by HSCL the model will be extended all Plants including 4 major Civil are as below over the State. and Structural Packages of Bhilai 1. Ministry of Youth Affairs & 3. HSCL has signed an Agree- Steel Plant. Not relenting efforts Sports, Govt. of India has an ment with Commissioner, in the Steel Sector, the Company ambitious scheme of putting Berhampur Municipal Corp- diversified successfully in a wide up small Indoor Sports Halls oration (BeMC), Berha- range of Infrastructure Sectors at block level across the coun- mpur, Govt. of Odisha for through the length and breadth try under RGKA to promote Construction of 596 new of the country to attain sustain- sporting activities in remote Dwelling Units (DU) and ability. Today, HSCL is an ISO areas. HSCL has designed up-gradation of 459 DUs 9001-2008 Company and its capa- such Indoor Sports Halls of in 26 slum cluster Ph-VI bilities cover almost every field of an area of around 4000 sq.ft. for Berhampur Municipal construction activities. each using pre-engineered Corporation under Rajiv Awas As a CPSU under the administra- steel frames and roof truss. Yojna at Berhampur which in- tive control of Ministry of Steel, The roof sheeting is by way volves 1520 MT of Steel.

KaleidoKaleidoscope November, 2016 29 ARTICLE

4. HSCL in collaboration with INSDAG in Eastern India has designed and implemented the uniquely designed build- ing with a frame-work of structural steel. Around 562 MT of steel has been used in the modern building of 5 (five) storey which has been success- fully handed over to INSDAG for making their new office at Kolkata. This building is showcased for upcoming housing infrastructures in the seismic zones including the North Eastern States.

5. HSCL has successfully com- zone. The project is currently ‘Housing for All Mission’ by 2022. pleted the work of Handloom under the approval of Govt. of This will also involve consider- Marketing Complex at India, Ministry of DONER for able use of steel. Janpath, which is funding. Based on credential and expo- unique in nature with Steel sure in Steel and a wide range Framed Structure consuming 9. HSCL has started execut- of Infrastructure Sectors es- 1410 MT of Structural Steel. ing the project of Shillong International Centre for pecially in implementation of 6. HSCL has executed an or- Performing Arts & Culture Residential and Non-Residential der from the Govt. of West (SICPAC) at Shillong, Building Infrastructures, dur- Bengal for making a chain of Meghalaya consisting of 3 ing the recent review meeting food godowns designed out of Auditoriums where a sig- by Hon’ble Secretary, Ministry of structural steel. 15 nos. of such nificant steel structures in Steel, Govt. of India, HSCL was Godowns have already been the form of roofing & sup- given mandate to take up the handed over to the Govt. of port frames of steel are being responsibility of offering quick West Bengal and the same de- utilized. and economical solution to the sign will be replicated through “Housing for all Mission”, other repeat orders. All the projects highlighted areas beyond Housing like Sports 7. HSCL’s design of pre-engi- above are promoting the use of Infrastructure, Infrastructure in neered buildings/hutments significant quantity of steel as Seismic zones and development with light steel frame struc- compared to the traditional RCC of hilly terrains of North Eastern ture and roofing has been frame structures consisting of States etc., keeping in view the submitted to the State Govt. of about 40% steel components. purpose of increasing Steel Usage Meghalaya for their economi- The upcoming NIPER projects at in the Country. cally weaker sections. Once 3 places, Gandhinagar, Raibareli For presenting an Approach implemented, the project will and Hajipur and Manipur Paper with different options and provide Affordable Houses University will also consume a technologies on Steel Intensive to the needy throughout the considerable quantity of steel. Mass Housing, a Workshop was state, even in remote locations. Based on the concept of steel in- organized by HSCL on 26.08.2016 8. HSCL has also designed two tensive cluster and low cost hous- in Kolkata with a number of lead- Stadiums in the South Garo ing, HSCL has sent Expression of ing exponents in the related field Hills of Meghalaya State us- Interest for taking up Housing of Prefabricated/Precast Housing ing a large quantity of steel projects for slum rehabilitation in the Country. fabricated structure for con- and affordable housing for ful- The offered technological options struction in the highly seismic filling Government’s vision of have been taken forward with high

30 KaleidOKaleidOscope November, 2016 ARTICLE level officials in the rank of Chief All the projects method, average pace of con- Secretary, Govt. of Chhattisgarh, struction is 8-10 apartments/ along with Secretary, Ministry of highlighted above are day Steel, during a meeting held on promoting the use of • Complete R.C.C.Construction, 14.09.2016, at Raipur in which a quality of construction is significant quantity Presentation was also given on much superior Pre-fabricated/ Precast technolo- of steel as compared gy. A separate Presentation on the • Zero wastage of construction subject was made before Hon’ble to the traditional material as all elements are Chief Minister of Chhattisgarh manufactured in factories RCC frame structures on the same day which was well • Studies show that service life appreciated by him and the State consisting of about of precast building is atleast can start venturing into the use of 100 years these available technologies. 40% steel components. • Precast buildings are inher- The matter of enhancement of The upcoming NIPER ently designed to be earth- Steel Usage in various Sectors quake and water proof has also been discussed in de- projects at 3 places, • Construction is not hindered tail, during the recent meeting of Gandhinagar, Raibareli by weather conditions the Consultative Committee of Ministry of Steel on 05.10.2016, and Hajipur and • It is a green construction at Bhopal, in presence of Hon’ble method Manipur University Steel Minister, Minister of State, • Pre-Cast Technology is best Secretary, MoS, Joint Secretary, will also consume a suited for mass affordable MoS and other dignitaries. considerable quantity housing projects. Some salient features of the of- fered technologies are listed of steel. Based on Pre-Fab Technology below: the concept of steel Advantages & features Precast Technology intensive cluster and • Thermally & acoustically in- sulated building with Doors, Strengths low cost housing... Windows & custom built • A very rapid construction interiors.

Bailey Bridge in Tripura.

KaleidoKaleidoscope November, 2016 31 ARTICLE

• AC, Fan, Light fittings are panel mounted with internal/ external, electrical conduits as per customer choice • Pantry, Toilets are placed as per requirement with suitable construction • Floor of Service Areas as per requirement and option of having aluminium che- quered plate, PVC flooring or floor tiles • Highly Energy Efficient, meets ECBC norms • Relocatable, very fast to com- mission & decommission desired or required form comparison to conventional building. • Can be designed to suit all • Steel is ductile hence the best flexible but strong material seismic zones & high wind • Light Weight against high wind & best speeds • Faster Construction shock absorber against earth • In case of additional floors, • Corrosion Resistance quake since the structure is very • Better Thermal Insulation • Development that meets light , the dead load on the • Sustainability & Green the need of present without foundations do not change Technology compromising the need of much • Cost efficient the future, focusing upon prefab System using the best • Higher Wind Resistance Specialties re-useable material, steel as • Higher Seismic Performance • Prefab Buildings meets the the major component of the • National Building Code need of Green Building Building. Compliant Conditions • Usage of Steel is substantially • Because Prefab Uses only 20% increased in case of Pre- Simultaneously, HSCL has taken of Water during construction fab & Pre-cast buildings in initiative in exploring options for compared to other practices substitution of RCC structures by • Prefabs saves 40% in Energy Steel structures for Road Bridges. required during construction For presenting an Feasibility Reports for rehabili- thus reduce Carbon–di–Oxide Approach Paper with tation 5 such bridges in the state have been submitted to Govt. of emission different options and • Prefabs System reduces 70% Chattishgarh. Implementation of technologies on Steel of construction & Demolition the proposed schemes is likely to be taken up in phases. Besides Waste which normally goes to Intensive Mass Housing, this, effort is on to explore the Land Fill a Workshop was possibilities of using Steel struc- • Prefab Saves 50% construc- organized by HSCL on tures for Rural roads also un- tion time, hence 100% 26.08.2016 in Kolkata der PMGSY in place of RCC Productivity to growth with a number of leading structures. exponents in the related As a Central PSU under Ministry Steel is preferred in both of Steel, HSCL takes it as one of Pre-Fab & Pre-Cast tech- field of Prefabricated/ its prime responsibilities to be nology due to the Precast Housing in the a part of the Ministry’s initia- following advantages : Country. tive for increasing steel usage in • Steel is readily available in the Country.

32 KaleidOKaleidOscope November, 2016 ARTICLE Indian Steel Industry: A Growth Story in the Making Ashima Tyagi* Dr. Sanak Mishra*

Prologue: India’s position as a leading Growth engine of the world In a world filled with heightening uncertainty and growth slowdown, there is unanimity amongst policy makers, economists and analysts worldwide, that India shall exhibit robust growth in the coming years, even surpassing China. Irrespective of the data-set being considered, in terms of real GDP growth, India is forecast to grow at a healthy rate compared to other major economies (Tables 1, 2 & 3).

TABLE 1: Forecasts of Real GDP growth rates & inflation for select economies TABLE 2: Overview of World during 2015-2021 (in %) Economic Outlook Projections for 2016-2017 (%) In % 2016 2017 2018 2019 2020 2021 Real GDP Growth 7.3 7.5 7.5 7.4 7.5 6.9 2016 2017 India Inflation 5.5 5.1 5.0 4.6 4.5 4.7 United States 1.6 2.2 Real GDP Growth 6.7 6.0 4.2 4.6 4.3 4.4 Japan 0.5 0.6 China Inflation 2.1 2.0 1.6 2.0 2.1 2.4 China 6.6 6.2 Real GDP Growth 1.6 2.3 2.1 1.0 2.0 2.0 India 7.6 7.6 U.S.A. Inflation 1.1 2.1 2.2 1.3 1.7 1.9 Brazil -3.3 0.5 Real GDP Growth 0.5 0.4 0.5 0.6 -0.1 0.4 Russia -0.8 1.1 Japan Inflation -0.1 0.4 0.4 0.6 1.3 0.8 Mexico 2.1 2.3 Real GDP Growth -0.8 0.7 1.2 1.1 1.6 1.5 Source: International Monetary Fund, Russia Inflation 7.2 5.7 4.6 4.9 4.7 4.7 ‘World Economic Outlook, Subdued Demand Symptoms and Remedies’ dated Source: The Economist Intelligence Unit, Global Forecasting Service, dated November 1, October2016 2016

TABLE 3: Forecasts of Real GDP for 2016-2018 (%) Estimates Projections 2013 2014 2015 2016 2017 2018 World 2.4 2.6 2.4 2.4 2.8 3.0 Advanced Economies 1.1 1.7 1.8 1.7 1.9 1.9 United States 1.5 2.4 2.4 1.9 2.2 2.1 Euro Area -0.3 0.9 1.6 1.6 1.6 1.5 Japan 1.4 -0.1 0.6 0.5 0.5 0.7

*Ashima Tyagi is Assistant Director at the Indian Steel Association. *Dr. Sanak Mishra is Secretary General & Executive Head of the Indian Steel Association; Address: 8A, Hansalaya Building; 15, Barakhamba Road; New Delhi 110001, INDIA

Kaleidoscope November, 2016 33 ARTICLE

Emerging Market and Developing 4.7 4.2 3.4 3.5 4.4 4.7 Economies (EMDE) East Asia and Pacific 7.1 6.8 6.5 6.3 6.2 6.1 China 7.7 7.3 6.9 6.7 6.5 6.3 Indonesia 5.6 5.0 4.8 5.1 5.3 5.5 Thailand 2.7 0.8 2.8 2.5 2.6 3.0 Europe and Central Asia 2.3 1.8 -0.1 1.2 2.5 2.8 Russia 1.3 0.7 -3.7 -1.2 1.4 1.8 Latin America and the Caribbean 2.9 1.0 -0.7 -1.3 1.2 2.1 Brazil 3.0 0.1 -3.8 -4.0 -0.2 0.8 Mexico 1.4 2.3 2.5 2.5 2.8 3.0 Middle East and North Africa 2.0 2.9 2.6 2.9 3.5 3.6 Saudi Arabia 2.7 3.6 3.4 1.9 2.0 2.3 Egypt, Arab Rep. 2.1 2.2 4.2 3.3 4.2 4.6 South Asia 6.1 6.8 7.0 7.1 7.2 7.3 India 6.6 7.2 7.6 7.6 7.7 7.7 Pakistan 3.7 4.0 4.2 4.5 4.8 5.1 Sub-Saharan Africa 4.8 4.5 3.0 2.5 3.9 4.4 South Africa 2.2 1.5 1.3 0.6 1.1 2.0

Source: World Bank, ‘Global Economic Prospects: Divergences & Risks’, dated June 2016

India’s well-entrenched democ- consumption of steel in a country, important indicator of economic racy, independent judiciary and therefore, in India, consumption development and living stan- robust Financial Institutions re- of steel products shall naturally dard of the people in any country. main the fundamental bedrock increase with the strengthening However, India’s per capita steel over which an upward looking of the local economy’s growth consumption, at 59.4 Kg, is way GDP growth model rests. This over the next few decades. below the world average of 217 has been further strengthened The level of per capita consump- Kg in 2014, as stated by World recently through passage of tion of steel is known to be an Steel Association (Table 4). comprehensive tax reform in the form of a Goods and Services Tax (GST); improvement in the busi- TABLE 4: A comparison of growth prospects of emerging economies ness climate& competitiveness; (2014 & 2030) curtailment of the black econo- Steel Use GDP per capita Urbanization Population my; reforms in the energy sector; per capita (thousand USD) (%) (million) increase in government spending (in kg) on infrastructure and spurt in do- 2014 2014 2030 2014 2030 2014 2030 mestic consumption. India 59 1.6 9.5 33 40 1267 1476

Steel to leverage Indonesia 54 3.4 12.3 54 63 253 293 Urbanisation & Demographic Vietnam 138 2.0 8.1 34 43 93 102 Dividend in India Thailand 258 5.6 14.2 50 64 67 68 Since strong linkages exist be- Mexico 182 10.5 22.8 79 83 124 144 tween GDP growth (more so if it is manufacturing led) and Source: World Steel Association, ‘World Steel Outlook’ dated April 2015

34 KaleidOscope November, 2016 ARTICLE

As per World Bank report titled Survey of India (2015), EWS avenues for expansion of its cities, ‘Leveraging Urbanization in (Economically Weaker Sections) including infrastructure, trans- South Asia: Managing Spatial and LIG (Lower Income Groups) portation, healthcare, education, Transformation for Prosperity together account for 95.6 per cent and recreation.In contrast, the and Livability’ (Sep 2015), of the urban housing shortage in rate of steel consumption in the Urbanization has been previ- the country, and the Government developed world will slow down ously relatively slow in India, shall work towards addressing and such “Steel Mature Nations” with the share of the population the need of this significant seg- would look at markets like India living in officially classified- ur ment of population. Hence, a for exporting their products. ban settlements growing at a rate huge untapped potential exists of just over 1.15 percent a year for the steel sector in India. India’s resilient Steel from 2001-2011. However, under Further, the demographic divi- Industry the leadership of Prime Minister dend of young and skilled popu- Narendra Modi, the focus of all The domestic industry has proved lation vis-à-vis other developed itself to be a highly dynamic in- major programmes announced by countries will yield a potential the Government revolve around dustry which has survived vari- benefit. The young will increas- the tenets of Urbanisation which ous highs and lows of the busi- ingly demand a better quality in turn are a growth opportu- ness cycles for more than 100 of life, thanks to the rising dis- nity for the steel sector in India. years. It has even withstood vari- posable incomes, and open-up For instance, as per the Economic ous challenges which has dented its competitive edge in respect of TABLE 5: Snapshot of India’s Steel Industry, FY13-16 (in MT) freight costs, financial costs, in- frastructure & logistics costs, raw 2012-13 2013-14 2014-15 2015-16 material costs etc. It will continue Crude Steel Production (MT) 78.42 81.69 88.98 89.77 to serve the domestic demand by Crude Steel Capacity (MTPA) 97.02 102.26 110 116.74 expansion of capacities & innova- Capacity Utilization (%) 81 80 81 77 tion in products (Table 5). Finished Steel In recent years, however, a surge Production for Sale (MT) 81.68 87.67 92.16 90.39 in imports debilitated the growth curve of the Indian Steel Industry Real Consumption (MT) 73.48 74.09 76.99 80.45 (Figure 1), along with a global rise Import (MT) 7.93 5.45 9.32 11.71 in trade actions under Chapter Export (MT) 5.37 5.98 5.59 4.07 72 of Indian Trade Classification Source: Ministry of Steel Annual Reports (ITC) – Iron & Steel (Table 6).

FIGURE 1: Surging of steel imports into India, Sep 2011- Jun 2016 TABLE 6: Summary of Global Trade (in thousand tonnes) Actions under Chapter 72 – Iron & Steel

During 01st January, 2015 to 15th November, Nos 2016. [initiated, in force] Safeguard 14 Countervailing 25 Anti-Dumping 153 Technical Barriers 25 Quantitative Restrictions 02 Others 00 Total 219 Source: : Indian Steel Association, constructed from Centre for Monitoring Source: Indian Steel Association, based Indian Economy (CMIE) Database on World Trade Organization Database

Kaleidoscope November, 2016 35 ARTICLE

Steel essential to “Make in TABLE 7: Forecasts of country-wise Crude Steel production, 2016 - 2015 (in MT) India” Figures in MT 2016e 2017e 2018e 2020e 2025e While India is currently the Japan 103.0 101.5 100.7 99.2 95.6 world’s third-largest producer of South Korea 69.0 70.5 71.5 72.4 75.1 crude steel (up from eighth posi- tion in 2003); it is expected to be- Western Europe 130.4 131.7 135.4 138.7 147.2 come the second-largest produc- United States 81.0 82.6 84.9 87.3 93.6 er and consumer of steel in due China 790 760 730 706 650 course of time (Table 7). India 93.3 97.5 101.7 108.5 127.3 Source: World Steel Dynamics Inside Track #150 dated October 2016

Government of India has judiciously laid out the Steel-Vision of building a capacity to the tune of 300 MT by 2025 to support the campaign of “Make-In-India”. Over the medium to long term, steel using end user industries are bound to grow in line with the growth in GDP, (Table 8), which is why World Steel Association states, under its Short Range Outlook, that

“Indian steel demand is expected to report solid growth in 2016-2017 backed by consumption-boosting reforms and infrastructure investment”.

TABLE 8: Growth in steel using sectors in India, 2012-2017 (in MT)

Steel Using Sector Steel 2012 2013 2014 2015 2016 2017 y-o-y % growth Weights, % Construction 62.0 2.4 5.4 4.0 3.4 4.9 5.8 Domestic Appliances 5.0 -1.3 -0.4 8.1 5.1 5.7 7.3 Electrical Equipment & echanical 15.0 -1.2 -9.0 -7.4 2.5 5.3 6.7 Machinery Metal Products 6.0 -1.7 -5.2 13.5 -1.2 4.9 5.8 Automotive 9.0 0.5 -6.1 0.8 5.5 8.5 9.4 Other Transport 3.0 -8.6 -11.9 6.5 7.6 9.0 8.9 Source: World Steel Association, Short Range Outlook, October 2016

Large volumes import of steel producers, resulting in high de- playing field and fair competi- products at predatory prices gree of stressed assets within tion to domestic steel enterpris- brought about deep dents on to the industry. In the long term, es vis-à-vis foreign companies the viability of the Steel Industry the surge in imports threatened from steel surplus countries of- in India. Contemporaneously to distort the market structure, fered a respite to the Indian Steel with the surge in imports, the and stifle the growth of Steel Industry. The actions included domestic prices of steel prod- consumption. hike in basic customs duty, im- ucts had declined substantially With prompt government in- position of safeguard duty and hitting the bottom-line financial tervention, especially from June anti-dumping duties as well as performance of domestic steel 2015 onwards, to provide a level Minimum Import Price (Figure 2). Image courtsey: India ltd. ARTICLE

FIGURE 2: Trend of Domestic HRC Price Movement during Sep 2014 to Oct 2016 • Mitigation of price volatili- ties existing in the global steel marketplace • Prevention of impact from global uncertainties in terms of supplies, currency, Ocean freight, Geo-Political tensions, Sovereign Policies, Tariff & Non-Tariff measures etc. • Minimisation of multiple trade channels – thereby con- tain volatilities / inflation • Prevention of drainage of precious foreign exchange outflow

Source: Indian Steel Association, constructed from SteelMint database; HRC – Epilogue: Way forward Hot Rolled Coil The Indian Steel Industry exhib- its a high growth potential on As an outcome, imports into India have witnessed a decline in recent account of low per capita con- months of the financial year 2016-17 (Table 9). sumption of steel in the country. Notwithstanding global surplus TABLE 9: Snapshot of India’s Steel Industry, April – October 2016 (in MT) steel capacities, steel consumption will continue to grow in India and Apr. May June July Aug Sept. Oct. in turn the Indian Steel Industry ‘16 ‘16 ‘16 ‘16 ‘16 ‘16 ‘16 will also witness expansion to Crude Steel 7.409 8.06 8.151 8.072 8.175 8.088 8.230 meet the increase in demand. The Production steel enterprises are internally ro- Finished Steel bust with investments in research Production for Sale 7.487 8.487 8.503 7.640 8.239 8.042 8.249 & development, technology and Real Consumption 5.75 7.571 6.558 6.289 6.971 6.731 7.114 automation. Concomitantly, chal- lenges continue to prop up for the Import 0.654 0.546 0.596 0.561 0.619 0.611 0.538 industry, for instance, sudden rise Export 0.308 0.381 0.509 0.468 0.680 0.655 0.536 in coking coal prices recently and Source: Joint Plant Committee, Ministry of Steel new environmental statutes. If India decides to consume steel Need for promotion of domestically produced “melted that is “Made in India”, then we need to rely on developing ou- and manufactured” Steel rown globally competitive Steel Given that Steel Industry will continue to form the bedrock for Enterprises.The Government of Industrialization and Nation Building India in the next decade, it is India has recognised this and re- critical that proactive steps may be taken, both by steel companies and mained supportive of the growth Government, to render the 300 MT capacity creation target by 2025 a of the industry. It has, on merit major success story. Primary amongst these would be institutionalisa- considerations, imposed trade tion of a policy framework which promotes usage of domestically pro- remedial measures that have pro- duced steel, which is 100 percent “melted and manufactured in India” vided much needed stability to the industry. At the same time, the atleast in government projects. Globally, prominent industrialized and Industry needs to focus strong- developed countries including USA, Europe, China, Japan, Korea have lyon achieving market leadership, witnessed their economic development and growth strongly support- reflecting cost competitiveness ed by a robust, sustainable and reliable domestic steel industry. India, and affordability. must, follow suit. Such a policy shall ensure: Let there be Steel: Safe Steel, More • Timely supplies of steel of consistent quality Steel, Indian Steel

Kaleidoscope November, 2016 37 ARTICLE A few thoughts on Indian Steel Industry

Sushim Banerjee Director General Institute for Steel Development & Growth, Kolkata

hat is the role of steel by a series of checks and controls in the country. The following ta- industry in India that, on one hand disincentivised ble summarises the picture. Wwhen the country the entrepreneurial spirit and on The annual average growth rate makes a serious attempt to grow the other, taught the producers in steel consumption in China from the developing stage to a to thrive on a shortage scenario. sharply dropped from 11.5 per developed one? Take a look at From the mid nineties till date cent during 2005-10 to 2.7 per some of the other countries like barring a few glorious years from cent in 2010-15 periods. Similar USA, Germany, Japan, Korea, FY 2008 to FY 2014, the steel in- fall in steel consumption, though France and China. Economic dustry in the country had wit- lower in scale, took place in India growth was synonymous with nessed a growth which although also. Thus, while India aspires to growth of industry, manufactur- had exceeded the global growth become second in terms of total ing with steel as one of the most rate in steel consumption, but is steel consumption, the low per critical elements of development. considered tardy in the backdrop capita steel consumption in the of the massive potential of en- country poses massive potential The backward and forward link- hancing the level of consumption of increasing use of steel. There ages of steel industry are well spread out and inseparable from the growth and progress of the Table-1 : Steel Consumption Growth: 2000-15 economy. Steel had its origin in MT India (Sword of Porus presented Country 2005 2010 CAGR 2015 CAGR Per capita to Alexander the Great, Ashoka (%) (%) steel Pillar, woodtz steel used to make (2005- (2010- consumption arms and household items in the 10) 15) (Kg) 2015 South in the pre-historic periods). China 340.2 587.6 11.5 672.3 2.7 488.6 But the world came to know the USA 110.3 79.9 (-) 6.2 96.1 3.8 298.8 use of steel only in the last 250 India 39.9 64.9 10.2 80.1 4.3 61.1 years of development. Japan 76.7 63.6 (-) 3.7 63.0 (-)0.2 497.3 S. Korea 47.1 52.4 2.2 55.8 1.3 1109.5 Recent growth in Germany 36.0 36.2 0.1 39.2 1.6 485.4 steel use Russia 29.3 36.7 4.6 39.4 1.4 274.8 In India the real growth of steel industry from the mid fifties of World 1044.8 1310.8 4.6 1499.6 2.7 208.1 20th century was accompanied Source: World steel Statistical Year Book 2016

38 KaleidOKaleidOscope November, 2016 ARTICLE are two strong reasons why use A good deal of light by the professionals, consultants, of steel is slated to rise in India. and high strength steel government and other private First, India is a developing nation procurement and project au- and has massive infrastructural has emerged namely, thorities that promotion of steel- deficits and secondly, the fun- tubular, cold formed concrete-composite designs that damentals of Indian economy in structurals, embossed combine the strengths of both terms of GDP growth, Current steel and concrete in the interest Account Deficits, Inflation rates, sheets, hollow sections, of cost effectiveness, faster and demographic dividends of maxi- galvanized structurals, ease of construction, environ- mum percentage of working pop- ment friendliness, earth quake thin dimensions of ulation are robust to propel pub- and fire resistance would lead to lic investment flows into building hot and cold rolled phenomenal changes in the inno- infrastructure network. steel with more UTS vative designs and flexibility. The Institute for Steel Development and YS strengths for Competition from other and Growth (INSDAG), a body materials application in a host promoted by all the major steel Meanwhile since the last two of uses. More use producers and Ministry of Steel, decades steel has been facing stiff has been working relentlessly of light gauge high competition from other materi- on doing research studies on als like Aluminium, Magnesium, performance steel various aspects of steel-concrete- Plastic especially Carbon Fabric (MPa> 410/590) in composite designs and publish- Reinforced Plastic in various ing reports on, assisting BIS in construction and traditional end uses. Steel that framing Codes and Standards was traditionally considered engineering sectors is for steel grades based on feed- ugly, heavy, easy to melt in fire also being increasingly back received from the consum- and break in tremor has been ers and producers, conducting demanded in India. replaced by other materials. The elaborate training programmes changed scenario along with ex- for Engineering students in Civil, cess availability compared to slow Mechanical, Metallurgy, Electrical growth in demand made it engineering fraternity was by and disciplines and their faculties and obligatory to place more empha- large more exposed to RCC based other professionals. sis on promotion of steel use in construction and the engineer- A good deal of light and high the country. ing curricula in the degree and strength steel has emerged name- Steel lost its prominence in many diploma colleges were not tuned ly, tubular, cold formed struc- uses where strength to weight to provide in knowledge in steel turals, embossed sheets, hollow ratio was not in its favour like structural properties and uses. sections, galvanized structurals, bus body building and interiors, This has made the professionals, thin dimensions of hot and cold window sills, automobile com- designers and architects not fully rolled steel with more UTS and ponents like fuel tanks, engine appreciative of the advantages of YS strengths for application in blocks, pipes and tubes, house- steel based designs. The periodic a host of uses. More use of light hold items. Steel gained its role supply shortages in steel from the gauge high performance steel in all large span construction domestic sources in the earlier (MPa> 410/590) in construction including commercial build- years also made the designers a and engineering sectors is also ings, airports and warehouses. little apprehensive on steel based being increasingly demanded Railways traditionally relied on designs. in India. steel bridges. But in Road Over The need of the hour is to con- Bridges (ROB) and Flyovers, steel Promotion of steel use vince the concerned authorities, was fighting against concrete. Our It is now increasingly appreciated government departments and

KaleidoKaleidoscope November, 2016 39 ARTICLE project execution agencies on uncertainty is unmistakable. But Sectoral Growth the choice of construction mate- it is also acknowledged that the The growth in Construction and rial basis the Life Cycle Analysis uncertainties surrounding the Infrastructure sectors account- and not simply on the current currency movements (dollar and ing for more than 60 per cent of costs (L1 consideration). If the yen getting stronger and Pound steel consumption in the coun- constructed structures can sur- sterling weaker), geopolitical try being crucially dependent vive natural calamities for more scenario, investment measures, on investment would lead the number of years, yield commer- premature deindustrialisation, table of the demand driving fac- cial benefits by shortening the ageing populations are contained tors. Already Roads, Railways construction period, lead to lesser to the regional level and therefore (including Metros), Industrial disturbances to the public during the specific remedial steps may Corridors projects proceed on construction, these must be suit- have a better success rate. schedule as most of these are ably factored into the tendering Indian steel consumption that funded by world Bank, ADB clauses for the respective con- was 81.5 MT in FY16 has been pro- and Japanese Consortium. struction jobs. jected to grow at an average rate Significant policy changes have of 5.5 per cent during 2016 and been made to make these proj- Estimates of steel 2017 to reach 89.1 MT by 2017. ects acceptable under PPP mode. consumption India would be still be 8.7 MT be- While appropriate trade mea- hind the level of consumption of sures by the government restrict- The global steel consumption that USA by next year. Chinese steel ing cheap flow of imports and went down by 3 per cent in 2015 consumption has been projected dumping of surplus steel to India is slated to reach 1501.3 MT in the to drop by 20 MT between 2015 (Safeguard duties, Minimum current year, at a nominal 0.2 per and 2017. India would lead the Import Price, Anti Dumping) cent growth over last year and global steel consumption growth have helped the domestic steel reach 1509.6 MT in 2017, at 0.5 by adding 9 MT during these two producers to gain additional per cent growth. This is in tune years, the highest volume growth market share, the growing re- with the global GDP growth pro- in the world during this period. quirements of value added steel, jected at 3.1 per cent and 3.4 per The Demand projection for steel light gauge high performance for the next two years is shown in cent in 2016 and 2017 by IMF and steel, both in long (construction the following table. global trade volume is estimated sector) and flat (manufacturing to grow by 2.3 per cent and 3.8 The annual average growth rate and processing sector including per cent in 2016 and 2017 respec- in steel consumption for India in Automobiles) categories would tively. In all the forecasts the pull- the next two years is the highest prompt them to upgrade plant ing down impact of heightened for India. facilities and to give thrust to product development for roll- ing value added steel. High Table:2: Steel Demand Projection for 2016 & 2017 speed Head Hardened Rails for MT Dedicated Freight Corridors and Metro Rails, Creep resistant, Fire Country 2015 2016 2017 CAGR (%) {2015-17} resistant, Fatigue resistant steel China 672.3 665.6 652.3 (-)1.5 for Oil and Gas, defence sectors, USA 96.1 95.0 97.8 0.9 High strength Plates with YS of India 80.1 84.4 89.1 5.5 530-900 MPa in Q&T condition Japan 63.0 62.7 63.6 0.5 for bullet proof vehicles, security S.Korea 55.8 56.4 54.6 (-)1.1 posts, penstocks, earth movers, dams and Bridges, API grades> Germany 39.2 40.0 40.4 1.5 100X HRC/Plates/Pipes are Russia 39.4 38.0 38.4 (-)1.3 some of the niche demand that World 1499.6 1501.3 1509.6 0.3 would seriously test the capa- Source: Short Range Outlook; WSA bilities of Indian steel producers

40 KaleidOKaleidOscope November, 2016 ARTICLE in meeting the emerging critical requirements. Rural and retail sectors are fast emerging as new consumption centres for steel. Commonly used items, TMT Bars, Light structur- als, Galvanised/Coated steel for rural housing, community halls, Primary health centres, small Bridges and Culverts, chairs, furnitures, fencing, storage Bins are in good demand. Major steel producers SAIL, Tata, RINL, JSW and JSPL have all set up rural outlets/ Shoppes/Steelmarts at remote locations to store and de- of conducting business and the recent amendments made in liver the above steel categories in the Company Act which has fa- small volume and also in pieces. excludes critical factors like cilitated the actual business op- Various awareness programmes Economic strength, financial erations and simplified the extant (Training for Masons, small growth, market size, taxes, tariffs company rules. These would be contractors, fabricators) are be- and subsidies, level of corruption further improved in the coming ing undertaken by SAIL, RINL, etc. in measuring the ease with which business is conducted and months including the Insolvency Tata in association with INSDAG and Bankruptcy Codes. for knowledge dissemination in a way, penalizes or fails to give During FY16 the areas where on the best practices in bar bend- credit to those economies that India has been complemented ing, safety practices, choosing display positive characteristics on concern electricity connectiv- quality steel for construction and all these aspects and surely, India ity by improvements in process related areas. is one of them. efficiency, payment of taxes by The aspect of easy operations by introducing electronic systems, Steps for enhancing the private enterprises in India trading across borders by elec- Business is indeed a critical consideration tronic submission and process- Future of Steel industry largely for enhancing the flows of FDI ing of documents for imports and depends on the Business outlook and FII that the country is ea- exports, enforcement of contracts in the country. The World Bank gerly looking forward to supple- by expanding dedicated venues report on Doing Business made ment the capital infusion in vari- to resolve commercial disputes. little ripple as it ranked India at ous sectors. One of the reasons Apart from these areas, India 130, a mere one notch lower than why India is looked down upon scores high in property registra- in the previous year and therefore as an attractive destination for tion within 7 days, getting cred- a little disappointing. But then it investment by the foreign entre- its, protecting minority investors. has to be appreciated that reforms preneurs is India’s recent abilities The weaknesses in enforcing con- tracts, dealing with construction or dismantling of the barriers to to unshackle the traditional hold permits and starting a business efficiency and productivity have of archaic rules and procedures, are found to be quite deep rooted. to face intense opposition from increasing the limits of FDI in Defence, retail, real estates, sim- It is apparent that the manner in the vested interest groups espe- plifying the contractual obliga- which business is conducted in a cially in a Parliament Democracy tions especially in PPP mode particular state in the country has like ours and therefore take time of project implementation and far reaching consequences on the to implement. introducing reforms in commer- steel business as well. Doing Business is not a compre- cial matters. A specific reference The government is quite firm in hensive measure of all aspects has been made in the report on implementing GST uniformly

KaleidoKaleidoscope November, 2016 41 ARTICLE from April’17 after achieving a Rural and retail sectors sectors is likely to pull up de- political consensus. It is expected are fast emerging as mand for manufactured and en- that steel would be grouped un- gineering goods, prefabricated der 12-18 per cent category and new consumption structures, the sectors which are may be marginally lower than the centres for steel. passing through a stagnant de- present rate. A number of other mand phase. Commonly used reforms involving real estate, en- The issue of Skilling in Iron and ergy, labour, environment, land items, TMT Bars, Light Steel sector to meet the gap be- acquisition, mineral exploration structurals, Galvanised/ tween the industry requirement and mine allocation, rural devel- and the existing supply of entry opment sectors and PPP mode of Coated steel for rural level persons passed out from project management are in the fi- housing, community ITIs/Polytechnic has been plagu- nal stages of implementation. All halls, Primary health ing the industry for long. The these would result in unleashing recently formed Iron and Steel the full growth potential of these centres, small Bridges Sector Skill Council (IISSSC) has sectors and would facilitate in- and Culverts, chairs, been mandated by National Skill vestment flow of corporates and Development Council (NSDC) un- furnitures, fencing, private entrepreneurs. der Ministry of Skill Development storage Bins are in good and Entrepreneurship (MSDE) Conclusion demand. Major steel to develop Qualification Package (QP) and National Occupational In world Competitiveness report, producers SAIL, Tata, Standards (NOS) for various India has improved its ranking job roles like Fitter, Electrician, from 71 (out of 140 countries) RINL, JSW and JSPL have Welder, Bearing Maintenance, in the previous year to 55 in FY all set up rural outlets/ Rigger, Dumper Operator, Coke 16. In Doing Business report the Shoppes/Steelmarts oven Battery operator and a host ranking of India at 130 out of 190 of others related to Iron and Steel, at remote locations to countries brings about the fact Sponge Iron, Rerolling, Ferro that competitiveness does not store and deliver the Alloys and Refractory segments, necessarily improve parameters above steel categories arrange training (short term in doing business. Cost competi- modular courses spanning 1-2 tiveness of Indian steel is well in small volume and months with hands on training) established inspite of high trans- also in pieces. through established Training portation costs, capital costs and Providers and Certify them after taxes. More steps towards en- proper assessment through estab- positive in favour of exports in the ergy conservation, efficiency pa- lished Assessment Agencies. The coming months. rameters and skill development certificates issued by the Council would enable Indian steel indus- On a medium term perspec- have been officially recognized for try to compete in the global mar- tive the singular factor restrain- employment by the Government. ket. With rise in Chinese export ing steel demand in the country The flagship programmes of offers; it is likely that the global is poor growth in Gross Fixed the Government, Make in India, prices become attractive proposi- Capital Formation as a percent- Smart Cities, Housing for All, tions for Indian exports and with age of GDP at around 30 per Swatch Bharat, Digital India and current restrictions on cheap cent against 45 per cent in China. Skill India have all enhanced import flows, thanks to the efforts Adequate Public investment in the role of steel significantly in of an appreciative Government, major infrastructure projects in shaping the transformation of a India emerges as a net exporter the country can only dispel the new and modern India. India’s in the coming months. During veil of uncertainty and precede dream of becoming a super pow- April-October’16 India has private corporate investment erhouse in steel would be real- imported 4.55 MT of steel which has been on the decline ized only if India emerges as a ro- against exports of 4.23 MT in the past few years. Growth in bust and vibrant economy in the and the gap is likely to turn infrastructure and Construction coming decade.

42 KaleidOKaleidOscope November, 2016 ARTICLE To be Steel Strong

Vineet K. Choudhary*

s we have witnessed for the industry underlying its im- too had a tipping point in 2008 India’s shining growth in portance in growth of economy. economic meltdown post Sub Asectors of ITeS, Software, We try to look at trade balance Prime Crises led Lehmann BPOs, Medical tourism, can it of steel, growth drivers, domes- Brothers collapse and trigger shine in the world of steel as well? tic manufacturing strength and of recession. Though the global Steel as product touching every- challenges to position Indian steel crude steel production kept in- one’s life is also one of the most Industry vis-à-vis global steel in- creasing except immediate next recyclable thing and it’s the core dustry of 1.6 Billion Ton a year. year of 2009 (pic1). Global pro- of infrastructure development duction has grown by 20% since and hence an economy’s strength Global Demand Evolution 2008. It’s interesting to note that indicator. India is among very few and the China Effect: 2008 during same period the global nations where successive govern- Game Changer price average dropped almost to ments have dedicated ministry Like many industries for steel half (pic2)

Pic.1 Pic.2

This defiance of demand-supply-price equilibrium level for the short run tells about the nature ofthis product-industry. Supply has increased more than increase in demand thus price dropped despite demand increase. A high capital intensive sector has very low capacity elasticity as for steel it is very difficult to reduce capacity for short time as the cost of restart of furnaces and coke ovens are very high. The steel story of China got momentum with run up to 2008 Beijing Olympics as the preparation required huge steel consumption as well as the famous double-digit dragon growth rate of GDP peaking to 15 % + supporting the capacity (pic3) .

*The Author is an alumnus of XLRI Jamshedpur and RMIT Melbourne, he has worked in senior positions across India, Europe and Middle East for various leading MNC organizations.

Kaleidoscope November, 2016 43 ARTICLE

Pic.3 major cost ingredients for steel steel mills as most of them are in mills is energy and a 27% im- themselves the economy driver of provement in efficiency over last their cities. Traditional (BF-BOF two decades is not enough. (Pic route) steelmakers have bigger 4) For integrated steel mills thus challenge here as emitting (88-71) owning coal mines has increas- 17% higher Co2 and they need to ingly become vital. buy more carbon credit at hefty Disruptive Technologies: Integ- cost. rated steelmakers with BF-BOF Over Supply: Since the maximum route find it hard to compete with capacity glut was in commodity scrap and DRI based steel makers grade of steel thus the biggest in terms of cost & agility price hit was also on commodity Customer Loyalty: Time again steel. With recent anti-dumping The egregious effect of 2008 eco- makers have tried to tie up long measures the price of steel has nomic crises caused sudden drop term contract with organised con- seen improvement and there is in demand and it forced Chinese sumers like Automobile manufac- renewed hope for further price govt to dole out various supports turers, Railways and Shipyards increase. Another measure has in name of subsidies and rebates but a slight decrease in offer can been global players consolidating to compete with low price to swing the consumer loyalty. with mergers, Nippon-Sumitomo boost export, a mayhem in world In Japan, ArcelorMittal- SNSSMC of steel as China accounting for Price Volatility: as the value chain JV in USA. Makers know that the more than half of the world’s to- up stream is very consolidated value lies in high grade steel for tal steel production and one extra with top 3 miners (BHP-Billiton, Oil & Gas Industry, Automotive, sneeze (few Million tons of extra CVRD-Vale, Rio Tinto) control- Nuclear and Power Generation export to Europe or Americas) ling majority of Iron ore supply, from China could bring ripples it leaves steel makers vulnerable world over. Recently, disturbed and that’s why big names like by cheap Chinese imports in EU, ArcelorMittal have major captive EU applied 65.1% to 73.3% anti- capacity for iron ore and coal. dumping duty for heavy plates Environmental Concern: Recent & 13.2% to 22.6% for hot rolled lock down of Riva (ILVA) steel in steel. Such has been China impact Italy by authorities for pollution on global steel market. norms violation is nightmare for any steel maker. Entire town of Challenges to Steel Riva being dependent on the steel Industry mill compounded the trouble and Cost competitiveness: One of the it’s the story for numerous major Industries and need of hour is cautious capex, R&D to innovate Pic.4 technologically as the demand is not the worry but to produce profitably to this demand is cur- rent global challenge. Makers have borne deep cut in bottom lines and the need to increase cost efficiency is more than ever before. Indian Steel Industry Dynamics: Opportunity and Future From net Importer (2013) to

44 KaleidOscope November, 2016 ARTICLE

Exporter (2014) & back to net im- in India was 60 kg against the an option. India with its strate- porter (2015). Where does it go world average at circa 220 kg. gic relations with Africa can play now? Its still among very few econo- stronger role in the development Trade Balance: Opportunity for mies which has sustained growth of African Infrastructure which India and poised for big infrastructure will directly benefit steel makers development in road & railway who are already present strongly • In 2015, import of 9.32 MT networks, ports and airports, into African Import market. The steel while exports declined affordable housings as well as Indian steel demand is slated to 5.59 MT in FY15 from 5.98 recently announced projects of to grow by 6.2% in 2015 and by MT during 2013-14 smart cities. 7.3% in 2016 as per the report • In FY15, the consumption of by World Steel Association-WSA steel grew to 76.99 MT These all are opportunity flood- gates. In coming years, a need while global consumption is ex- • Driven by infrastructure and for capacity increase can be pected to grow by 0.5% and 1.4%. automotive growth consump- around 50% once the consump- This is clearly a good indicator for tion is expected to reach 104 Indian steelmakers. tion crosses 100 MT a year. It’s MT by 2017 a huge ramp up required lest it should open doors for imports So, the conundrum is The macroeconomic indicators which will hit indiscriminately to despite these dynamics are unambiguous on growth for steel producers. With state hav- what is plaguing Indian Indian steel demand. India is Steel Industry? still far behind in per capita ing its own run SAIL and huge steel consumption. For FY15, investments ploughed in various private players it can hardly be Unprecedented Crises per capita consumption of steel of Debt surge & price collapse As on December 25, 2015, the total exposure of Indian banks to the steel sector was around ` 2,98,500 crores.* The Indian steel sector is highly leveraged (net debt/EBIDTA) basis. Balance sheets of many steel compa- nies reveal Interest Coverage ratio of less than 1 which in any ways must be greater than 1.3*. In layman’s language if this ra- tio is less than 1.33 then it is not able to generate enough profit to cover the interest cost. Had the prices would have been bet- ter the EBITDA or profits would have been higher to enable the producers meet its interest obli- gation comfortably. But the surge of interest cost and drop of prices together have been big double whammy to Indian Steel Industry bringing in precarious and vol- canic situation. Government has released slew of measures

* EY report on ‘Indian Steel – Strategy to Ambition’

Kaleidoscope November, 2016 45 ARTICLE

high grade plate and thin-gauge flat products. *(JOM journal, 53 (10) (2001), pp. 20-23) These technological advances will keep pressure on the cost and hence price southwards. Since Indian steel Industry is domi- nated by integrated steel mak- ers (from Blast Furnace route) it is more propitious for them to differentiate through their prod- uct offering and for that they should further diversify from commodity steel into high grade steel where they can own brand. Indian steel makers should in- like 20 % safe guard duty on im- Corex. Besides the development vest in newer technologies to re- port and fixing minimum import of ultra-high-powered electric- duce dependence on traditional price (MIP) for many steel prod- arc furnaces and reliable billet coaking coal requirement which ucts to help producers though it and bloom continuous-casting is being expensive, environ- will hit pockets of steel users as machines provided a low-cost ment unfriendly and depleting the prices go up and import be- route to produce lower qual- resource. Adoption of COREX comes costlier. ity steel long products, thus in- technology by India’s largest steel tegrated steel producers have company JSW is a positive step Depth of debt effect been completely displaced from towards this aim. There are lead- The average EBITDA margin of this low-end segment of the steel ing examples from global leader steel companies has dropped by market in developed countries. company ArcelorMittal how ef- over 40 per cent. Thus, many ad- The quality of steels produced via ficiently it responded to crises vances to the iron & steel sector are EAF is restrained by the level of in terms of resource allocation, under stress which may soon lead metallic residuals such as copper, capacity redistribution and cus- to non-performing assets if not nickel, and tin, in the scrap met- tomer centric missions supported addressed now,” the ISA stated. al charge However, continuous by aptly calibrated R&D invest- Steel EBIT margin dropped from improvements in EAF process ments. It’s a time to take a leaf or 36% in 2011 to just above 22%. control and the use of ore-based two from leaders and innovators According to an article published scrap is evolving. Besides several to outpace the average with cost in Business Line, new processes for producing hot & technology efficiency. “EBIT margin of JSPL hit the neg- metal are in various stages of de- For steel industry, it’s not the time ative for years consecutive drop- velopment around the world. For to top gear driving on a steep ping from above 40 % in 2011. example, technologies have been slope down (margin)and in addi- Indian Steel Association (ISA) is developed for the reduction of tion the road is slippery(debt). It calling for restructuring of debts iron ore or steel mill waste oxides needs a patient yet agile maneu- and moratorium which may give to produce a solid direct-reduced vering finding quickly its sweet short term relief.” iron product. Several processes spot in terms of niche and com- based upon the direct reaction of petitive advantage. Indian steel Road ahead: Invest fast & coal and iron ore in a rotary kiln, industry is at juncture which prudent on R&D, Capital such as the SL/RN process, have Malcolm Gladwell would say as Expenditure reached various stages of de- “Tipping Point” and if the highly Integrated steel mills are fast velopment since the 1960s.Thus leveraged industry can turn this challenged by evolving steelmak- mandated for integrated produc- challenge into opportunity it will ing technologies like Midrex and ers is to focus on high-quality, be steel strong.

46 KaleidOscope November, 2016 ARTICLE World Steel Association share concern over Rising Steel Production

Kunal Bose*

t was no-brainer that the high- ly excessive steel capacity and Iproduction in China, which accounts for half the global steel output and its unfairly priced exports most of the times taking the form of tidal waves washing the markets of receiving coun- tries would be at the top of the agenda for deliberations at the re- cently held annual general meet- ing of the World Steel Association (WSA) in Dubai. If the plaintiffs in this instance the importing countries hosting injured steel- makers expectedly peppered heed to growing crescendo of members as was amply evident their submissions with strongest protests, Beijing would exercise in their speeches was China possible words, the defendant its powers to rein in production raising steel exports by 2.4 per China, however weak might be and exports this year. WSA data cent to 85.1 mt between January its case made attempts to raise show China’s steel production in and September, the highest ever the bogey of protectionism and the first nine months of 2016 was for the period. A peek into the building walls against free move- up 0.4 per cent to 603.780 mt on kind of sneering that was part ment of goods. a year-on-year basis. Remarkably of Dubai proceedings could be China, which alone had a share China’s steel production in had from interviews given to the of 804 million tonnes (mt) of September advanced 3.9 per cent media by some participants on world steel production of nearly to 68.2 mt over the same month the sidelines of the WSA meet- 1.6 billion tonnes (bt) in 2015, in. The move to lift production ing. For example, Nucor chair- had to export 111.6 mt last year of this order has got much to do man and CEO John Ferriola who – higher than Japan’s production with benchmark steel rebar on was elected president of WSA for of 105.152 mt - as domestic use at the Shanghai Futures Exchange 2016-17 made scathing comments 672.3 mt showed a fall of 5.4 per averaging the highest in July- in an interview with S&P Global cent over the previous year. The September of any quarter since Platts in reference to the positive world outside China was proved the first three months of 2015. outcome of the series of US trade wrong in expecting that paying The shared concern of WSA action against steel imports from

* Kunal Bose writes from India for Metal Bulletin and Dry Cargo International, both of the UK. He is also a contributor to Business Standard.

KaleidoKaleidoscope November, 2016 47 ARTICLE

countries has shrunk. For exam- ple, the US steel production be- tween 2000 and 2015 fell from 102 mt to 79 mt. Protection from imports, special- ly if these are found to be backed by subsidies of kinds militating against free trade is important for the Indian steel industry, which must remain on course to build capacity of 300 mt by 2030 against about 120 mt now. The enormity of investment and mobilisation of all other resources, includ- China. He said: “Have we seen negligible that made the country ing skilled manpower needed benefits from it? Certainly. The a net importer of steel by a long to achieve the targeted capac- flat-rolled sheet cases – hot-band, margin last year. But when New ity in less than 15 years will not cold rolled and galvanised – have Delhi took a series of steps such be missed by any. This besides, been successful, and we’ve seen as minimum import price and the domestic steel market must a reduction in the import of sub- anti-dumping duty on several stay in good shape on a sustain- sidised products in those areas. steel products, some reactions able basis to justify investments And we’re pursuing trade cases were inevitable. According to in new greenfield or brownfield now on plate; rebar is coming up Narendran, the Indian industry capacity development and mod- again – we hope to have the same is prepared to deal with any such ernisation of mills in operation. kind of results there.” reactions. Building a greenfield steel mill While these are statements of At the same time, don’t expect will cost around Rs 6,000 crore facts that apply to other regions China to take things lying down. per 1 mt capacity. and countries also such as the In a well calibrated response, Because of years of unprofitable European Union and India, China Iron & Steel Association working, steel companies owe Ferriola made some testy (repeat Secretary General Liu Zhen Jiang more than Rs 3 lakh crore to vari- testy) remarks that must have claimed, which, however, the rest ous banks making the sector one infuriated China to no end. He of the world would not buy, that of the largest contributors to non- made no bones about the fact that his country had made “great ef- performing assets. The govern- “so many cases are being filed forts” to address the overcapacity ment is doing its part to secure and that they’re being so success- issue in the industry. In contrast, better steel prices through its fully prosecuted are testimony industry spokespersons from trade actions and raise steel de- to just how blatant the cheat- many other countries “spoke vol- mand by launching a series of in- ing has become... It’s about time umes criticising China but they frastructure related projects and we’re taking action... We have had little to show when it comes supporting house building on a laws in place. When people break to capacity phasing out in their large scale so that the steel indus- them, they need to be held ac- own lands,” Liu said. The fact, try is able to come out of the debt countable for breaking the law.” however, remains the industry trap before long. Simultaneously, Managing Director in the US and EU in particular the banks as they are putting pres- T.V. Narendran, who also headed have over the years scrapped sure on borrowing steel groups to WSA economics committee point- many high cost and environment start servicing loans also remain ing to the logic of Indian trade ac- damaging mills. A few iconic engaged in restructuring loans. tion said the “industry that has names in the industry in the two Nothing much has come out of invested, you don’t want to see regions have disappeared from the suggestion that steel groups it suffer because of unfair trade.” the map, many mergers and take- in distress and in requirement A year and a half ago, India’s overs have taken place and pro- of further funding get a strategic steel import duty rates were duction in developed Western partner ready to put in money in

48 KaleidOKaleidOscope November, 2016 ARTICLE the businesses and draw recovery Results of leading finally reached a turning point roadmaps and participate in their steel companies in for the better. But questions re- implementation. main as to the sustainability of The global recovery in steel is a India and elsewhere improvement in steel margins. In recent phenomenon linked prin- in Asia in the quarter an interview with Metal Bulletin, Edwin Basson, Secretary General cipally to Beijing pepping up in- ended September 2016 frastructure and house building of WSA, said: “I am relatively development. Consider this ob- are seen as a pointer confident that we (the steel indus- try) have negotiated the turning servation by The Economist (re- that the industry has peat The Economist): “As the past point. The question is now about decade has shown, the ups and finally reached a turning future growth. I don’t think it will be robust because there is no re- down of China’s housing market point for the better. But are of global significance. Totting gion at the moment that is strong enough.” Whatever that may be, up the property sector’s impact questions remain as India hopefully will continue to on investment and consumption to the sustainability of remain an exception. In its latest (all the furniture and gizmos that improvement in steel short range outlook for the metal, fill new homes), it accounts for WSA says Indian steel demand about a quarter of Chinese GDP.” margins. In an after having grown 5.3% to 80.1 No doubt the Beijing decision to interview with Metal mt in 2015 will rise 5.4% to 84.4 shore up the housing market had mt this year and then by 5.7% to helped the country’s GDP growth Bulletin, Edwin Basson, 89.1 mt in 2017. Indian demand to stabilise around 6.7%. This Secretary General growth stands out as the global is more than what most experts of WSA, said: “I am steel use will be up only 0.2% thought would be the case. But to 1.501 bt this year and then by is not a property bubble building relatively confident that 0.5% to 1.51 bt in 2017. And this is up in China, which may burst at we (the steel industry) to happen on a low demand base some stage? Opinions differ and have negotiated the of 1.499 bt shrunk by a 3% fall in steelmakers around the world are world steel use in 2015. Nearly keeping their fingers crossed. turning point.” 50% rise in steel prices this year is to be considered in the context of Causes for concern recent phenomenal rise in prices Chinese land prices this year, ac- steel industry with capacity of at of metallurgical coke, which ac- cording to an index of leading 100 least 1.2 bt is highly bloated with counts for at least 40% of steel leading cities, are up 66%; nearly many mills using old technol- production cost. ogy and belching huge amounts one-fifth of house purchases are Steel Authority of India Limited of smoke polluting the environ- for investment and not for owner Chairman, Mr. P. K. Singh says the ment. President Xi Jinping’s com- occupation. While this is national world will have to contend with mitment to trimming steel and average, investment buying is oversupply of steel in the “near coal capacity is not to be doubted. three times more in leading dis- future.” This means sustainability But over the decades, the local tricts of mid-sized cities; and the in steel fortunes cannot be taken authorities have managed to sub- same with Chinese house prices for granted in any geography. The vert central economic directives – the average rise in prices in situation as it obtains warrants, whose implementation would the past year is 16% but in major according to Singh, “protracted lead to revenue losses and jobs Chinese cities house price infla- trade measures to provide Indian tion was up to three times more. A shrinkage at the provincial level. steelmakers with a level playing property bubble building or not, This may happen with steel also. field.” New Delhi sees the logic countries hurt by Chinese steel Results of leading steel com- of Singh’s argument as is evident exports must go on putting pres- panies in India and elsewhere from the recent imposition of sure on Beijing to honour its com- in Asia in the quarter ended anti-dumping duty on imports of mitment to cut 150 mt capacity in September 2016 are seen as a wire rods of alloy and non-alloy the next five years. The Chinese pointer that the industry has steel from China.

Kaleidoscope November, 2016 49 ARTICLE

Indian Steel Industry on Steady Growth Path

Gaurav Choudhary*

t the time of indepen- products segments. In the mean- sector has been a major contrib- dence in 1947, India had time, the industry has gathered utor to India’s manufacturing Aonly three steel plants - sufficientmaturity and stability output. the Tata Iron & Steel Company, in business to overcome cyclical The Indian steel industry is very the Indian Iron and Steel swings in the industry’s business. modern with state-of-the-art steel Company and Visveswaraya Iron India is the world’s third-largest mills. It has always strived for & Steel Ltd and a few electric arc continuous modernisation and furnace-basedsteel plants. Rank Country Qty % up-gradation of older plants and (mt) change Thus, the period till 1947 wit- over higher energy efficiency levels. nessed a small but a viable steel 2014 India’s crude steel production industry in the country, which 1 China 803.3 -2.3 grew by 9.4 per cent year-on-year operated with a capacity of about 2 Japan 105.2 -5 to at 8.1 Million Tonnes (MT) in a million tonne. The entire indus- 3 India 89.6 2.6 August 2016. try was in the private sector. From 4 United 78.92 -10.5 During April-August 2016, crude the fledgling one million tonne States steel production in the country industry at the time of indepen- 5 Russia 71.11 -0.5 grew by 7 per cent year-on-year dence, the industry has now risen 6 South Korea 69.67 -2.6 to 39.98 MT. to be the 3rd largest producer of crude steel in the world and 7 Germany 42.67 -0.6 Over April - August 2016, steel holding at the same time the top- 8 Brazil 33.24 -1.9 imports fell 34.5 per cent year- place in the production of sponge 9 Turkey 31.52 -7.4 on-year to 3.01 MT, while steel iron. As per official estimates, 10 Ukraine 22.93 -15.6 exports rose 23.6 per cent year- the iron and steel industry ac- World 1622.8 -2.8 on-year to 2.38 MT. counts fora share of about 2% in Source: World Steel Association (WSA) Steel consumption in the country Gross Domestic Product (GDP). is expected to grow 5.3 per cent The steel industry in the coun- producer of crude steel (up from year-on-year to 85.8 MT during try has also developed capabili- eighth in 2003) and is expected to FY 2016-17, led by growth in the ties in producing a wide range of become the second-largest pro- construction and capital goods very sophisticated steel of global ducer by the end of 2016. sector. standards. The growth in the Indian steel Besides achieving the rank of the It is now capable of addressing sector has been driven by domes- 3rd largest global crude steel pro- diverse needs of the domestic end tic availability of raw materials ducer in 2015, Indiahas also made user industries as also compete such as iron ore and cost-effective a mark globally in the production globally in high value added steel labour. Consequently, the steel of sponge iron/Direct Reduced

* The author is Delhi Bureau Head, Moneycontrol.com and Economy Editor at Network 18.

50 KaleidOscope November, 2016 ARTICLE iron (DRI). Courtesy a mush- which could be used in defence Government Initiatives rooming growth of coal-based and satellite industries. Some of the other recent govern- sponge iron units in key mineral- JSW Group plans to invest around ment initiatives in this sector are rich pockets of the country, do- Rs 10,000 crore (US$ 1.49 billion) as follows: mestic production of sponge iron at Salboni in West Bengal to set The Government of India has ap- increased rapidly, enabling the up 1,320 Megawatt (MW) coal- proved a joint venture (JV) be- country to achieve and maintain based power plant, 4.8 million tween MSTC Ltd and Mahindra the number one position in the tonne cement plant and paints Intertrade Ltd, for setting up global market. With a series of factory over a period of next five India’s first greenfield auto shred- mega projects, either being imple- to seven years. ding and recycling facility, which mented or at the proposal stage, National Mineral Development will aide in saving of foreign cur- which once operational will re- Corporation (NMDC) has rency, as a result of import substi- write the structure of the steel planned toinvest Rs. 40,000 crore tution of scrap. industry and its dynamics;and a domestic economy carrying for- (US$ 5.96 billion) in the next eight Union Minister of Steel, Mines, ward the reform process further, years to achieve mining capacity Labour and Employment, has the future of the Indian steel in- of 75 Million Tonnes Per Annum launched the National Mineral dustry is definitely optimistic. (MTPA) by FY2018-19 and 100 Exploration Policy (NMEP), MTPA by FY2021-22, compared which will help to adopt compre- Investments to 48 MTPA current capacity. hensive exploration of non-fuel and non-coal mineral resources Steel industry and its associated Posco Korea, the multinational that would give a major boost to mining and metallurgy sectors Korean steel company, has signed the economy. have seen a number of major in- an agreement with Shree Uttam vestments and developments in Steel and Power (part of Uttam Metal Scrap Trade Corporation the recent past. Galva Group) to set up a steel Limited (MSTC) and the Ministry plant at Satarda in Maharashtra. of Steel have jointly launched an According to the data released by e-platform called ‘MSTC Metal Department of Industrial Policy Steel Authority of India Ltd and Promotion (DIPP), the Indian (SAIL) and ArcelorMittal, world’s metallurgical industries attracted leading steel maker, we have Foreign Direct Investments (FDI) agreed to set up an automotive to the tune of US$ 8.89 billion, steel manufacturing facility in respectively, in the period April India. 2000–March 2016. Iran has evinced interest in Some of the major investments strengthening ties with India in the Indian steel industry are as in the steel and mines sector, follows: said ambassador of the Islamic Republic of Iran, Mr. Gholamreza Tidfore Heavy Equipment Group, Ansari in his conversation with the China-based infrastructure gi- Minister of Steel and Mines, Mr. ant, is looking to enter the Indian . market by signing an investment agreement worth US$ 150 mil- Public sector mining giant NMDC lion with Uttam Galva Metallics, Ltd will set up a greenfield 3 to expand its Wardha unit along MTPA steel mill in Karnataka with South Korean steel major jointly with the state government Posco. at an estimated investment of Steel Authority of India Ltd Rs 18,000 crore (US$ 2.67 billion). (SAIL) and ArcelorMittal SA are JSW Steel has announced to add looking to set up a joint venture capacity to make its plant in (JV) factory in India to manu- Karnataka the largest at 20 MT facture high-end steel products by 2022.

Kaleidoscope November, 2016 51 ARTICLE

Mandi’ under the ‘Digital India’ Karnataka, Jharkhand, Orissa, by India’s comparatively low per initiative, which will facilitate and Chhattisgarh to set up plants capita steel consumption and the sale of finished and semi-finished having capacity between 3 to 6 expected rise in consumption due steel products. MTPA. SAIL plans to invest US$ to increased infrastructure con- The has 23.8 billion for increasing its pro- struction and the thriving auto- cleared amendments to the Mines duction to 50 MTPA by 2025. SAIL mobile and railways sectors. and Minerals Development and is currently expanding its capac- World crude steel production Regulation (MMDR) Act, which ity from 13 MTPA to 23 MTPA, at stood at 1622.8 MT during 2015, a will enable companies to trans- an investment of US$ 9.6 billion. decrease of 2.8% over 2014 based fer captive mines leases similar on provisional data released by to mines won through an auc- Demand supply gap World Steel Association (WSA). tion, and which is expected to With growth in demand for steel During 2015, Chinese crude steel lead to increased Mergers and outpacing growth in domes- production reached 804 MT reg- Acquisitions (M&A) of steel and tic production over the last few istering a decline of 2.3% over the cement companies. The Ministry years, imports have increased. previous year. China remained of Steel has announced to invest India was a net importer of steel the largest crude steel producer in modernisation and expan- till FY13, but turned a net ex- in the world, accounting for 73% sion of steel plants of SAIL and porter of the same in FY14. In of Asian and 50% of world crude Limited 2015, India imported 9.32 MT of steel production during 2015. (RINL) in various states to en- steel while exports declined to For India, indeed for the rest of hance the crude steel production 5.59 MT in FY15 from 5.98 MT the world, the level of action in capacity in the current phase during 2013-14. During FY11-15, the factory floors of China is of from 12.8 MTPA to 21.4 MTPA import of steel grew at a com- far greater consequence given the and from 3.0 MTPA to 6.3 MTPA pounded annual rate of 9.01 per economy’s size and its influence respectively. cent, whereas, exports increased over global commodity prices. The Minister of Steel & Mines has at a CAGR of 11.32 percent. What we are witnessing in the reiterated commitment of Central Total domestic demand for steel global steel industry is primarily Government to support the steel is estimated at 113.3 MTPA by of a consequence the slowdown industry to reach a production 2016-17. in China’s factory floors. For in- target of 300 MTPA in 2025. stance, in October, Thailand’s SSI The Ministry of Steel is facilitat- Road ahead announced it was closing down its Redcar works with the loss ing setting up of an industry driv- India is expected to become the of 2,200 jobs. If people across the en Steel Research and Technology world’s second largest producer world are buying fewer cars and Mission of India (SRTMI) in as- of crude steel in the next 10 years, sociation with the public and moving up from the third posi- houses, it is showing up in the private sector steel companies to tion, as its capacity is projected to slump in demand for steel. spearhead research and devel- increase to about 300 MT by 2025. Global steel demand has not re- opment activities in the iron and Huge scope for growth is offered turned to the levels seen before steel industry at an initial corpus Great Crash of 2008. World steel of Rs 200 crore (US$ 29.65 mil- demand growth fell 1.7% in 2015. lion). The Central Board of Excise Sluggish demand has led to a and Customs (CBEC) has issued fall in prices. The deceleration in a notification announcing zero China has only accentuated the export duty on iron ore pellets, crises. With local demand falter- which will help the domestic in- ing, Chinese steel and other pro- dustry to become more competi- ducers, some analysts point out, tive in the international market. had to export substantial quanti- Government has planned Special ties at lower prices, or even at a Purpose Vehicles (SPVs) with loss, to the rest of the world lead- four iron ore rich states i.e., ing to accusations of “dumping.”

52 KaleidOscope November, 2016 ARTICLE

Opportunities & Challenges in Steel Sector

Abhisar Jain CFA , Research Analyst Metals & Mining Centrum Broking Limited

ndia is the third largest steel concentrated in the Eastern zone the future demand growth and producer globally behind with 70% share. The National for increasing the export share to IChina and Japan and is set to Steel policy has set the goal to 10% by 2025. become the second largest pro- increase steel production to 300 In the context of the current steel ducer well before CY20 led by MTPA by 2025 (with East zone industry scenario and targeted rising domestic consumption and contributing ~250 MTPA) in growth under National steel pol- healthy capacity addition. The conjunction with new manu- icy, we take a closer look at the steel sector contributes to nearly facturing policy which aims at 2% of the country’s GDP and increasing the manufacturing opportunities & challenges for employs over 6 lakh people. share in GDP from current 16% the sector:- Current installed capacity of to 25% by 2025. The steel policy Indian steel industry stands at aims to develop the Indian steel Challenges 110 MTPA with production of industry into a global leader in High level of imports and its ~90 MTPA, implying a capacity terms of production, technology, mitigation by regulatory sup- utilization of ~80%. While long quality, competitiveness and ef- port – Sharp increase in cheap term demand growth of steel ficiency. The steel policy has imports (below cost in many in India has been close to the been framed keeping in mind cases) has led to major distress GDP growth rate but the same trend has not played out in last few years with demand growth being less than half of GDP. Slower demand growth coupled with huge increase in imports has led to reduction in utiliza- tion rates, lower steel prices & reduced margins, delay in com- missioning of new steel plants and ballooning of industry level debt which in turn has made steel sector the largest contributor to distress loans in the banking system. India’s steel capacity is largely

KaleidoKaleidoscope November, 2016 53 ARTICLE

issues. Coastal shipping and in- land waterways are the other key logistic areas which need to be encouraged and leveraged for reducing costs and managing bottlenecks. Raw material security – Passing of new MMDR bill has been a significant step in creating a level playing field for all miners (cap- tive as well as merchant) and fo- cuses on exploration, new mine developments and auction based resource allocation for all the major minerals. India has rich mineral resources of all key raw materials of steel like iron ore, for domestic producers in last few the required asset & operational thermal coal, manganese ore and years and GoI has acted swiftly restructuring. only scarcity is of coking coal. in providing support through a Land acquisition, statutory With new MMDR bill already a series of regulatory measures in clearances & infrastructure sup- reality, the need of hour remains the form of tariff barriers. With port - Land acquisition & ob- on identification and allocation global steel industry expected to taining various clearances (state, of resources by respective state remain in large surplus in steel, centre & environment related) governments. There needs to there would be a need of continu- has been an extremely cumber- be a material increase in en- ous monitoring and flexibility some process in India and proj- gagement between miners and in providing new as well as ects worth Rs. 900 bn have been state governments for explora- altering the existing tariff pro- shelved or abandoned in the past. tion & development of mines. tection measures on an ongoing While progress has been made Large investments into logistics basis to support the domestic in easing the clearances process and government’s infrastructure steel industry against unfair trade through electronic windows and support would also remain as key practices. new land acquisition policy has factors for mining growth also been mooted, there is still Management of current finan- lot of finer issues which need to Technological innovation and cial distress – Steel industry on be addressed. Also, there would emission norms – India lags a whole (barring a few efficient be need for large infrastructure behind its developed peers in large producers) remains in a support particularly in railways terms of technological advances massive financial distress with (which meets ~70% of steel in- & innovation for steel production limited scope of raising capital dustry needs) and ports.There mainly due to lack of R&D spend. through either debt or equity would be a need to increase the India has also been slack in routes. However, strong regulato- connectivity of railways and following strict emission norms ry support, improvement in steel roads to ports and to new policies for the domestic steel industry prices & margins, various debt re- would be required to provide the unlike other nations (particularly structuring schemes by banks and required technical and financial US, Europe & Japan which have reduction in interest rates have assistance in building deep-draft strict emission norms). The long helped improve the cash flows ports to handle large vessels, term sustenance and growth of of struggling steel players. The space tomanage increasing car- the Indian steel industry would challenge remains in exercise of go volumes and mechanization need major focus of the large prudence and best practices from for improved turnaround times. producers on these two aspects. managements in turning around Dedicated freight corridor (un- Indian steel industry needs to the operations, using the cash der construction) is a step in the act swiftly in adopting modern flows judicially and undertaking right direction for easing logistic technology and innovation is

54 KaleidOKaleidOscope November, 2016 ARTICLE required in achieving better coke Raw material security– huge scope for increased for- oven productivity, efficient water Passing of new eign collaboration between large usage, utilization of waste heat & domestic producers and global gases and reducing dust & CO2 MMDR bill has been steel giants who possess cutting emissions. a significant step in edge technologies and global creating a level playing best practices. The entry of steel Opportunities giants in the past has been inor- field for all miners Consolidation through M&A – dinately delayed and easing of With large number of small & big (captive as well as various regulatory processes can revive the same which would cre- producers struggling on account merchant) and focuses of operational inefficiencies and ate a more competitive and tech- debt pile-up, there is huge oppor- on exploration, new nologically advanced industry tunity as well as need of consoli- mine developments scenario. dation in the industry through and auction based Improving operational efficien- mergers & acquisitions which cies & reducing cost structure - can help improve the balance resource allocation for Domestic steel plants have huge sheet and operational efficiencies. all the major minerals. scope to improve upon their op- Indian steel industry also has India has rich mineral erational parameters and reduc- scores of small & mini mills pro- ing fixed cost structure. While ducing semi-finished steel which resources of all key Tata steel has been a pioneer in is further processed by second- raw materials of steel improving productivity through ary producers and this segment like iron ore, thermal best coke rates, JSW steel has the is under major stress with need best manpower productivity in of consolidation & restructur- coal, manganese ore the industry. PSU’s have lagged ing. The ability of steel industry and only scarcity is of the private players in operational to restructure & reinvent itself coking coal. With new efficiency and relentless focus on would depend on government the same in next five years can policy initiatives, proactive steps MMDR bill already help bridge the gap and make do- from existing management and a reality, the need mestic steel industry cost curve constructive role from financial of hour remains on being more competitive at a glob- institutions. al level. identification and Demand revival through invest- Build a strategy for exports – ment pick-up - Construction and allocation of resources Steel producers in India have infrastructure drives 55% of steel by respective state primarily been catering to do- demand in India while auto and governments. mestic demand and exports ac- capital goods account for 20% count for a very small portion share. Large investments are of their sales.This is in sharp being planned in various infra- contrast to other nations like structure projects and results sectors like auto & construction. Japan, Korea, China, Turkey etc. are already visible in sectors like Additionally, there exists a large Export market requires a clear cut roads & railways. GoI’s focus on untapped rural demand which strategy which involves a long housing for all, development of can be catered through increased term commitment to be a trusted smart cities and increased ur- reach and cost effective innova- supplier of high quality prod- banization are expected to re- tive solutions to replace other ucts & services. Indian steel in- sult in increased steel demand materials in use. dustry has an opportunity to from real estate and construction Increased foreign collabora- focus on exports market in sector. Auto sector has turned tion and entry of global steel medium to long term and entry around and lower interest rates giants – GoI has allowed 100% of global leaders into India going ahead bodes well for struc- FDI in steel sector through the can help bring in more competi- tural increase in demand from automatic route and there is tion on that front.

KaleidoKaleidoscope November, 2016 55 Media Relations Conclave for CEOs & Spokespersons SCOPE for Board Approved Media Relations Policy by PSEs

Mr. Bimal Julka (IAS - Retd.), Information Commissioner, CIC speaking at the Conlcave. Sitting on the dais (L to R) Dr. Jaishri Jethwaney, Program Facilitator, Dr. U. D. Choubey, DG, SCOPE, Mr. Nirmal Sinha, Chairman, SCOPE & CMD, HHEC and Mr. K. N. Dhawan, Adviser (CC), SCOPE.

Chief Executive is the first person responsible for communication within and outside the organization. Most of the CEOs or Directors, who reach top of the ladder, are experts- technocrats or econocrats, who have proved their potential before reaching the position. However, handling media is a different art and all may not be well equipped with this. Understanding the media and requirements, are important facets of Media Relations Management, Standing Conference of Public Enterprises (SCOPE) organized a two day Media Relations Conclave for CEOs and Spokespersons of Public Sector Enterprises (PSES) on November 09th-10th, 2016 at SCOPE Convention Centre, New Delhi. The conclave was inaugurated by Mr. Ved Prakash, Vice Chairman, SCOPE & CMD, MMTC while Mr. Milind Khandekar, Managing Editor, ABP News delivered the keynote address. Dr. U.D. Choubey, Director General, SCOPE delivered the welcome address. Dr. Jaishri Jethwaney, Programme Facilitator presented the overview of the conclave and Mr. R.K. Singhal, ED, SAIL gave the vote of thanks. Mr. Bimal Julka (IAS- Retd.), Information Commissioner and former Secretary (I&B) delivered the valedictory address while Mr. Nirmal Sinha, Chairman, SCOPE and CMD, HHEC gave the special address. Dr. U.D. Choubey, DG, SCOPE, Dr. Jaishri Jethwaney and Mr. K.N. Dhawan also spoke in the valedictory session.

56 KaleidOscope November, 2016 SCOPE News

Speaking at the Conclave from (L to R) Mr. Nirmal Sinha, Chairman, SCOPE & CMD, HHEC, Mr. Ved Prakash, Vice Chairman, SCOPE & CMD, MMTC and Dr. U. D. Choubey, Director General, SCOPE.

he conclave was orga- Vice Chairman, SCOPE, Mr. Ved strategies and strategize their nized with the aim to pro- Prakash in his inaugural address communication by preparing me- Tvide communication in- quoted John D Rockefeller and dia policy for their organization. puts to the CEOs, Directors and said, “Next to doing the right In the session, Impact of verbal Spokespersons to make them thing, the most important thing and non-verbal communica- communication leaders who can is to let people know you are do- tion when facing the camera – not only transform the company ing the right thing.” He said that the do’s and don’ts, Ms. Gouran but also use the power of com- PSEs have been the backbone of Lal, TV Anchor & Inter-Personal munication for brand building & national economy and they prac- Communication Expert, talked manage the media and the pub- tice best ethics in the industry. It about the authenticity in com- lic support. Director General, is important that they understand munication. Addressing the par- SCOPE, Dr. U.D. Choubey in his the importance of brand image. ticipants she emphasized on the welcome address highlighted the CMD MMTC also stressed on the need of carefully designing the contribution of public sector en- fact that PSEs need to develop message one wants to convey terprises and their best practices their communication strategy at and also be in the present. She in corporate governance. He par with the current trend and gave some important tips regard- advised all the CEOs and media CEOs, Directors & Spokespersons ing sitting postures, standing spokespersons to learn the art who are at the forefront of any or- postures, facial expressions and and science of interaction with ganization need to keep upgrad- voice modulation while facing media which is highly sensitive, ing their skills. the camera. to promote the brand of public In the next session on It was followed by a presenta- sector. He said that PSEs must “Understanding the changing tion on Converting Data into take the advantage of social me- expectations of media from or- Powerful Stories by Mr. Shishir dia to promote public sector and ganizational leaders,” Dr. Jaishri Sinha, Business Editor ABP thwart any negative publicity. Jethwaney talked about the cur- News. Through his presentation Delivering the keynote address, rent media scenario in the coun- he talked about efficiently us- Mr. Milind Khandekar said that try. She also said that one should ing data to convey the message. PSEs need to highlight their track media for own benefit. Dr. He said that mixing data into a achievements and be proactive Jethwaney also explained about story is always the best way to when it comes to approaching the paradigm shift brought by convey the message. A Media the media. Managing Editor, ABP the digital media. Dr. Jethwaney Quiz about Know your Media News also acknowledged the urged PSEs to start trending Quotient was conducted by Dr. immense contribution of Public themselves with positive news Anand Pradhan, Associate Prof., Sector in Indian Economy. He as PSEs have not received the IIMC. The quiz was informa- stated that Media Relations is coverage it deserves. She also tive where the participants were core to build the brand image of asked CPSEs to audit their au- explained about various media an organization. dit Communication tool and terminologies like Bite, Jumpcut,

Kaleidoscope November, 2016 57 SCOPE News

Beat, Lead, Cutaways and also about the various facts related to the digital media. After a tea break, a mock press conference was also organized on day one where the participants donned the cap of journalists in a simulation and Mr. K. Shyam Sundar, CEO, Air India Express became the chief spokesperson. (L to R) Mr. Milind Khandekar, Managing Editor, ABP News and Dr. Jaishri After the mock press conference Jethwaney, Programm Facilitator addressing the conclave. the whole session was analyzed by the peers and also by the ex- Director. Mr. Naqvi spoke at many PSEs are doing it through perts’ - Dr. Jaishri Jethwaney and length about the vernacular me- a third party but he added that Dr. Anand Pradhan. dia and its reach. He also asked SCOPE would be a better partner Day two began with the presen- PSEs to maintain a good relation of PSEs for it. tation by Mr. Samir Kapur, Vice with the local reporters and be After a tea break, there was a ses- President, Adfactors on the big prompt in their reply. Mr. Naqvi sion was one on one interview picture – understanding digital asked PSEs to answer every que- with CEOs of PSEs. Dr. Vartika media requirements. Mr. Kapur ry posed to them. Nanda, Former NDTV Crime spoke about the digital migrants Mr. Rishabh Kumar from beat head and HoD depart- and digital natives. He present- Corporate Communication Dep- ment of Journalism, Mr. Rajeev ed the business aspect of Digital artment of SCOPE made a pre- Media and how potential con- Ranjan Jha, Editor - Nivesh sentation on brand communica- Manthan and Mr. Ashutosh from sumers or organization are uti- tion through digital media. He lizing the digital space. He asked Bloomberg interviewed, Mr. K. highlighted the ways through Shyam Sundar, CEO, Air India PSEs to use digital space for their Public Sector could use Digital Express, Mr. Milind Dakhole own benefit. Platform to build their brand General Manager, Marketing, It was followed by an address image. During the presentation, Maharashtra Natural Gas Ltd., on Reaching out to stakehold- Mr. P.K. Sinha, DGM, HR &CC, Sh. S.M. Vaidya, GM (I/c), ers through Regional Language SCOPE said that SCOPE is taking IndianOil (Mathura Refinery), Channels where Mr. Qamar it up as a pilot project for PSEs to Mr. Amandeep Singh Narang, Wahid Naqvi, Ex. News Director promote them at digital platform. GM (CC), Indraprastha Gas AajTak/ Ex India TV Editorial He acknowledged the fact that Ltd., Mr. Vishwa Ranjan Gupta, Joint Director (Finance), Central Warehousing Corporation, Mr. Dushyant Kr. Sood, Executive Director, NTPC Ltd and Mr. Ashish Kansal, Sr. DGM & Head (CC), BEL. Post interview inter- actions were evaluated by the peers, interviewee and also ex- perts Dr. Jaishri Jethwaney and Dr. Anand Pradhan. In the Valedictory Session, Mr. Bimal Julka, Information Commissioner, Central Infor- mation Commission, highlighted Participants at Media Relations Conclave 2016. the changing scenario of media

58 KaleidOscope November, 2016 SCOPE News landscape with the advent of dig- to enhance their brand image as approved policy on media rela- ital media. Mr. Julka urged senior their contribution towards na- tions to establish efficient and ef- executives of PSUs to adapt to the tion building is next to none. fective communication channel. change and be proactive in pro- Chairman, SCOPE reemphasized Dr. Jaishri Jethwaney briefly moting themselves. about having media policy in spoke about various sessions held Delivering the special address, Public Sector. during the conclave while, Mr. K. Mr. Nirmal Sinha, Chairman, Dr. U. D. Choubey, Director N. Dhawan, Adviser, Corporate SCOPE and CMD, HHEC said General, SCOPE said that PSUs Communication, SCOPE pre- that PSUs need to embrace the need to build a strong relation sented the vote of thanks. The digital media platform in order with media so that during crises conclave was attended by CEOs, to promote Prime Minister’s vi- and adverse situations, media Spokespersons and Senior Exe- sion of e-Governance through persons have positive approach. cutives of Public Sector and a Digital India initiative. Mr. He also said that Public Sector number of prominent journalists Sinha also said that PSUs need should come out with Board and was appreciated by them.

SCOPE highlights commendable performance by PSEs in Public Procurement

Dr. U. D. Choubey, Director General, SCOPE addressing the Policy Round Table on “Smart Public Procurement of IT & ITeS”.

peaking at the Policy appreciated that despite of expressed PSEs concern to- Roundtable on “Smart multiple legislation and policy wards the malicious sincerity to Public Procurement of IT frameworks, the Public Sector delay procurement and policy S decision. He also emphasized & ITeS”, held on November 17, have adopted e-governance and 2016 at Indian Habitat Centre, e-procurement to escape hu- of providing a level playing field as corruption is common can- Dr. U. D. Choubey, Director man discretion. He said that cer in all sectors, be it public or General, SCOPE emphasized e-procurement has brought private. The programme was in- the importance of public pro- transparency and has given a augurated by Mr. K.V. Chowd- curement which forms 30 system in line with world best ary, Central Vigilance Com- percent of India’s GDP. He known enterprises. Dr. Choubey missioner, CVC.

Kaleidoscope November, 2016 59 SCOPE News

Dr. U.D. Choubey, Director General, SCOPE paying tribute to Martyrs by lighting a Diya on behalf of SCOPE and Public Sector Enterprises.

Programme on Government e-Market Place COPE supported a Programme on Government e Marketplace (GeM) Sfor launching a portal, organized by Directorate General of Supplies and Disposals (DGS&D) in collaboration with National Institute of Financial Management (NIFM) on October 27, 2016 at SCOPE Convention Centre, New Delhi. The high- light of the portal was given by Mr. Binoy Kumar, IAS, Director General, DGS&D . Speaking in the inaugural session, Dr. U.D. Choubey, Director General, SCOPE told that transparency is the most disinfecting commodity and the objective of this portal is to eliminate human discretion in pro- curement process thereby imparting the best practices in corporate governance. DG, Dr. U. D. Choubey, Director General, SCOPE speaking at the program SCOPE extended all the support to DGS&D on GeM. in this unique initiative.

60 KaleidOscope November, 2016 SCOPE News Special Technical Session by Public Sector Enterprises in CIC Annual Convention

corruption is a common cancer for both public and private sec- tor. Both are holding tax payers money, invested in plant, machin- ery and day to day working capi- tal. As such, all account payee money is public money and unac- counted money nothing but black money. Therefore, by way of widening the definition of “pub- lic money”, all enterprises, pub- lic or private, could be brought under the ambit of RTI and CAG. During question and answer ses- Dr. U. D. Choubey, Director General, SCOPE speaking at the 11th CIC Annual sion, the participants appreciated Convention. DG, SCOPE for highlighting the need to extend the RTI Act to the private sector. he two-day Annual and empowering the people of Earlier in the session presenta- Convention of the Central India which in turn has promoted tions were made by NTPC, REIL, TInformation Commission confidence of investors and brand SECI & GAIL. Mr. M. K. Goyal, (CIC) was held on 7th -8th of Public Sector Enterprises not AGM, NTPC while giving a pre- November, 2016 in New Delhi. only in domestic but also in inter- sentation on the RTI mechanism The convention was inaugurated national market. While highlight- in NTPC gave an overview of by the Union Home Minister Mr. ing the impressive performance company’s 47,228 MW capacity Rajnath Singh who emphasised of PSEs, he mentioned that total under operation with a net worth on need for a transparent sys- investment of 298 CPSEs is 10.96 of Rs.88,782 Cr. He said that tem and the important role of lakh crore while they earned a NTPC has a centralised system RTI in the same. The inaugural net worth of 9.85 lakh crore. He for RTI at the Corporate Centre, session was followed by various said that Transparency is the with one single CPIO and single technical sessions. An exclusive soul of corporate governance be- AA at corporate office and 46 session on “RTI & Public Sector sides Integrity, Accountability & APIO at projects and other busi- Undertakings” was held. Responsibility – the four pillars ness heads. All the matters related The session began with address of corporate governance. He also to RTI are dealt by CPIO heading of Mr. D. P. Sinha, Information expressed a few concerns with re- the RTI Cell. Enumerating the sta- Commissioner, Central Infor- gard to its effective implementa- tus of application received he in- mation Commission (CIC). Dr. tion. He strongly emphasized for formed that in 2016, though num- U.D. Choubey, DG, SCOPE also extending the provisions of RTI ber of applicants have increased addressed the session. In his ad- to non-government sectors by to 12% but 1st appeal reduced by dress, he appreciated and compli- way of widening the definition of 6%. Giving an analysis of RTI mented CIC for introducing RTI “public money”. He added that application received, he said that

Kaleidoscope November, 2016 61 SCOPE News maximum request for information and big size projects, monitoring session was given by Mr. S.B. that of 32% were related to HR their execution and complaint Mitra GM, Law, GAIL. Mr. Mitra department but mostly related to redressal resulting in transpar- gave a brief overview of the grievances of employees. These ency among all stakeholders. GAIL and shared the implemen- grievances range between topics The next presentation was given tation process of RTI Act 2015 in the company. There was a di- such as Recruitment, promotions, by Mr. Rajeev Bhardwaj, Director verse mechanism dealing with transfers, Contract Labour etc. He (HR), Solar Energy Corporation RTI matters. Single CPIO and 40 shared case studies to further ex- of India who said that RTI had ACPIO’s & 8 appellate authorities plain the functioning of RTI Act emerged with the idea of how to work through a dedicated RTI in the company. seek information. He gave a de- Cell, for the benefit of citizen. The This was followed by presenta- tailed look into the exemptions complete structure of this cell and tion by Mr. A.K. Jain MD, REIL and management of RTI appli- RTI guidelines are mentioned on who spoke about the growing cations. Before the enactment of the website of GAIL. Out of the relevance of the Act today. He RTI Act, Right to Information was application received, Mr. Mitra shared the important provision of held to be a fundamental right mentioned that 95% are from ex- the RTI Act 2005 and mentioned under the ternal applicants on issues such that information sought under but this too was under certain re- as contracts, recruitment etc. rest section 4(1)b of RTI Act is covered strictions. He shared that every 5% are received from the employ- under the RTI manual of the com- public authority must provide its ees of the company on issues like pany. He added that the channel administrative or quasi-judicial promotion, transfers etc. of queries and replies have been decisions to affected persons. He created in the company and how added that though exemptions The first appellate authority ex- this channel has become a perti- are limited to Section 8(c) and 9 amines the appeal and gives an nent part of the company’s cul- only, public authorities also us- opportunity for personal hear- ture. Sharing the status of RTI ing sections 7(a), 10 & 11 for not ing. He also shared case stud- applications he mentioned that disclosing the information. He ies wherein the decision of 1st since inception of RTI Act 2005, stressed that mere existence or Appellate Authorities was chal- REIL has 27 1st Appeal and 5, apprehensions of any exception lenged by CPIO through 2nd 2nd Appeal to CIC against total or provisions should not be the Appeal by CPIO. He expressed number of 168 RTI applications. ground for refusal of informa- concern for diversified infor- He suggested the need for analy- tion to the applicant. He said mation and different verdict by sis of RTI application and one that though PSUs are public au- CIC on the same issue. He also single window for RTI besides thorities but at the same time are suggested to extend Article 21 3 ‘Is’ for effective implementa- also business entities and com- to CPIO. Case studies of GAIL tion of RTI Act which include peting in the market, business CPIO challenging a decision by Innovation, Infrastructure and decisions and trading practices, FAA, proactive disclosures by the Implementation of the Act. hence should not be equated with company to reduce RTI appeals Mr. Jain also emphasized on the Government Department. were also discussed during the use of technology for prestigious The last presentation of the presentation.

62 KaleidOscope November, 2016 SCOPE News Steel Pavilion at India International Trade Fair 2016 Nisha Sharma Lipi Singh Sr. Manager (CC), Executive (CC) SCOPE

Digital India was the theme of 36th edition of the India International Trade Fair 2016 held in Pragati Maidan from 14th-27th November, 2016. Presenting their digital prowess, the Ministry of Steel (MoS) displayed their pavilion called ‘Steel Empowers Digital India’. This was a Minister of Steel, Mr. Birender Singh inaugurating the steel pavilion unique presentation of at IITF, 2016. (Image courtsey: SAIL) working of the industry that contributes approximately 2% to the country’s GDP. On display was diverse information right from the basics of how steel is made to the latest Digital technological processes being utilised in the industry. In 2014, India was the 4th largest producer of crude steel in the world after the United States of America but became the 3rd largest producer of steel in the year 2016. This was achieved owing several initiatives taken by the government to provide a conducive environment for the growth of the industry that employs over 6 lakh people in India. SCOPE representatives Ms. Nisha Sharma, Senior Manager, CC and Editor, Kaleidoscope & Ms. Lipi Singh, Executive, CC visited PSE pavilions including Steel Pavilion at IITF. A report of the same is as below.

he Steel pavilion was together was the fact that both the display. These included SAIL, a joint representation PSEs and Private Sector need to NMDC, RINL, ESSAR Steel, Tof the country’s Public come up with joint strategies to FSNL, HSCL, JPC, JSL, JSPL, JSW, and Private Sector companies. become globally competitive. KIOCL, MECON, MOIL, MSTC The idea behind them coming Various companies were part of and TATA Steel. Emphasis was

Kaleidoscope November, 2016 63 SCOPE News

laid on the fact that the industry “My desire is that public, private sector needs to work towards innova- and ministry will have to prepare a joint strategy” tion and R&D to develop new Steel Minister at IITF, 2016 products empowering industries to become self reliant and depend “We are constantly working towards innovative and cost- effective R&D solutions with the aim of becoming a global hub of less on imports. Digital is the new centre of excellences”, says Steel Minister at IITF, 2016 way forward and the exhibit by the Steel Ministry was a detailed look at how digital has come to play a major role in functions like mining, pelletization and other steps in making of steel. All in all, how the entire production and supply management of steel is now digitally enabled.

Digitization of Steel Making Process Union Minister of Steel, Mr. Birender Singh along with Secretary, It is said that storytelling is the Steel and other senior officials visiting the Steel Pavilion. most effective form of communi- (Image courtsey: SAIL) cation. Making use of the same, the making of steel which could “The entire industry will have to come up with joint strategies to be seen as highly scientific and take on the challenges being faced by the industry. My desire is cumbersome process was put that public, private sector and ministry will have to prepare them- up in story form at the pavilion. selves to jointly face the challenges coming from abroad. The gov- Step by step of ‘how steel is made’ ernment of India is focused on manufacturing sector and is imple- was put together with the help of menting aggressive Research and Development projects in diverse realms of Iron & Steel Technology under various categories such as miniature models and interesting Plant Performance Improvement (PPI), Product Development (PD), hoardings, which made it easy Scientific Investigation and Development (SID), Basic Research (BR) to understand for the visitors. To and Technical Services (TS). The major efforts are directed towards make it even more interactive, cost reduction and improvement in quality of Indian steel, in order an interesting lucky draw ques- to develop and deliver high quality steel products that add value tionnaire was distributed among to the customer‘s business, across the value chain,” said Minister students and visitors who were of Steel, Mr. Chaudhary Birender Singh at the inaugural function asked to fill in answers to ques- of the Ministry of Steel (MoS) Pavilion at the 36th edition of India International Trade Fair (IITF). tions like how is steel made, uses of steel in day to day equipment On this occasion, Aruna Sharma, Secretary, Steel, said, “In-line with and if steel was part of their life. PM Narendra Modi’s vision and Government of India’s flagship pro- gramme - Digital India, the Indian steel industry has taken a very This turned out to be an intrigu- proactive approach and enabled seamless integration of digital tech- ing experience for students, who nologies across processes, such as operations research, product de- could be seen reading up the dis- velopment, robotics & mechanical engineering, mining, pelletization, plays to understand and partici- raw material handling, coke oven, sinter plant, blast furnace, long pate in the lucky draw. product mill, continuous casting, SMS/BOF, flat product mill, supply chain management, procurement, retail and online sale of steel. The Use of digitalization in steel Digital Revolution holds many promises, for the steel sector in India, production were enumerated in it has already embedded transparency, efficiency, enhanced quality of Indian steel and most importantly improved safety standards, lead- nine steps as follows: ing to a digitally empowered society and knowledge economy.” Mining From SAIL’s Press Release Mining that is known as the first

64 KaleidOscope November, 2016 SCOPE News step in production of steel is when sedimentary rocks are extracted and converted into steel. Digital technology is now being used to make this process faster. These include systematic and scien- tific mining, digitally controlled mechanisms for crushing and screening, automated conveyor belts systems and Digital loading systems by stacker and reclaimer mechanism. This is followed by Pelletization, which is converting iron ore fines into “Uniform size iron ore pellets” that is used in Union Minister of Steel, Mr. Birender Singh at the Ministry of Steel Pavilion with blast furnaces or for production Digi-Man and Steel-Man. (Image courtsey: SAIL) of Direct Reduced Iron (DRI). The use of digital processes can play a vital role as India is the largest as online analysis of incoming basicity measurement, Analysis producer of DRI or sponge iron in and outgoing coal, online Cross of data and interface with auto- the world. Belt Elemental Analysers, Online mation system, Implementation blending model for desired ash of closed loop online Limestone Raw material handling percentage and improved Coke Dosing Control System. through Wi-Fi reliability are part of Digital pro- Thousands of tonnes of material cesses being utilised in producing Blast furnaces are then transported across shop coke from coal. use Digital floors through conveyor belts Blast Furnaces are used for almost controlled by Wi-Fi networks. Sinter Plants 70 percent of the global steel pro- These play a pivotal role as ut- Sinter is a much preferred input/ duction. They chemically reduce most accuracy of conveyor belts raw material in blast furnaces. It and physically convert iron ox- are achieved through them. improves Blast Furnace operation ides into liquid iron called “Hot Wireless Network based systems and productivity and reduces Metal” and digitization has only for centralised monitoring and coke consumption in blast fur- made this process swifter and wireless access for monitoring nace. Sinter plants collect iron better defined. Digital drives for parameters within these Wi-Fi ore fines with other fine materi- blower fan speed, computerized zones enhance the production of als at high temperature to create control for auto change of Blast conveyor belts. product that can be used in blast Furnace, Stoves, Wireless Mud furnace. The sintering technol- Gun & Drill Machine operation Digital enhancement in ogy has been developed over and automated valve control for Conversion of Coal the years for the purpose of us- precise raw material input have Coke is considered as an ideal ing iron, the metallurgical waste improved the working of Blast fuel for production of steel and of a steel plant and iron ore fines furnaces. it is produced by baking coal in in the blast furnace. Knowledge very high temperatures. If the combined with innovative tech- Basic Oxygen Furnace coke produced is of good qual- nologies can lift sinter plant to Oxygen blown through the blast ity, it can enhance the quality of the next level of automation. furnace at supersonic speed steel and reduce production costs Now digital technology is be- turns molten iron into steel. The of the same. The Automated pro- ing utilised across the country to manufactured steel is custom- cess Control of Parameters such achieve with real time sinter feed ised through Digital Distributed

Kaleidoscope November, 2016 65 SCOPE News

Control System. A distributed machinery, construction etc. of “Test Tube of Steel Industry” control system (DCS) is a plat- Digital technology like Thickness R&D activities were mentioned form for automated control gauges and High performance at the pavilion. Steel companies and operation of a plant or indus- Controller (HPC) based Mill have accomplished noteworthy trial process. This has been digi- Automation System for gauge work in the area of raw material tized over the years to achieve control, Provision for saving beneficiation, agglomeration and better efficiency in the plants. and retrieval of pass schedule product development. But the through HMI Screens in Control main focus has been to find solu- Continuous Casting posts and PC based operator’s tions to problems faced by pro- Molten Steel needs to be solidi- interface and Digital DC Drives. duction units of Steel plants. fied into “semi finished” billet, This concludes the different steps bloom or slab for further use. involved in making of steel. CSR in Steel Sector This is known as the “Gym” Steel companies form a large where steel is moulded as per re- The other features of part of the India workforce. They quirement. To achieve the correct the Steel Sector displayed at have been working towards do- the pavilion were: width, length, cooling and qual- ing business in ways that pro- ity digital processes come handy. duce social, environmental and Online Steel Stores The latest digital trends are - economic benefits in the com- Breakout Prediction System and The Steel Industry has become munities where they operate. To better lives of citizens, steel implementation at continuous more accessible to buyers over companies have been creating caster, real time thermal mapping the last few years. Online sites opportunities and implement- and auto width adjustment of the for buying steel are now helping ing CSR initiatives. Their efforts mould and Auto Mould Level buyers read and navigate about have seen underdeveloped vil- Controller. prices of steel and even request quotes online to purchase steel as lages turn into large industrial centres today. Institutes of tech- per their requirement. Long Product Mill nical training have also been Long products of steel include Steel companies both in Public created to impart knowledge TMT re-bars, wire rods etc that and Private sector in India have among their workforce .Keeping help build structures. India has adopted online mediums such in mind the need to create skilled produced rail tracks that can as e-procurement, e-auction and workforce several institutes like cover the distance between the online reverse auction to create National Institute of Secondary earth and moon. Automated transparency. With the e-Sales Steel Technology (NISST) and process control, interface condi- process, steel consumers, are as- Institute for Steel Development tion & monitoring system, con- sured of reliability at their door- & Growth (INSDAG) have been set up. IITF is a great opportunity trolled temperature rolling and step. Reliable information on and platform to engage with the controlled cooling gives a good availability of steel and quality of general masses particularly youth product with high degree of ther- material are few of the things of- of the country. The Steel Pavilion mo mechanical properties, multi fered on these sites. gave a hands-on-experience to dimensional accuracy and consis- R&D in Steel Sector its visitors to understand and tent mechanical properties. see how Digital India has been In order to provide accelerated empowering and strengthening Flat product Mill thrust on R&D, Ministry of Steel the Steel Sector. This attempt cre- Flat products include hot rolled (MoS) has been encouraging ated an interest among the array coil, cold rolled coil, coated steel Research and Development ac- of visitors who learned about the products, tinplate and heavy tivities both in public and pri- sector that is part of one’s day to plate used in pipes, heavy vate steel sectors. Under the title day life in simple way.

66 KaleidOscope November, 2016 SCOPE News

Conference Facilities at SCOPE Convention Centre

The centrally air-conditioned SCOPE Convention Centre at SCOPE Complex, Lodhi Road, New Delhi provides excellent conference facilities to PSEs, Govt. Departments, Autonomous Bodies, Institutions/NGOs etc. The Auditorium and other Conference Halls are equipped with projector and screen facilities, sound & light control room with recording & P.A. facility, etc. Details of the capacity of the Auditorium and other Halls, which are available on nominal tariff are given below.

Auditorium The chamber having capacity of 92 persons (86 Nos. Chairs + 6 Nos. Chairs on Dias) equipped with mikes on dias, tables & podium. Bhabha Chamber

The Auditorium having capacity of 310 persons (300 Chairs + 10 Nos. Chairs at stage) capacity equipped with mikes on dias and podium on stage. Mirza Ghalib Chamber

The chamber having capacity of 44 persons (24 Nos. Chairs on round table and 20 Nos. Chairs on sides) equipped with mikes on dias, tables & podium.

Fazal Chamber

The chamber having capacity of 108 persons (102 Nos. Chairs + 6 Nos. Chairs on Dias) equipped with mikes on table, dias and podium. Tagore Chamber

The chamber having capacity of 25 persons (15 Nos. Chairs on round table and 10 Nos. Chairs on sides) capacity with board room type sitting arrangement equipped with mikes.

Kaleidoscope November, 2016 67 Business Centre Annexe II

The Business Centre having capacity of 7 persons The Annexe-II having capacity of 25 Persons. equipped with multi point Video Conferencing System (1+3), at three locations at a time for National Tansen Chamber at UB & International both. Banquet Hall

The Tansen Chamber having capacity of 50 persons having stage and podium. The banquet hall having capacity of 500 Persons for the purpose of lunch & dinner. Sitting arrangement Amir Khusro Chamber at UB could be done for 90 persons. Annexe I

The Amir Khusro Chamber having capacity of 50 The Annexe-I having capacity of 25 Persons. persons having facility of stage and podium.

For Booking & Tariff details please contact Mr. M. L. Maurya, GM (Tech.) Mr. Nitin Kulshrastha, Asst. Manager, Engineering (Elect.) Mobile: 9313375238 Mobile: 9313989067 • Email: [email protected] STANDING CONFERENCE OF PUBLIC ENTERPRISES 1st Floor, Core No. 8, SCOPE Complex, Lodhi Road, New Delhi - 110003 Phone: 011-24311747, 011-24360101 • Fax: 011-24361371

68 KaleidOscope November, 2016 Conference Facilities at SCOPE Minar Convention Centre SCOPE Minar, an architecturally conceived in the form of two high rise curvilinear tower blocks sitting on a four storey circular Podium Block, is strategically located in Laxmi Nagar District Centre, Delhi -110092 and housing around 40 PSEs of repute. It is one of the known buildings of East Delhi. It has a very size Reception Foyer giving ambience look inside the building. There is a green environment all around the SCOPE Minar with large size planters all around. The building is also having state of art Convention Centre, comprising four halls i.e.

Convention Hall Meeting Hall

A large sized Convention hall having sitting capac- Meeting hall having “U” shaped table, with a meet- ity of 300 delegates. Various seminars, training pro- ing capacity of 65 delegates.Most widely used for grammes, presentations, get to gather etc. are con- small size meetings and training programmes, ducted in Convention Hall. It provides ambient and group discussion, power point presentations etc. peaceful environment for the programmes. SCOPE Academy of Public Sector VIP Lounge Enterprises

VIP Lounge having sitting capacity of 60 delegates. SCOPE Academy of Public Sector Enterprises The executives and higher level officers, Directors, (APSE) conducts induction level programmes for CMDs can use it as waiting lounge also. PSEs executives. It has three training halls, one with capacity of 40 persons and two halls with ca- pacity of 30 persons each for training purpose. There is a wide space for vehicle parking that cater for a capacity of 700 cars, including the newly built good quality Banquet Hall wherein 300 delegates can comfortably dine at a time, makes it special to deliver an all-round conducive meeting environment .

For Booking & Tariff details please contact Mr. M. L. Maurya, GM (Tech.) (M) 9313375238 and Mr. Shubh Ratna, DCE(C), SCOPE Minar (M) 9873398242, (O) 011-22458176, 22458178 • Email: [email protected] • [email protected]

Kaleidoscope November, 2016 69 70 KaleidOscope November, 2016 PSEs Ink MoU

WAPCOS signs Memorandum tional infrastructure projects, and dissemination of efficient technologies. As per the MoC, both sides of Cooperation with Financial intend to cooperate in the exchange of knowledge and Banking Association of and to exchange ideas, information and to col- laborate on problems and projects of mutual inter- Euro-Asian Cooperation, Russia est by integrating forces to work together in the WAPCOS Ltd. signed a Memorandum of Coope- framework of the Memorandum for the successful ration (MoC) with Financial and Banking solution of the statutory objectives of the sides on a Association of Euro-Asian Cooperation, Russia partnership basis. with the objective of deepening their strong eco- nomic and trade relations and taking into account NBCC signs MoU with the strengths and advantages of each side, intend to support and coordinate efforts in mutually ben- CII- IGBC eficial fields. Dr. Anoop Kumar Mittal, CMD, NBCC (India) Ltd. and Dr. Prem C. Jain, Chairman, CII- IGBC, signed MoU at NBCC Corporate Office, New Delhi

(left to right) Counselor to the President of the FBA EAC Mr. Alexander Balyberdin, General Director, FBA EAC Mr. Oleg Berezovoy, CMD, WAPCOS Ltd, Mr. R.K. Gupta and Vice President , Moscow Chamber of Commerce, Mr. Manish Dr. Anoop Kumar Mittal, CMD, NBCC with Dr. Prem C. Jain, Kumar. Chairman, CII- IGBC at the MoU signing ceremony.

The MoC was signed by Mr. R. K. Gupta, CMD, recently for promoting green buildings, capacity WAPCOS Ltd. and Mr. Oleg Berezovoy, General building and development of green building re- Director, Financial and Banking Association of sources. Senior Executives of both NBCC & IGBC Euro-Asian Cooperation. were also present on the occasion. This Memorandum of Cooperation is a result of a business meeting held by Financial and Banking Oil India signs MoU with Association of Euro-Asian Cooperation recently in Moscow with the representatives of the company University of Houston WAPCOS Ltd. The parties noted the high level Oil India Limited (OIL) with intent of augmenting of interest in the establishment and development its reserves base and maximising recovery from of cooperation, attaching high priority to moni- its aging oil fields has entered into an MoU with toring trends of development of the global eco- the University of Houston, one of the leading uni- nomic and financial system, initiating of interna- versities on Oil & Gas of the world. The MoU was

KaleidoKaleidoscope November, 2016 71 72 KaleidOscope November, 2016 signed recently in the presence of Mr. Dharmendra Pradhan, Minister of State (I/C), Petroleum & Natural Gas at New Delhi. The MoU, amongst others, is focused to collaborate in the fields of Improved Oil Recovery & Enhanced Oil Recovery for production enhancement from matured fields, seismic interpretation & reservoir characterization studies, improvement of drilling and well intervention practices and unconventional hydrocarbon studies. Mr. Subhash Muley, ED(Nuclear and RE), NTPC, Mr. Sanjeev Khirwar, IAS, Commissioner cum Secretary(Power), A&N & Mr. V.K. Jain, Adviser, MNRE signed the MoU in the presence of Mr. Upendra Tripathy, IAS, Secretary, MNRE, Mr. Gurdeep Singh, CMD NTPC, Mr. A.K.Jha, Director(Technical) and se- nior officials from MNRE and NTPC with MoU documents.

The power generated from these solar plants shall contribute towards increased Renewable Energy Deployment and Greening of A&N islands.

Senior Officials from Oil India and University of Houston during the MoU signing ceremony. NRL inks MoU with

It is envisaged that the collaboration will help OIL Dibrugarh University for to further consolidate and upgrade the various ini- Industry- Academia linkage tiatives the Company has undertaken to improve An MoU was signed recently between NRL and production and contribute significantly to the en- Dibrugarh University (DU) with an objective to ergy security of the country. This will also contrib- strengthen the Industry-Academia linkage through ute towards national obligation as set by Prime mutual collaboration. Registrar DU Mr. M.N.Dutta Minister to reduce import dependency of oil & gas and Senior GM(HR), NRL , Mr. A.K. Bhattacharya by 10 percent by 2022. signed the MoU in presence of Director(Finance), NRL, Mr. S.K. Barua; VC DU Prof. Alak Kumar NTPC signs MoU with Andaman Buragohain; Professor Emeritus DU Dr. B.K.Das; and Nicobar to set up 50 MW Solar Power Projects NTPC shall be setting up Solar Power projects of 50 MW capacity with Battery Energy Storage System at different locations in Port Blair in Andaman & Nicobar Islands. A Memorandum of Understanding (MoU) was signed between NTPC, Andaman & Nicobar Administration & MNRE in New Delhi by Mr. Subhash Muley, ED(Nuclear and RE), NTPC, Mr. Sanjeev Khirwar, IAS, Commissioner cum Secretary (Power), A&N & Mr. V.K.Jain, Adviser Registrar DU Mr. M.N. Dutta (sitting right) and Sr. GM(HR), MNRE in the presence of Mr. Upendra Tripathy, NRL, Mr. A.K. Bhattacharya (sitting left) signing the MoU in IAS, Secretary, MNRE, Mr. Gurdeep Singh, CMD the presence of Director(Finance) NRL Mr. S.K. Barua; VC DU NTPC, Mr. A.K.Jha, Director (Technical) and senior Prof. Alak Kumar Buragohain; Professor Emeritus DU, Dr. officials from MNRE and NTPC. B.K.Das and Dean R&D, DU Dr. P.K. Borua.

KaleidoKaleidoscope November, 2016 73 74 KaleidOscope November, 2016 Dean R&D, DU Dr. P.K.Barua and other senior of- The MoU is for geological & geophysical explora- ficials of NRL. tion of various minerals in State of Madhya Pradesh, The MoU shall benefit both the organizations and NMDC made intentions to invest during the Global help foster a closer relationship that is expected to Investors Summit held in October, 2016 for explo- promote mutual interests including organising joint ration for different minerals in various districts of events and sharing of knowledge & information Madhya Pradesh over an area of approximately through studies and interactions. The MoU would 7200 square kilometers. NMDC has explored sever- also facilitate NRL & DU to identify areas for inter al deposits for over five decades within and outside disciplinary research activities and jointly plan for the country and has established deposits of iron collaborative research in the socially and ecological- ore, copper, limestone, dolomite, bauxite, diamond, ly relevant fields for the development of the region. sapphire etc. NMDC is having the expertise in multidisci- plinary exploration and has recently tied up with NMDC inks Tripartite MoU with Department of Space for Remote Sensing & GIS Madhya Pradesh government, studies using geospatial techniques and is setting up its own laboratory for Remote Sensing & GIS MPSMCL studies at Hyderabad. As per the MoU, on success- In its endeavour of becoming a multifaceted and ful establishment of mineral blocks through this multi dimensional company, NMDC signed a proposed exploration, NMDC would be forming Tripartite MoU with Government of Madhya a JV with MPSMCL with equity 51:49 (NMDC- Pradesh (Directorate of Geology and Mines (DGM) MPSMCL) for mining of such blocks. through Mineral Resource Department (MRD)) and Madhya Pradesh State Mining Corporation NPCC signs MoU with the Limited (MPSMCL) recently at Bhopal in the Office of Chief Minister (MP). The MoU was signed by Mr. Ministry of Water Resources, Manohar Dubey, IAS, Secretary, Mineral Resources Department & MD, MPSMCL on behalf of MPSMCL, RD&GR Mr. P.K. Satpathy, Director (Production) on behalf National Projects Construction Corporation signed of NMDC Limited and Mr. V. Austin on behalf of a Memorandum of Understanding for 2016-17 Directorate of Geology and Mines, Madhya Pradesh with the Ministry of Water Resources, RD&GR re- in the presence of Chief Minister Madhya Pradesh cently. The MoU was signed between Mr. Shashi Mr. Shivraj Singh Chauhan.

Mr. Jagmohan Gupta, Jt. Secretary & Financial Advisor, Mr. Sanjay Kundu, Joint Secretary (PP), MOWR, RD & GR ex- Mr. Manohar Dubey, IAS, Secretary, Mineral Resources changing the MoU documents. Department & MD, MPSMCL, Mr. P.K. Satpathy, Director (Production), NMDC Limited and Mr. V. Austin, Directorate Shekhar, Secretary, Ministry of Water Resources, of Geology and Mines, Madhya Pradesh signing MoU in RD&GR & Mr. H.L. Chaudhary, CMD, NPCC. The the presence of Chief Minister Madhya Pradesh, Mr. Shivraj company set an ambitious target for achieving turn- Singh Chauhan. over of Rs.1300 cr. under excellent category for the

KaleidoKaleidoscope November, 2016 75 76 KaleidOscope November, 2016 Kaleidoscope November, 2016 77 78 KaleidOscope November, 2016 Financial Year 2016-17. Mr. Jagmohan Gupta, Jt. LNG Carriers. Cochin Shipyard Ltd (CSL) inked the Secretary & Financial Advisor, Mr. Sanjay Kundu, MoU at CSL, Kochi recently. The event was held in Joint Secretary (PP), MOWR, RD & GR and other the presence of CMD and senior officers of both CSL senior officers of MOWR, RD & GR and NPCC were and EIL. This initiative, under the ambit of ‘Make also present on this occasion. in India’ programme of the Government of India, aims at joint design and building small scale LNG Carriers. The MoU aims to leverage EIL’s strengths CSL & EIL Sign MoU in the process and systems engineering and CSL’s Cochin Shipyard Limited signed a Memorandum strengths in ship design and construction. This ini- of Understanding (MoU) with M/s Engineers India tiative is also in alignment with the Government of Limited for design and construction of small scale India’s vision of SAGARMALA and Inland Water Ways Development initiatives. The MoU shall cre- ate an LNG value chain ecosystem to cater to the coastal and inland water transport segment in the Indian sub- continent. The MoU’s scope also covers the mutual co-oper- ation for the vendor development, training, cer- tification process of skilled manpower between the organizations. CSL has also acquired license for the construction of membrane technology of Gaztransport Technigaz (GTT), France for the cargo MoU documents being signed between CSL & EIL . containment systems of large LNG vessels.

Two days Mega Employment Fair at CCL

aking forward the vision to bridge the “Skill Gap” through “Skill India” initiative under the Tdirective of MoC, Central Coalfields have launched several skill development programmes for the youth from rural background, particularly for project affected people. The aim of these programs is to make these youths employable and self- reli- ant. ITI, Multi Skill Development Center (MSDC), Mining Sirdar Training, Mobile repairing etc are some of the vocational training that is being provided by CCL. Central Coalfields under the leadership of its CMD Mr. Gopal Singh has been trying to secure em- ployment for these skilled and educated youths of ITI, Barkakana who were trained as electrician of Jharkhand through “Employment Fair” i.e. were secured job through campus placement. CCL Placement Drives. It is the first time that any com- had organized two days “Employment Fair” for pany is conducting placement drives for electrician, dependents/wards of CCL Employees/Ex Employees welders, fitters etc, to benefit the youths from the at its headquarter in Ranchi. At the end of the two rural and interior parts of Jharkhand. CCL had al- day Employment Fair, 421 candidates were in- ready organized two “employment fairs” earlier terviewed by 34 companies. The participating in January and April this year, for the students of companies included some big names like L&T, MSDC, in which 43 students were selected by dif- HEC, Cummins, Tata Motors, Usha Martin, STI ferent companies. Also all the students of first batch Marketing, Allsion etc.

Kaleidoscope November, 2016 79 80 KaleidOscope November, 2016 PSEs CSR Initiatives CRWC contributes to Swachh HAL, Prof. Anurag Kumar, Director, IISc and oth- ers recently. “This will go a long way in recognizing Bharat Kosh and honing skills and providing opportunities for Central Railside Warehouse Company Ltd (CRWC) youth at various levels in line with the Government’s as part of its ongoing corporate social responsibility Skill India initiative”, said Mr. Raju. Training activi- ties are expected to begin by March 2019. Mr. V.M. Chamola, Director, HR, senior officials of HAL and senior faculty of IISc were present on the occasion. The concept of a Skill Development Centre (SDC) has been in the pipeline for nearly eight years at IISc. The realization of this vision warranted working with active partners having common goals. HAL came forward to support the infrastructure for this Centre under their Corporate Social Responsibility (CSR) initiatives. HAL is shouldering the Corporate Social Respon-sibility (CSR) through various com- MD, CRWC, Mr. K.U.Thankachen handing over the Cheque munity development activities over the years. to Dr. Vivek Joshi, Joint Secretary, Ministry of Finance in Major areas of CSR are Infrastructure Development, presence of other officers from CRWC and the Ministry. Health, Rural Sports, Women empowerment, Education, Skill Development, Drinking Water, initiatives, contributed Rs. 11.30 Lakhs to ”Swacch Enriching the environment by Rejuvenation of Bharat Kosh .“ River Kumudvathi, Establishment of Wind Power Project & Solar Power Projects in Schools etc. HAL-IISc to Set Up Skill Deve- lopment Centre at Chitradurga IOC observes Swachh (Karnataka) Bharat Abhiyan Observing Swachh Bharat Abhiyan, IndianOil, The Bhoomi puja for construction of HAL-IISc Corporate Office, New Delhi organised several in- Skill Development Centre was performed at teresting activities for the employees and the general Challakere in Chitradurga district around 230 km public to sensitize people and spear awareness about from Bengaluru by Mr. T. Suvarna Raju, CMD, Swachh Bharat. To begin with, a talk on Swachhta was organised at Blind school, Sadiq Nagar in col- laboration with Sulabh International. The interac- tive session was taken by Mr. S. Chatterjee, Retd. IAS Officer from Sulabh International who in- formed children about the importance of maintain- ing cleanliness of the surrounding, school premis- es, toilets etc. After the session, IndianOil handed over Educational Kits in Brail, sports kit, IndianOil T-Shirt and Caps to the specially abled kids. IndianOil Retail Outlets being the face of the Corporation, a unique Swachh Bharat initiative was Mr. T. Suvarna Raju, CMD, HAL, at the Bhoomi Puja for HAL organised at company owned and company oper- IISc Skill Development Centre, Challakere, Chitradurga, ated Retail Outlets and a few other ROs at New Bengaluru. Delhi where a short skit was organized on Swachh

Kaleidoscope November, 2016 81 82 KaleidOscope November, 2016 has extended financial assistance of Rs. 493.71 lakhs under its CSR initiative to Indian Institute of Science, Bangalore, for the project “Establi- shment of 279 KWp photovoltaic solar panels on 3 no. of sites/building on department roof- tops to generate power for institutional grid and installation of 2200 no. of LED lights at various locations on the IISc, Bangalore campus” in Bangalore, Karnataka. The main objective of this project is to establish pho- Children of Blind School appreciating IndianOil’s commi- tovoltaic solar panels for power generation and LED tment to Swachh Bharat Abhiyan. lighting at various locations on the Indian Institute of Science (IISc), Bangalore campus in order to re- Bharat for the customers by Delhi State Office and duce the campus carbon footprint and dependence Delhi Divisional Office. Apart from the skit, the on non-renewable energy sources. customers visiting the ROs were handed over a hand sanitizer and a khadi towel and were urged to contribute towards Swachh Bharat Abhiyan and maintain cleanliness all around. Swachhta Ambassadors from Corporate Office and DSO and Delhi Divisional Office also inspected cleanliness of the RO as well sanitation facilities. To encour- age IOCians to continue their commitment and dedication towards Swachh Bharat Abhiyan, a nuk- kad natak was organised at the Corporate Office. Talking about Swachh Bharat Abhiyan at one of the IndianOil retail outlets, Mr. S. Mukherjee, ED (HR&CSR), CO said “Cleanliness cannot be taught, it has to be developed and each one of us have to commit and contribute towards this mission. With our pan India presence, we must spread awareness Mr. P. S. Hariharan, Zonal Manager, Southern Zone, REC about cleanliness across the length and breadth of and Mr. V. Rajarajan, Registrar, IISc exchanging the MoA the country. This would go a long way in realising documents. the dream of ‘Swachh Bharat’. The Memorandum of Agreement (MoA) in this regard was executed between REC and IISc in REC extends CSR support to Bangalore recently. Mr. P. S. Hariharan, Zonal Indian Institute of Science, Manager, Southern Zone, REC and Mr. V. Rajarajan, Registrar, IISc, signed the MoA in the presence of Bangalore Prof. Anurag Kumar, Director of IISc, and other se- Rural Electrification Corporation Limited (REC) nior officials of REC and IISc.

Kaleidoscope November, 2016 83 84 KaleidOscope November, 2016 Awards & Accolades to PSEs

CMD, NLC honoured with PSU by the renowned business journal, “Business World” recently at Mumbai, Maharashtra. The award was Leadership Award & Lifetime received by Mr. Y.M.S. Pillay, Dy.General Manager, Achievement Award NLCI on behalf of the CMD, NLC India Limited. Dr. Sarat Kumar Acharya, CMD,NLC India Ltd. has been conferred with “PSU Leadership Award” NMDC’s Bailadila Iron Mine at the 2nd eJharkhhad Summit-2016 held in bags FIMI Golden Jubilee Ranchi, Jharkand recently. The e-Jharkhand Summit-2016 was being jointly organized by Award for Excellence Department of IT, Government of Jharkhand and Adding yet another feather to its cap, NMDC’s Elets Technomedia. Bailadila Iron ore mine-Bacheli Complex bagged FIMI Golden Jubilee Award for Excellence. On the basis of best practices adopted, improvement over the last 10 years, excellence in environment man- agement, social awareness, health and safety, over- all mine performance and exemplary Reclamation & Rehabilitation (R&R) efforts by Bailadila Iron Ore Mine – Bacheli Complex, Federation of Indian Mineral Industry (FIMI) has awarded NMDC’s flag- ship mine for this One Time Special Award.

Dr. Sarat Kumar Acharya, CMD, NLCI.

The Chief Minister of Jharkhand, Mr. Raghubar Das presented the “PSU Leadership Award” to Dr. S.K. Acharya during the inauguration of the Summit. The award was received by Mr. R. Mohan, Executive Director/Commercial, NLCI , on behalf of Dr. Acharya. The award was presented to Dr. Mr. Arun Kumar Shukla, ED & Project Head, BIOM- Bacheli Acharya for his outstanding leadership skills and Complex receiving the award from Mr. Piyush Goyal, MoS commendable initiatives taken for the growth of the (I/C), Mines, Power, Coal, New & Renewable Energy. organization. Also, in recognition of his extraordinary Leadership The award was presented by Mr. Piyush Goyal, Skills and immense contribution to the field of Minister of State (Independent charge) for Mines, Human Resources, Dr. Sarat Kumar Acharya was Power, Coal, New & Renewable energy and re- presented a “Lifetime Achievement Award” during ceived by Mr. Arun Kumar Shukla, Executive 2nd BW “HR Excellence Awards 2016”, organized Director & Project Head of BIOM-Bacheli Complex,

KaleidoKaleidoscope November, 2016 85 86 KaleidOscope November, 2016 NMDC recently during the 50th Annual General prestigious Power Magazine of USA in the coal fired Body meeting of FIMI at New Delhi. generation category. The award was announced by It is pertinent to mention that having stiff competi- Power Magazine recently. The Power Magazine is tion for this one time special award, FIMI has short- the official publication of Electric Power covering listed BIOM Bacheli Complex of NMDC, Noamundi Business & Technology for the Global Generation Iron Ore Mine of Tata Steel and Ultratech Limestone Industry. Mine of Aditya Birla Group and based on the mine In the October 2016 issue of POWER magazine site assessment by the committee and presentation the winning Attributes of National Capital Power on environment, CSR, social awareness, health and Station, Dadri (coal based Station) has been men- safety, overall mine performance and exemplary tioned as “Consistently one of NTPC’s top perform- Reclamation & Rehabilitation (R&R) efforts, the ing plants, despite age and challenges in the Indian Jury Committee adjudged BIOM Bacheli Complex power market. Plant staff have worked to imple- for “FIMI Golden Jubilee Award for Excellence ment a range of innovative approaches to increase 2015-16”. plant efficiency without increasing costs, and has NMDC has been continuously working towards achieved 100 percent fly ash recycling and imple- sustainable development and installed Sewage menting a zero liquid discharge system.” Treatment Plant with SBR Technology at Bacheli. With the total installed capacity of 2,654 MW, NTPC The Company has undertaken Green House Gas Dadri is one of the largest power plants in India. (GHG) Assessment and disclosure of carbon emis- It consists of six coal-fired units, (4x210 MW and sions. Company has made significant contribution 2x290 MW), 829 MW gas fired combined cycle to the tribal belt of Bastar by making its presence plant, and a 5 MW solar farm. Adjacent to the plant since 1964 by opening of iron ore mine at Bailadila is a 5,300 MW switchyard, the largest in the nation, region. NMDC is running ITI at Bhansi, Polytechnic which connects to a 400kv transmission line. College at Geedam (Dantewada). The Company has also set-up and operating one of the world class BEML bags India’s Top Education Hub at Jawanga (Dantewada District) and has been in the forefront in extending support Challenger Award to the local people especially in the areas of educa- BEML Ltd. has been bestowed with the ‘Top tion, medicare and infrastructure development. Challengers Award’ instituted by Asaap Info Global NTPC Dadri bags Top Plant 2016 Award The National Capital Power Station, Dadri (NTPC Dadri) has bagged the Top Plant 2016 award by

Mr. Deepak Kumar Hota, CMD, BEML receiving the award from Mr. Peter Huyghebaert, Belgium Counsul General in the presence of Mr. Pratap Padode, Managing Director, ASAPP Info Global Group, Mr. Raghav Chandra, Chairman, NHAI, Mr. Dilip Suryavanshi, CMD, Dilip Buildcon and Mr. Sumit Banerjee, Chairman, ASAPP Info Global Group.

KaleidoKaleidoscope November, 2016 87 88 KaleidOscope November, 2016 Group during the 14th Construction World Annual Awards-2016. Mr. Deepak Kumar Hota, CMD, BEML received the Award of ‘Buildcon India’s Top Challenger 2015-16’ from Mr. Peter Huyghebaert, Belgium Consul General at a function held at Mumbai in the presence of Mr. Pratap Padode, Managing Director, ASAPP Info Global Group, Mr. Raghav Chandra, Chairman, NHAI, Mr. Dilip Suryavanshi, CMD, Dilip Buildcon and Mr. Sumit Banerjee, Chairman, ASAPP Info Global Group. BEML has won the Award for having raised its top-line and bottom-line, stayed profitable and Mr. R.S Dahiya, GM (I/c), BSO, IndianOil receiving the leadership award from Mr. Raghubar Das, Chief Minister of managed to keep its financial health within defined Jharkhand. debt limits, despite the slow pickup and sluggish- ness in the recent past. PSU Leadership Award IndianOil clinches 14th position conferred to IndianOil at 2nd in ‘Platts Top 250 Global Energy e-Jharkhand Summit IndianOil was honoured with the “PSU Leadership Company Rankings 2016’ Award” at 2nd e-Jharkhand Summit held at Ranchi Indian Oil Corporation Ltd. jumped to 14th from recently. The award was conferred by Mr. Raghubar 66th position among 250 global energy businesses Das, Chief Minister of Jharkhand, who also was the in a survey conducted by ‘Platts Top 250 Global Chief Guest of the Summit. The summit was attend- Energy Company Rankings 2016’. ed by a galaxy of leaders and senior executives of the industry. Mr. R. S. Dahiya, GM I/c, Bihar State Office, received the award on behalf of IndianOil. The e-Jharkhand Summit was structured by Department of Information Technology & e-Gov- ernance, Government of Jharkhand, with an aim to highlight the pro-people initiatives taken by the State Government believing that every citizen has a right to information pertaining to his own welfare needs and opportunities, to understand the process of governance and to know the rationale behind the decisions, which the State Government takes. The inaugural session commenced with the address of Chief Minister of Jharkhand entitled As many as 15 Indian energy companies made the “Digital Jharkhand: The Next ICTEC (Information, ranks against 14 last year. Platts attributed the refin- Communication, Technology, Electronic and ing sector strength to improved margins.”The rank- Cyber) led Knowledge Hub”. Apart from ing reflected the oil market’s biggest price collapse industry presentations, there were deliberations in nearly three decades, a resulting re-drawing of on DBT & Technology for BFSI Sector and the lines in the fuels mix and the successes of en- Government Services, importance of new age ergy players less exposed to the price rout triggered technology for securing cities & urban infrastruc- by OPEC’s defence of its global oil market promi- ture in the smart city ecosystem and on Jharkhand’s nence,” it said new start-up policy.

KaleidoKaleidoscope November, 2016 89 90 KaleidOscope November, 2016 PSEs Pay Handsome Dividend to Government

NFL presents Dividend of IndianOil pays 2.29 Cr. Rs. 53.25 cr. to Government dividend to Gujarat Governor National Fertilizers Limited (NFL) presented divi- A Dividend cheque for an amount of Rs. 2.29 Cr. dend of Rs 53.25 cr. to the Govt. of India for the year was handed over by Mr. M.R. Solanki, DGM 2015-16 in respect of the shares held by it. This is I/C (Ops), Gujarat State on behalf of Indian Oil the highest dividend paid by the company in the Corporation to Mr. O. P. Kohli, Governor of Gujarat. Government of Gujarat is holding 27 lakhs Equity last ten years. NFL has registered a Profit after Tax shares of IndianOil. Indian Oil Corporation Ltd., (PAT) of Rs. 197.09 cr. for the year 2015-16. The com- had recently declared a Dividend of Rs. 8.50/- per pany has achieved the best ever urea production of share of Rs.10/- each (85%) for the year 2015-16. Mr. 38 lakh MT in the year 2015-16. Solanki was accompanied by Mr. Jagdish Gupta, DGM (F), GSO.

Mr. M. R. Solanki, DGM I/C (Ops), GSO, IndianOil(2nd from left) handing over dividend cheque to Mr. O P Kohli, Governor of Gujarat. Also, seen (L-R)- Mr. E. Govardhanan, Mr. Manoj Mishra, C&MD, NFL presenting the Dividend of Rs. Sr. Manager (HR), & Mr. Jagdish Gupta, DGM(F), GSO. 53.25 cr. for the year 2015-16 to Union Minister (Chemicals & Fertilizers and Parliamentary Affairs) Mr. Ananth Kumar and Minister of State (Chemicals & Fertilizers) Mr. Mansukh Mr. Solanki apprised Mr. Kohli about various activi- L. Mandaviya in New Delhi recently. ties undertaken by IndianOil in petroleum & energy sector to make India self sustainable in the energy Mr. Manoj Mishra, CMD, NFL paid Dividend of sector. During the occasion, the Governor evinced keen interest in the petroleum sector & appreciat- Rs. 53.25 cr. to the Union Minister of Chemicals & ed the good work done by IndianOil especially in Fertilizers, Mr. Ananth Kumar recently in a cer- Gujarat State which is known as country’s Oil & Gas emony held at the Constitution Club, New Delhi. capital. Mr. Jagdish Gupta, DGM (F), explained in MoS (C&F), Mr. Mansukh Lal Mandaviya was also detail IndianOil’s growth plan & financial scenario. present on the occasion. The programme was also attended by senior officials of the Department of PDIL pays Dividend for Fertilizers and NFL. It is noteworthy that NFL has paid a cumulative dividend of Rs. 1,087.71 cr.s to the year 2015-16 the Government and other Shareholder till date Projects & Development India Ltd. paid dividend against paid up equity of Rs. 490.58 cr. @10.67 percent amounting to Rs. 184.58 lakh recently

Kaleidoscope November, 2016 91 92 KaleidOscope November, 2016 for the year 2015-16 through RTGS at bharatkosh. gov.in, Govt.of India Receipt Portal. PDIL has been paying dividend consistently to the Government of India except for the year 2014-15.

Payment of Final Dividend by AAI for the year 2015-16 Airports Authority of India (AAI) is a consistently profit making Public Sector Undertaking and pay- ing Dividend to the Government of India. Mr. A. K. Jain, MD, REIL, Mr. Vishvajit Sahay, Joint Secretary, DHI, Mr. Anant G. Geete, Union Minister of Heavy Industries and Public Enterprises, Mr. Anshu Prakash, Additional Secretary, DHI, Mr. Girish Shankar, Secretary, DHI, and Mr. M.P. Eshwar, CMD, IL Kota)

highest dividend for the year 2015-2016. Mr. Anshu Prakash, Additional Secretary, Mr. Vishvajit Sahay, Joint Secretary and Smt. Ritu Pande, Director, DHI were also present on the occasion. While acknowledging the work being done by REIL, significantly contributing to National missions, Mr. Anant Geete, Minister of Heavy Industries & Public Enterprises emphasized that PSUs should work Dr. Guruprasad Mohapatra, IAS, Chairman, AAI presenting in synergy with “Make in India” mission of the cheque as final Dividend for the year 2015-16 to Mr.P. Government and align their activities to make India Ashok Gajapathi Raju, Union Minister of Civil Aviation in the presence of AAI Board Members, Senior officers from a global manufacturing hub. He advised REIL to AAI and MoCA. focus on diversification and businesses in overseas market as country offers unlimited growth poten- tial for Public Sector Industry, to increase domestic AAI achieved a record turnover of Rs. 10825 cr., value addition and leverages across the borders. Profit Before Tax (PBT) of Rs. 3697 cr. and Rs. 2537 cr. as Profit After Tax (PAT) during the year 2015-16. Mr. A.K. Jain, MD, REIL, said that REIL is one of the AAI paid a Dividend of Rs. 761.21 cr. for FY 2015-16 largest off-grid SPV solution provider in the coun- to the Government of India. try and having very good reputation in the Dairy Sector for its milk testing equipments. Looking to AAI presented a cheque amounting to Rs. 482.21cr. the current market scenario for MW SPV Power as Final Dividend for the FY 2015-16 during a func- Projects, the Company is changing its strategy and tion held at New Delhi recently. aiming to align with the prevailing business model in Solar PV sector. REIL pays an all time high NPCC pays Dividend dividend of Rs.2.15 Cr. Mr. H.L. Chaudhary, CMD, NPCC Limited pre- Mr. A.K. Jain, MD, Rajasthan Electronics & sented the dividend cheque of Rs.1.02 Cr. for the Instruments Limited handed over the Dividend financial year 2015-16 to Smt. Uma Bharti, Union payment of Rs.2.15 Cr. to CMD, Instrumentation Minister for Water Resources, River Development Limited, Kota in the presence of Minister of Heavy & Ganga Rejuvenation ( MoWR RD&GR) in the Industries & Public Enterprises, Mr. Anant G. Geete presence of Dr. Sanjeev Kumar Balyan, Minister of and Mr. Girish Shankar, Secretary, Department State for Water Resources recently. CMD, NPCC of Heavy Industry (DHI). REIL paid an ever was accompanied by Mr. Manohar Kumar, Director

Kaleidoscope November, 2016 93 NTPC-SAIL Power Company Pvt Ltd (NSPCL) paid a total dividend of Rs. 120 cr. which included interim dividend of Rs.100 cr. and Final dividend of Rs. 20 cr. which works out to 12.24 percent of paid up equity capital share capital. The Dividend and Dividend distribution tax amounts to 58.50 percent of Profit After Tax of Company achieved for finan- cial year 2015-16. Ever since its inception in March 2001, NSPCL has been a continuous dividend paying company. Since inception, the Turnover & Profit After Tax of the Mr. H.L. Chaudhary, CMD, NPCC presenting the dividend Company grew at CAGR of 13.80 percent & 17.28 cheque to Ms. Uma Bharti, Union Minister (WR RD&GR). percent respectively. NSPCL recorded a total in- come of Rs.2299.87 cr. for Financial Year 2015-16 with profit before tax (PBT) of Rs.262.06 cr. and a (Engg) and Mr. Sahab Narain, Director(F) of NPCC. Profit After Tax (PAT) of Rs. 246.84 cr. The event was graced by Mr. Shashi Shekhar, Secretary, Dr. Amarjeet Singh, Officer on Special Duty, Mr. Jagmohan Gupta, Joint Secretary & BHEL pays Final Dividend for Financial Advisor, Mr. Sanjay Kundu, Joint fiscal 2015-16 Secretary (PP) of the Ministry of Water Resources, Bharat Heavy Electricals Limited (BHEL) paid a RD & GR. Minister applauded NPCC for declaring final equity dividend of 20 percent for fiscal 2015- dividend after a gap of almost 50 years. 16. In value terms, the total dividend paid for fiscal 2014-15 amounts to Rs. 98 Cr. With this, the com- NSPCL pays Dividend of Rs. 120 pany has maintained its impeccable track record of rewarding investors by paying dividends uninter- Cr. for FY 2015-16 ruptedly since 1976-77. Mr. Manash Sarkar, CEO, NSPCL along with Mr. S. A cheque of Rs.61.7 Cr. towards the final dividend V. Shahi, CFO, NSPCL presented the final dividend for the year 2015-16 on the equity (63.06 percent) cheque recently to Mr. Gurdeep Singh, CMD, NTPC. held by the Government of India, was presented Mr. A. K. Jha, Director (Technical), Mr. S. C. Pandey, to Mr. Anant G. Geete, Union Minister of Heavy Director (Proj), Mr. Saptarshi Roy, ED (CP& CC) Industries and Public Enterprises by Mr. Atul Sobti, and Mr. K. K. Sharma, Director (O) and Chairman CMD, BHEL, in the presence of Mr. Babul Supriyo, NSPCL were also present on the occasion. Minister of State for Heavy Industries and Public

Mr. Manash Sarkar, CEO, NSPCL along with Mr. S. V. Shahi, Mr. Atul Sobti, CMD, BHEL, presenting the dividend cheque CFO, NSPCL presenting the final dividend cheque to to Mr. Anant G. Geete, Union Minister for HI&PE, in the pres- Mr. Gurdeep Singh, CMD, NTPC. ence of Mr. Babul Supriyo, MoS, HI&PE and others.

94 KaleidOscope November, 2016 Enterprises. Functional Directors on the board of M.D, recently. Cochin Shipyard is also supporting BHEL as well as other senior officials of the Ministry the ‘Total Sanitation Program’ at Cherianthuruth of Heavy Industries & Public Enterprises and BHEL village of Kadamakkudy panchayat of Ernakulam were also present on this occasion. District. In order to make the village to achieve total In spite of fiscal 2015-16 being an extremely chal- sanitation, Cochin Shipyard is extending financial lenging year, BHEL recorded the highest-ever com- supportof Rs. 35 lakhs for providing home based missioning of projects in its history and the highest toilets to all houses of Cheriyanthuruth island. order booking in the last five years in fiscal 2015-16, As a part of Swachh Bharat Abhiyan and as an ef- ending the year with significant traction in growth fort to contribute to the total sanitation mission of drivers. Enhanced focus on project execution re- Kerala, Cochin Shipyard has taken the responsibil- sulted in BHEL creating history by way of commis- ity of renovation of the Koithara Park of Panampilly sioning/synchronizing an all-time high 15,059 MW Nagar, Kochi. The total expenditure is expected to of power generating equipment during the year. be Rs.30 Lakhs. Its continued maintenance also will Despite intense competitive pressure in the power be taken up by CSL. and capital goods markets during the year, BHEL Cochin Shipyard has committed Rs. 50 lakhs achieved the highest order booking in the last five for the construction of toilets in fifteen Govern- years, at Rs.43,727 Cr., a 42 percent leap over 2014- ment schools in Kannur district towards pro- 15. The company ended the year with a total order motion of sanitation among school children. book of Rs.1,10,730 Cr. for execution in 2016-17 and Cochin Shipyard has also earmarked Rs.1.8 cr. beyond. towards Swachh Bharat Abhiyan projects during the Financial Year. Cochin Shipyard Ltd’s commitment towards HUDCO Pays dividend to the Swachh Bharat Abhiyan and Ministry of Rural Development Suchitwa Mission Dr. M. Ravi Kanth, CMD, HUDCO presented the dividend cheque of Rs. 20.73 cr. to Mr. Narendra On the occasion of declaring Kerala as the first Open Defecation Free state in India,CMD, Cochin Shipyard, Mr. Madhu S. Nair handed over Rs.50 Lakhs to the Chief Minister of Kerala, Mr. PinaraiVijayan, for the successful implementation of the mission, in the presence of Director Technical Mr. Sunny Thomas, and Head CSR Mr. Varghese

Dr. M Ravi Kanth, CMD, HUDCO presenting the dividend cheque to Mr. Narendra Singh Tomar, Minister for Rural Development and Panchayati Raj.

Singh Tomar, Minister for Rural Development and Panchayati Raj. Mr. N.L. Manjoka, Director (Corporate Planning), HUDCO and Mr. Rakesh Mr. Madhu S Nair CMD, Cochin Shipyard Ltd. handing over Kumar Arora, Director (Finance), HUDCO were Rs.50 lakhs to Chief Minister of Kerala, Mr. PinaraiVijayan also present.

Kaleidoscope November, 2016 95 ITDC Declares 15 percent of the Prime Minister. The corporation has decid- ed to adopt more monuments apart from Qutub Dividend Minar under the initiatives during 2016-17 under India Tourism Development Corporation (ITDC) the CSR activities. conducted its 51st Annual General Meeting in New Delhi recently. The Corporation closed the year once again with the remarkable performance. The NBCC pays Dividend of Rs.108 turnover of the Corporation during the Financial Cr. to the Government Year 2015-16 was Rs.465.69 cr. The net profit before Mr. M. Venkaiah Naidu, Minister of Urban tax has been recorded to Rs.32.42 cr. during 2015-16. Development received NBCC’s Dividend Cheque The profit after tax was Rs.22.55 cr. The highlights of Rs.108 cr. for FY 2015-16 from Dr. Anoop Kumar of the AGM was the declaration of a dividend of 15 Mittal, CMD of the company. percent amounting to Rs.12.86 cr. approximately as recommended by the Board in the meeting held The Dividend was presented to the Minister, at in May, 2016. Out of Rs. 12.86 cr., an approximate amount of Rs.11.20 cr. will go to the Government of India. The meeting was chaired by Mr.Umang Narula, IAS, CMD,ITDC. The Corporation has shown a significant improvement in the operational efficiency. Overall occupancy during 2015-16 was 52 percent as against 47 percent during 2014-15 with flagship Hotel ‘The Ashok’ recording occupancy of 54 percent during 2015-16. To meet the challeng- es of dynamic market situation, the Corporation is focusing more towards improving the quality and range of services through its various verticals Mr. M. Venkaiah Naidu, Minister of Urban Development receiving the Dividend Cheque from Dr. Anoop Kumar i.e. Ashok Group of Hotels, Ashok Events, Ashok Mittal, CMD, NBCC. Tours & Travels, Ashok Consultancy & Engineering Services, Ashok Institute of Hospitality & Tourism a function held recently and was also graced by Management and Ashok International Trade Mr.Rajiv Gauba, Secretary (UD), Mr. D.S. Mishra, Division. Addl. Secretary (UD), Directors of NBCC and other To improve overall performance, the Corporation senior officers of the Ministry & NBCC. Considering has undertaken aggressive sales and marketing ini- the impressive performance of the Company dur- tiatives in India and abroad. The Corporation has ing FY 2015-16, NBCC has paid 100 percent divi- participated in many Travel Marts and Exhibitions dend this time which is an increase of 45 percent as and has tied up with on-line international and do- compared to the last year.It may be mentioned that mestic travel agents. The Company has tied up during the FY 2015-16, NBCC has posted a turn- with Amadeus - Global Distribution System (GDS) over of Rs.5759.86 cr., PBT Rs.441.33 cr. and PAT for three Delhi based hotels for better distribution Rs.311.11 cr. of inventory. The Company has also implemented Channel Manager Software with facility of pool in- ventory for dynamic pricing. Further Smart Hotel NRL pays highest ever Initiatives have been implemented to get customer Dividend to Government of experience and use analytics to improve perfor- mance and bring out change in service delivery stan- Assam for 2015-16 dards. Under CSR Initiatives during 2015-16, the NRL paid dividend of Rs. 63.6 cr. to the Govt. of corporation has adopted Qutub Minar for maintain- Assam for the financial year 2015-16, the highest ever ing cleanliness as per objective of the Corporation. during a year. Govt of Assam hold 12.35 percent eq- The Corporation has also constructed two toilets at uity shareholding in the Company. Final dividend Churu (Rajasthan) under “Swachh Bharat Mission” cheque of Rs. 31.79 cr. was handed over recently

96 KaleidOscope November, 2016 on the occasion were Mr. K.K. Jalan, Secretary, MSME, Mr. S.N. Tripathi, AS&DC (MSME), Mr. Manoj Joshi, JS, MSME and Mr. A.K. Mittal, Director (Finance), NSIC and officials of Ministry of MSME and NSIC.

NTPC pays Total Dividend of Rs. 2762.23 cr. for FY 2015-16 NTPC Limited paid a total dividend @ 33.5 percent Dividend cheque for the financial year 2015-16 being of its paid-up capital for the financial year 2015-16, handed over to Chief Minister of Assam, Mr. Sarbananda amounting to Rs. 2762.23 cr.. The dividend payment Sonowal by MD NRL Mr. P. Padmanabhan (3rd from right) is 4th highest among PSUs. The Company had paid in presence of Director (Technical ) NRL Mr. S R. Medhi(2nd interim dividend @16 percent amounting to Rs. from right); Director(Finance) NRL Mr. S. K .Barua(1st from 1319.27 cr. recently. The Company has paid the final left); Principal Secretary to the Govt. of Assam, Industries and Commerce Deptt. Mr. Ravi Capoor(2nd from left) and dividend @17.5 percent amounting to Rs. 1442.96 cr. few NRL officials at Guwahati. on September 30, 2016. The RTGS advice for the transfer of Rs. 1006.38 to the Chief Minister of Assam Mr. Sarbananda cr. to Government of India, being the share of Sonowal by MD, NRL, Mr. P. Padmanabhan in pres- Government of India in the final dividend, was pre- ence of Director (Technical) NRL, Mr. S R. Medhi, sented recently by Mr. Gurdeep Singh, CMD, NTPC, Director (Finance) NRL Mr. S. K .Barua, Principal to Mr. Piyush Goyal, Minister of State (Independent Secretary to the Govt. of Assam, Industries and Charge) for Power, Coal, New & Renewable Energy Commerce Deptt., Mr. Ravi Kapoor and few NRL and Mines in the presence of Mr. Pradeep Kumar officials in Guwahati. This is in addition to the in- Pujari Secretary, MOP. Mr. K. Biswal, Director terim dividend of equivalent amount handed over (Finance), NTPC, Mr. A. K. Jha, Director (Technical), to the Govt. of Assam in the month of March 2016.

NSIC pays record dividend Mr. , Minister of MSME was given a dividend cheque of Rs. 29.05 cr. for the year 2015-16 by Mr. Ravindra Nath, CMD, NSIC in the pres- ence of Mr. Giriraj Singh, Minister of State MSME and Mr. Haribhai Parthibhai Chaudhary, Minister of State MSME. The Dividend paid by NSIC is the highest ever dividend paid by NSIC. Other officials present

Mr. Gurdeep Singh, CMD, NTPC, presenting dividend cheque to Mr. Piyush Goyal, MoS (I/C) for Power, Coal, New & Renewable Energy and Mines in the presence of Mr. Pradeep Kumar Pujari Secretary, MOP and other senior officials from NTPC.

NTPC, Mr. U. P. Pani, Director (Human Resources), NTPC and Mr. S.C. Pandey, Director (Projects), NTPC were also present on this occasion. NTPC Ltd. has paid a total dividend of Rs. 1995.28 cr. to the Government of India for the financial year 2015- Mr. Kalraj Mishra, Minister of MSME receiving the dividend 16. This is the 23rd consecutive year that NTPC Ltd. cheque from Mr. Ravindra Nath, CMD, NSIC. has paid dividend.

Kaleidoscope November, 2016 97 Union Minister of Shipping visits SCI

reviewed the performance of SCI. He emphasized that SCI must endeavour to improve upon its operational performance and contribute to revenue growth. He also recommended that the company should look into new business opportunities and must encourage in-house innovations.

Naval War College Delegation visits SCI A Naval War College (NWC) dele- gation led by Rear Admiral Monty Khanna, NM, Commandant, Mr. Nitin Gadkari, Union Minister of Shipping alongwith Sr. Officials from SCI. NWC visited the Head Office of The Shipping Corporation of India Ltd (SCI), Mumbai recently r. Nitin Gadkari, Union Menon and her team in sav- for an interaction with the se- Minister of Shipping ing the lives of seven fishermen. nior officials of SCI. In addition Mvisited the Head Office While addressing SCI’s senior to the Commandant, the del- of The Shipping Corporation management, Mr. Gadkari shared egation comprised of 2 Directing of India Ltd (SCI) recently. His the Prime Minister´s vision for Staffs and 38 Senior Officers. visit began with the inspection India’s growth and talked about On behalf of SCI, Capt. Anoop of Guard of Honour presented maritime led nation growth proj- Kumar Sharma, CMD and other by the Cadets of SCI´s Maritime ects such as SagarMala, Inland Directors participated in the in- Training Institute (MTI) at Powai, Waterways etc. He also highlight- teractive session. Rear Admiral Mumbai. Then, Mr. Gadkari paid ed on India’s ‘Act East’ policy and Monty Khanna, Commandant his respects by garlanding the the company’s recent foray into and the Directing Staffs were wel- busts of Indian national leaders Iranian market (development comed with floral bouquets. located in the central lobby of SCI of Chabahar port etc). Minister The session began with a presen- Head Office. Mr. Gadkari was tation by Mr. S. Hariharan from escorted to the SCI Board Room CMD’s Secretariat. The presenta- where the review meeting was tion was followed by a Q&A ses- scheduled. Prior to the review sion wherein NWC Officers posed meeting, SCI’s corporate film questions on maritime common followed by a special short film interests, Indian shipping in- on Capt. Radhika Menon was dustry, current shipping freight screened. CMD, SCI informed the market, security threats, strategic Minister that Capt. Menon would role of SCI in nation building etc. be receiving her IMO Bravery On conclusion of the interactive Award during the IMO Session session, Rear Admiral Khanna, scheduled recently. Minister presented Capt. Anoop Sharma was very impressed with the with a memento and Col. Joshi, short film. He was also apprecia- Directing Staff, NWC thanked tive of the brave efforts of Capt. SCI for the arrangements.

98 KaleidOscope November, 2016 Personalia

Mr. Rajiv R. Mishra Mr. M. V. Gowtama Mr. V. Kalyana Rama Mr. S. K. Chaudhary CMD, WCL gets additional takes charge as CMD, has taken over as CMD, is appointed as CMD, charge of CMD, ECL. BEL. CONCOR. IRCON.

Mr. Saptarishi Roy Mr. Vinod Shenoy Mr. S. Jeyakrishnan Mr. R. K. Sabharwal is appointed as takes charge as Director is appointed as Director appointed as Director Director (HR), NTPC. (Refineries), HPCL. (Marketing), HPCL. (Commercial), EIL.

Mr. A. K. Mishra Mr. Subir Chandra Mr. Gautam Bhattacharya Mr. D. K. Sood is appointed as Director takes charge as Director takes charge as takes charge as Executive (Tech/P&P), CCL. (Tech/Oprns), CCL. CVO, NALCO. Director (CSR/R&R), NTPC.

KaleidoKaleidoscope November, 2016 99 Mr. R G Rajan, former CMD, RCF and former Chairman, SCOPE and FAI was recently given the lifetime achievement award by Indian Institution of Industrial Engineering (IIIE) at the 58th National Convention in Nagpur for his significant contribution in the field of chemicals and fertilisers, petroleum and natural gas and petrochemical industries in India.

CCL participates in First BRICS Trade Fair 2016

CL showcased its various new initiatives towards CSkill India development and other CSR activities during the first BRICS Trade Fair 2016, or- ganized by Ministry of Commerce in New Delhi recently. Delegates from China, Russia, South Africa and other dignitaries visited CCL stall and appreciated vari- ous new initiatives taken by the company for promoting sports, providing jobs to trained youths of Jharkhand etc. The first BRICS Trade Fair is a major initiative Visitors at CCL’s Stall at BRICS Trade Fair 2016. proposed by the Mr. Narendra Modi last inclusive and sustainable growth. Mr. Juan Rui, GM, Nanjing year during his address at the CCL has showcased its education HuaRun Bioengineering Co. Ltd, BRICS Summit in Ufa, Russia. In project in which meritorious boy China along with his colleagues line with the overall core theme (CCL Ke Lal) and girls (CCL Ke visited CCL stall and they were for BRICS in 2016, the focus of the Ladli) are being provided free ed- briefed about the company’s ac- Trade Fair was ‘Building BRICS ucation in Ranchi. The company tivities like how the company —Innovation for Collaboration’. also showcased “Kayakalp Model shaped career of M.S. Dhoni, CCL has made an endeavor by of Governance” which is leading Indian skipper in his early stage placing CSR, an integral part to Inclusive Growth of the com- and selected 78 children in 2016 of their work culture through pany and under its many welfare for grooming them in Sports “Kayakalp Model” and this reit- schemes are undergoing the CCL Academy at Hotwar Sports erates their commitment towards including Ranchi. Complex, Ranchi.

100 KaleidOscope November, 2016 Prime Minister Lays Foundation Stone of Varanasi City Gas Distribution Project

eralding the arrival of The laying of the foundation stone time in the country. The project, ‘Urja Ganga’ in the city of heralds the start of construction of with an estimated capital invest- HVaranasi, Prime Minister the CGD project which will bring ment of Rs.1,000 crores, is expect- Mr. Narendra Modi recently laid eco-friendly fuel natural gas to ed to connect 50,000 households the foundation stone of the City households, vehicles and indus- with piped natural gas (PNG) and Gas Distribution (CGD) project tries in the holy city of Varanasi. provide compressed natural gas in a function recently in the pres- The project is part of GAIL (India) (CNG) to 20,000 vehicles through ence of Governor, Uttar Pradesh Limited’s Jagdishpur – Haldia 20 CNG stations. About 800 km of Mr. Ram Naik, Union Minister of and Bokaro – Dhamra Pipeline steel and medium density poly- State (Independent Charge) for project (JHBDPL), popularly ethylene (MDPE) will be laid in Petroleum and Natural Gas, Mr. known as ‘Urja Ganga’. the city as part of the project. With Dharmendra Pradhan, Union the coming of the CGD project, it The Prime Minister also dedicat- Minister of State (Independent will be possible to give five lakh ed the 765/ 400 KV GIS Varanasi Charge) for Communications and LPG connections to households in Power Station, inaugurated the Minister of State for Railways, rural areas. Varanasi Postal Region, dedi- Mr. Manoj Sinha, Union Minister cated the Expansion Project of The 2,540 km JHBDPL project is of State for Human Resources Diesel Locomotive Works (Phase being executed at an investment Development, Dr. Mahendra of Rs 12,940 crores, which includes - I), laid the foundation stone for Nath Pandey, Union Minister 40% capital grant (i.e. Rs 5,176 doubling and electrification of of State for Health and Family crores) from the Government of – Varanasi Rail Line, Welfare Ms. Anupriya Patel, India. It will pass through five released a commemorative post- Minister of Khadi and Village states, i.e. Uttar Pradesh, Bihar, age stamp on Varanasi City and Industries, Government of Uttar Jharkhand, Odisha and West laid the foundation stone of Pradesh, Mr. Brahmashankar Bengal, covering 40 districts. Perishable Cargo Centre. Tripathi, Member of Parliament GAIL has also been entrusted Mr. Keshav Prasad Maurya, The Varanasi CGD project will with developing CGD network in Member of Parliament Mr. be developed simultaneously seven cities enroute the pipeline, Ramcharit Nishad, Varanasi with the Jagdishpur – Haldia and i.e., Varanasi, Patna, Jamshedpur, Mayor, Mr. Ram Gopal Mohale Bokaro – Dhamra Pipeline project, Kolkata, Ranchi, Bhubaneswar and a host of other dignitaries. which is being done for the first and Cuttack.

Kaleidoscope November, 2016 101 PSEs observe Vigilance Awareness Week

Vigilance Awarness Week is observed in organisations to raise awareness and commitment of PSEs towards highest standards of ethical conduct, honesty and integrity in organisation.

Vigilance Awareness Week CMD of National Aluminium Company (NALCO). Dr. Chand made this observation while inaugu- observed in BHEL rating the Vigilance Awareness Week at NALCO’s Mr. Atul Sobti, CMD, BHEL administered the pledge Corporate Office recently. to employees on the inaugural day of ‘Vigilance Mr. Chand emphasized on the use of technology Awareness Week’ at the Corporate Office of BHEL. in controlling corruption in an organization. He said that NALCO has taken up several initiatives to strengthen the vigilance mechanism in the com- pany, including signing of the Integrity Pact and im- plementing e-tendering and e-procurement. “The company is soon going to implement a Reward System to motivate the vigilant employees and to encourage others to be aware about the rules and regulations,” informed Dr. Chand.

Mr. Atul Sobti, CMD, BHEL administering the pledge with employees at the Corporate Office of BHEL.

The CMD stressed that every employee should re- main vigilant and work towards enhancing the rep- utation of the organisation through higher trans- parency. The messages of dignitaries were also read out on the occasion. Functional Directors and other senior officers of the company were also present at the event. Mr. K.B. Singh, IPS, DG & IG of Police, Odisha alongwith Dr. Tapan Kumar Chand, CMD, NALCO at the inauguration NALCO observes Vigilance of Vigilance Awareness Week. Awareness Week Mr. K.B. Singh, IPS, DG & IG of Police, Odisha, “While affirmative action is required for compliance graced the occasion as chief guest and stressed of rules and regulations in a system, there is a need on conducting meaningful public participation in to upgrade technology and change organizational eradicating corruption. culture to strengthen the vigilance mechanism and Mr. Biswaranjan Samal, IAS, CVO, NALCO de- curb corruption,” said Dr. Tapan Kumar Chand, livered the welcome address and introduced this

102 KaleidOKaleidOscope November, 2016 year’s theme ‘Public Participation in Promoting A. Kaliyamoorthy, Superintendent of Police (Retd.) Integrity and Eradicating Corruption.’ He stressed was the Chief Guest. on adopting new practices to strengthen transpar- In his chief guest address, Mr. Kaliyamoorthy, elab- ency in an organization and highlighted that all ele- orated on the theme of the celebration, Public par- ments of a system should work in unison to achieve ticipation in Promoting Integrity and eradicating vigilance goals. corruption. He emphasised on providing quality On the occasion, the Vigilance Awareness pledge and integrity pledge were administered among the employees. Mr. A.K. Murthy, GM(Vigilance) pro- posed a vote of thanks.

SAIL observes Vigilance Awareness Week Observance of Vigilance Awareness Week com- menced at SAIL with the administering of pledge by Chairman, SAIL, Mr. P.K. Singh. Chairman, SAIL along with Directors of the company and other of- ficers paid floral tribute to the portrait of Sardar Mr. Sarat Kumar Acharya, CMD, NLCI, inaugurating the Vallabh Bhai Patel. Messages received on the occa- Vigilance Awareness Week by lighting the traditional lamp, sion from various dignitaries were read out by the at Learning & Development Centre, Neyveli. Also seen are Mr. Rakesh Kumar, Mr. Subir Das, Mr. V. Thangapandian, Mr. Directors of SAIL. P. Selvakumar , Directors of NLCI and Mr. A.Kaliyamurthy, Former Superintendent of Police.

education to the children who are the future citizen of India. Dr. S.K. Acharya CMD , NLCI said that he wanted every human to fight against greed and lead a disciplined life. He wanted everyone to follow the systems and procedures and not to deviate them as no one is above the system. He added that several e-portals are available nowadays with which cor- ruption can be avoided and requested not to misuse the same for taking vengeance. Earlier Dr. Acharya released the special edition of the House Journal of Vigilance Department, Lignite Eyes. Officials of SAIL taking pledge during Vigilance Awareness Week in presence of Chairman, SAIL, Mr. P.K. Singh. On behalf of NLCI, special programmes in con- nection with Vigilance Awareness were arranged for the School and College students at Chennai, During the week long celebration many activi- Madurai and Tuticorin. Also talk shows were ar- ties like Debate, Quiz, Essay Writing, Skits, Walk ranged on behalf of NLCI in Doordarshan. & Run and Drawing competitions were organised across SAIL plants/units and in many educational institutions. Observance of Rashtriya Ekta Divas and Vigilance Awareness Vigilance Awareness Week Week-2016 in AAI at NLCI Dr. Guruprsad Mohapatra, IAS, Chairman, AAI The Vigilance Awareness Week celebration 2016 at administered the pledge of Rashtriya Ekta Divas NLCI was inaugurated by Dr. S.K. Acharya, CMD and Vigilance Awareness week 2016 recently to a NLCI at Learning and Development Centre. Mr. large number of officials gathered on this occasion.

KaleidoKaleidoscope November, 2016 103 mortem. He further stressed on the role and importance of individuals in combating corrup- tion as in a democracy, “ Yataha praja tatha Raja” is the reality . Chief Guest of the function, Mr. Ch. D Tirumala Rao, IPS,Addl.DGP (CID), while addressing the gathering accentuated the power and potential of an individual in combating corruption cannot be undermined as “journey of thousand miles begins with a single step”. He further stressed the need for exemplary punishment and isolation of corrupt of- Dr. Guruprsad Mohapatra, IAS, Chairman, AAI administering ficers. Mr. Rao said corrupt individuals might es- pledge of Rashtriya Ekta Divas and Launch of Vigilance cape from the eyes of the system but nobody can Awareness Week in presence of Mr. S. Raheja, Member escape from inner conscience. (Planning), Mr. S. Suresh, Member (Finance), Mr. Anuj Aggarwal, Member (HR), Mr. Yatendra Kumar, IAS, CVO and Mr. T. Premnath, Executive Director (Admn.), AAI. Vigilance Awareness Week

Airports Authority of India observed the Vigilance observed in MCL Awareness Week 2016 from 31st October to 5th Mahanadi Coalfields Limited (MCL) CMD, Mr. November 2016 at all Airports in India. A.K. Jha inaugurated Vigilance Awareness Week Speaking on the occasion Mr. Yatendra Kumar, 2016 as the company organised a series of aware- IAS, Chief Vigilance Officer, AAI conveyed that ness programmes for spreading mass awareness to Vigilance Awareness Week should be sustained curb corruption in the society. and become an intrinsic part of our day to day con- duct, rather than limiting to mere tokenism. Dr. Guruprsad Mohapatra, IAS, Chairman, AAI ad- dressed the officials and highlighted the importance of Rashtriya Ekta Divas and Vigilance Awareness Week. Vigilance Department has also planned vari- ous activities during the Vigilance Awareness Week. These activities include pledge Administration and lecture by eminent speakers during the Vigilance Awareness Week 2016.

Dredging Corporation of India Limited calls for Public Mr. A.K. Jha, CMD, MCL at the Vigilance Awareness Week. Participation in promoting Mr. Munawar Khursheed, IRPF, Chief Vigilance integrity and eradicating Officer read out the message of the Central corruption Vigilance Commission and formally welcomed all the guests to the seminar on ‘’Public Partici- Inaugural function of Vigilance Awareness pation in Promoting Integrity and Eradicating Week (VAW) 2016 was observed jointly by Dredging Corporation of India Limited (DCIL) Corruption’’. and Visakhapatnam Port Trust (VPT) in DCIL After his message to employees, Mr. Jha also ad- recently. Mr. V.V.S.Sreenivas, IRSME, Chief ministered a ‘Satarkata Shapath’ to all the employ- Vigilance Officer, in his welcome address, ees and unveiled the posters created for spread- emphasized the need to strengthen the systems ing awareness, Value Card for Coal Indians, Core to prevent corruption rather than doing post- Values of Coal Indian.

104 KaleidOKaleidOscope November, 2016 CMD, NBCC administers NTPC observes Vigilance Vigilance pledge to officers Awareness Week Dr. Anoop Kumar Mittal, CMD, Mr. S. K. Pal, NTPC observed Vigilance Awareness Week in all Director (Finance) and Mr. Sanjiv Swaroop, CVO, its projects , stations and offices recently. Different accompanied by Mr. Rajendra Chaudhari, Director programmes were organized by NTPC for creat- (Commercial), administered Vigilance and Integrity ing awareness among the general masses, youth, Pledge to Officers and Staff members of NBCC Corporate Office recently to mark the beginning of

Vigilance Integrity Pledge being administered by Mr. Gurdeep Singh, CMD, NTPC. Dr. Anoop Kumar Mittal, CMD administering the pledge at NBCC. employees and their family members highlight- Observance of Vigilance Awareness Week by the ing evils of corruption and its impact on society. company. The week-long programme at NBCC, was Vigilance Integrity Pledge was administered by organized by its Vigilance Division and witnessed Mr. Gurdeep Singh, CMD from Corporate Office several activities including Interactive Sessions, Delhi to employees at all projects and offices of Debates, Essay Competition, Talk on Stress man- NTPC through Video Conferencing. agement & ethics, etc. Vigilance Awareness NFL observes Vigilance Week-2016 observed at OIL’s Awareness Week Corporate Office The observance of Vigilance Awareness Week- 2016, on the theme, “Public participation in

Mr. Manoj Mishra, CMD, National Fertilizers Limited InTouch the in-house Vigilance journal, being released on the administering ‘Vigilance Pledge’ to employees in Corporate occasion of the inauguration of Vigilance Awareness Week- Office, Noida during Vigilance Awareness Week. 2016 at OIL.

KaleidoKaleidoscope November, 2016 105 promoting Integrity and eradicating Corruption”, at College, Surathkal, NGOs, charity institutions and Oil India Limited’s (OIL) Corporate Office citizens participated in association with MRPL. in Noida, with the pledge taking by all em- ployees. The pledge was administered by Mr. Oil India observes Rashtriya Utpal Bora, CMD, OIL. Befitting the occa- Ekta Divas to mark the sion, a special issue of ‘InTouch’, the in-house journal of Vigilance Department was also released Birth Anniversary of Sardar by the CMD. Vallbhbhai Patel Oil India Limited (OIL) celebrated the Rashtriya MRPL sets up kiosk at MCC for Ekta Divas to mark the Birth Anniversary of Sardar Vallabhbhai Patel in its offices across the country Integrity pledge and organizes recently. walkathon at Surathkal As a part of the Vigilance Awareness week, Mangalore Refinery and Petrochemicals Limited (MRPL) has set up a kiosk at Mangalore City Corporation to enable the general public to take E-Integrity pledge by visiting the website of Central Vigilance Commission, ie., www.cvc.nic.in. The kiosk was inaugurated by Mr. Harinath, Mayor of Mangalore, who also took the E-Integrity pledge on the occasion. Speaking later he complimented MRPL for setting up the kiosk at MCC to enable

Oil India Limited’s contingent participated in the “Run for Unity”, which was flagged off by the Prime Minister from the National Stadium in Delhi, on the occasion of Rashtriya Ekta Divas.

The Pledge on the occasion of the RashtriyaEkta Divas was administered to a gathering of employ- ees of the company in its Corporate Office by Mr. Biswajit Roy, Director (HR&BD), OIL. The Pledge was also undertaken by the Company’s employees Mr. Harinath, Mayor of Mangalore, Inaugurating the in its other offices in the country as well.A contin- KIOSK at MRPL. gent of OIL’s employees also participated in the “Run for Unity”, which was flagged off by the the citizens to take the pledge and spreading the Prime Minister from the National Stadium in Delhi, awareness among the general public about fighting on the occasion of Rashtriya Ekta Divas. corruption. Mr. Mohammad Nazir, Commissioner of Mangalore City Corporation, Mr. Gokuladas Vigilance Awareness Nayak, Dy. Commissioner, Mr. H Kumar, Managing Director, MRPL, Mr. Y Ravindranath, CVO, MRPL Week 2016 in REC and other dignitaries were present on the occa- Vigilance Awareness Week 2016 commenced in sion. Citizens were seen enthusiastically taking Rural Electrification Corporation Ltd. (REC) with the pledge by visiting the CVC website after the taking Pledge by all Senior Officials and employ- program. ees. One day workshop on Principles of public A walkathon was arranged in the afternoon in life, Integrity and Preventive Vigilance was or- Surathkal, in which students of Govindadasa PU ganized for its employees. REC also organized

106 KaleidOKaleidOscope November, 2016 CMD, CVO, Directors, eminent jury members, of- ficers of CONCOR, representatives of media & edu- cation fraternity were present at the event. Six col- leges of University of Delhi viz. Shri Ram College of Commerce, Shri Aurobindo College, Ram Lal Anand College, Atma Ram Sanatan Dharm College, St Stephens College and Hindu College participat- ed in the said event.

Officials at REC taking pledge during Vigilance Awareness Week. debate/elocution/poem competitions in schools and colleges in New Delhi during this week to cre- ate awareness regarding importance of ethics and transparency.

CONCOR organizes skit Skit Competition organised by CONCOR. to observe Vigilance The Jury comprised of Mr. Robin Hibu, IPS Awareness Week (Jt Comm. of Police, Delhi Police), Mr. Alok Shukla Container Corporation of India Limited organized (theater actor, writer, director & journalist) and an Inter College Skit Competition at Shri Ram Ms. Ratna Bali Kant (sculptor and performance art- College of Commerce, University of Delhi recently ist). Hindu College won the 1st prize, Atma Ram to mark Vigilance Awareness Week 2016. The topic Sanatn Dharm College 2nd prize and Ram Lal of the skit : “Collective Action to Fight Corruption”. Anand College 3rd prize.

KaleidoKaleidoscope November, 2016 107 Oil India led Indian consortium SAIL posts 20 percent sales Successfully completes growth during two Landmark Acquisitions in Russia Apr-Oct’16 period

teel Authority of India Ltd. (SAIL) witnessed a robust Sgrowth in total sales during the April-October’16 period of 20 percent over the corresponding period last year (CPLY). During this period the domestic sales went up by 15 percent with im- provement in both long and flat products. Also, exports volumes rose by more than three times in the Apr-Oct’16 period over Apr- The consortium of OIL, IOCL and Bharat PetroResources officials and Rosneft Oct’15 backed by a conscious officials during the signing ceremony. strategy of the company to ex- pand its footprints in the neigh- he Indian consortium one of the largest green field de- boring markets. led by Oil India Limited velopments in Eastern Siberia On the production front, the Apr- T(OIL), including Indian Oil Region. Post this transaction, Oct’16 period clocked better per- Corporation Limited (IOCL) and Rosneft now holds 50.1percent formance with 22 percent growth Bharat PetroResources Limited stake in the field. BP is the other in saleable steel production com- (BPRL), a 100 percent subsidiary partner with 20percent stake. pared to the corresponding period of Bharat Petroleum Corporation Vankor is a producing giant last year. The Techno-economic parameters also registered an up- Limited (BPCL), have successful- oilfield, also located in Eastern tick over Apr-October’15 period ly completed two landmark ac- Siberia. It is the second larg- with 7 percent improvement in BF quisitions of producing upstream est field in Russia by produc- assets in Russia.The consortium (blast furnace) productivity and tion and contributes to about 3 percent improvement in Coke acquired 29.9 percent stake in LLC 10percent of Rosneft’s entire rate. Chairman, SAIL, Mr. P.K. Taas-YuryakhNeftegazodobycha oil production. Post this trans- Singh said that, “The manage- (TaasYuryakh) and 23.9 per- action Rosneft now holds 61.1 ment’s sustained emphasis to im- cent stake in JSC Vankorneft percent in the field. ONGC prove every process from produc- (Vankorneft) from Rosneft Oil Videsh Limited currently tion up to reaching the consumers Company, the National Oil holds 15 percent stake. The are beginning to show results. Company of Russia (Rosneft). current combined produc- The stabilization of new mills un- The transactions received ap- tion from both fields is around der modernization programme provals from relevant govern- 440,000 bopd or ~22 MMTPA have also contributed to the im- ment authorities of India and and OIL’s share of current proved volumes and sales. All this would strengthen company’s Russia in late September and oil production is 1.7 MMTPA. performance at a time when there completed simultaneously on 5th The fields are also produc- is a pick-up in activities of steel October 2016 in Moscow, Russia. ing about 5.6 BCM of sales gas intensive sectors. Also the posi- The definitive agreements for the per annum. The remaining tive environment brought in by Taas Yuryakh and Vankorneft oil and gas reserve of the two Government of India, including deals were signed in March 2016 fields together are approxi- its competitive trade policies and and June 2016 respectively. Taas mately 3.86 billion barrel oil measures, have helped improve Yurakh is a producing asset and equivalent. the market sentiments.”

108 KaleidOKaleidOscope November, 2016 IndianOil proudly serves Sakshi Malik, Olympic Bronze Medalist, at Rohtak

ndianOil proudly served Rio Olympic Bronze Medallist IMs. Sakshi Malik as her ‘pre- ferred oil retailer’ when recently she drove into M/s Rathi Brothers at Rohtak on request of IndianOil Dealers’ Association of Rohtak District for a quick refill. Mr. Rakesh Kumar, SDRSM, Hissar DO, welcomed Ms. Sakshi Malik with a flower bouquet. With the objective of customer acquisition and getting feed- Ms. Sakshi Malik, being felicitated by IndianOil offcials. backs from esteemed customers, Ms. Sakshi Malik gave her rat- fall in international prices in cur- ing on service standards of the profit of Rs. 11,391 cr. in H1, 2016-17 rent period. IndianOil’s income RO in X-Sparsh through tablet from operations was Rs. 1,00,274 kept at the RO and displayed in IndianOil posted a net profit of cr. in Q2 16-17 as compared to LED screen. Hissar DO Officials Rs. 11,391 cr. for the half year end- ed 30th September 2016 as com- Rs. 97,299 cr. in the correspond- apprised Ms. Sakshi Malik re- pared to net profit of Rs. 6,141 cr. ing quarter of 2015-16. Profit for garding the recently launched during the corresponding period the second quarter of 2016-17 is at XtraMile in Rohtak City. Mr. Rajib of the previous year. The income Rs. 3,122 cr. as compared to loss Karmakar, Mgr (RS), Hissar DO, from operations for the first half of Rs. 450 cr. in the correspond- and Mr. Naveen Kumar, Dy. Mgr of FY 2016-17 was Rs. 2,07,475 cr. ing quarter of 2015-16 mainly due (RS), Rohtak SA, were also pres- as compared to Rs. 2,11,043 cr. in to improved refining and petro- ent on the occasion. corresponding period of FY 2015- chemical margins. 16 and despite better physicals, IndianOil reports net the decrease is purely because of For the second quarter of 2016- 17, IndianOil’s product sales volumes, including exports, was 19.698 million tonnes. The refin- ing throughput was 15.635 mil- lion tonnes in Q2 FY 16-17 and the throughput of the Corporation’s countrywide pipelines network was 20.974 million tonnes during the same period. The gross refin- ing margin (GRM) for the sec- ond quarter of 2016-17 was US$ 4.32 per bbl as compared to US$ Mr. B. Ashok, Chairman, IndianOil along with functional directors at IndianOil’s 0.90 per bbl in the corresponding Press Conference for declaring Q2 financial results for FY 2016-17 quarter of 2015-16.

Kaleidoscope November, 2016 109 Secretary, Ministry of Minister of State (IC) for Power, Tourism inaugurates Coal, New & Renewable Energy ITDC’s 50 and Mines, visits NLCI golden year’s celebration

Mr. Piyush Goyal, Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, Government of India after unveiling the plaque for the in- auguration of Eco Park at Mine II of Neyveli. Also seen are Dr. Sarat Kumar Acharya, CMD, Functional Directors and senior officials of NLCI.

Mr. Vinod Zutshi, Secretary, Ministry r. Piyush Goyal, Mini- Annamalai University, NLC of Tourism with others at the 50 years ster of State (IC) for India entered an MOU with celebrations of ITDC. MPower, Coal, New & Annamalai University, Chidam- Renewable Energy and Mines, baram for starting NLCI-AU ndia Tourism Development Government of India visited Skill Development Center and Corporation organized a Neyveli recently. The Minister as a first step to start a Diploma function recently to mark the I was accompanied by Dr. Sarat Course from this academic completion of successful 50 years Kumar Acharya, CMD and year in Mining to realize the of ITDC in the field of hospitality Directors of NLC India Ltd. and tourism at the Convention National Skill Development Hall of The Ashok, A flagship As part of his visit, the Minister Mission of Government of property of ITDC. visited Mine-I, and observed India. Mr. S. Sridhar, Executive the mining operations. While Director,CSR of NLC India and Mr. Vinod Zutshi, Secretary, visiting the Township view Ministry of Tourism graced the Dr. K. Arumugam, Registrar, point at the high dump area occasion as the Guest of Honor. Annamalai University signed of Mine-I. He inaugurated Present among other dignitaries and exchanged MoU. the newly developed Eco were Mr. Umang Narula, CMD, Park located over 12 acres Mr. Rakesh Kumar, Director/ ITDC; Mr. Piyush Tiwari, Director Finance, Mr. Subir Das, Director/ (Commercial and Marketing), and planted a sapling in the Mines, Mr. V. Thangapandian, ITDC; Mr. Pradip K Das, Director afforestation area of Mine-II Director/Power, Executive Direc- (Finance), ITDC along with Ex and concluded his Industrial CMDs of the organization, ITDC visit at TPS-I Expansion. In a tors, officers and employees of staff and other respected guests. meeting organized at Lignite NLC India Limited participated Mr. Ashwani Lohani, CMD, Hall, Minister addressed the in this event. Earlier he flagged of Air India & Ex CMD ITDC also employees of NLC India. the Swachh Bharat awareness ral- graced the occasion. Making this In the presence of Minister and ly organized by Neyveli School occasion more significant, ITDC Dr. S. Manian, Vice-Chancellor, Children numbering 1200. Contd ... to # 114

110 KaleidOKaleidOscope November, 2016 CPCL’s 50th AGM held he 50th Annual General Meeting (AGM) of Chen- Tnai Petroleum Corpn. Ltd. (CPCL) was held in Chennai re- cently. Mr. B. Ashok, Chairman, IndianOil Group Companies, Mr. Gautam Roy, Managing Director, CPCL, S. Venkatara- mana, Director (Operations), Mr. U. Venkataramana, Diector (Technical), Mr.Krishna Prasad, Director (Finance), Directors on Mr. B. Ashok, Chairman, IndianOil Group Companies, Mr. Gautam Roy, MD, CPCL and other senior officials during 50th AGM of CPCL. the Board of CPCL, Mr. Alirea Zamani, Naftiran Intertrade the year, after four years of con- and product prices in the interna- Co Ltd, Tehran Iran, Mr. G. secutive losses, by registering a tional market also led to reduced Ramasamy, Independent Di- Profit Before Tax of Rs. 787.45 working capital requirement rector, Mr. K. M. Mahesh, cr. The Chairman attributed the and management of this along Director (MoP&NG), Mr. Raju turnaround mainly to improve- with borrowings in a judicious Ranganathan, ED (CS & Law), ment in operational performance manner also contributed to a representing IOCL and Mr. P. and excellent financial perfor- healthy bottom line,” he further Shankar, Company Secretary, mance, support from the Holding added. were present. Company Indian Oil Corporation CPCL Board announced a divi- Addressing the shareholders, Ltd., softening of prices and dend of 40 percent on the paid-up the Chairman said CPCL made good margins across the slate of equity share capital, amounting a remarkable turnaround during products. “Softening of crude to Rs. 4 per equity share.

GSL’s MCG Victory embarks on its maiden voyage CG Victory, the first Fast Patrol Vessel (FPV) designed and constructed by GSL for Mauritius, embarked on its maiden voyage to Mauritius recently at GSL, Mcatapulting GSL to the elite league of select few Defence vessel Exporter from the country. The ship was ceremonially seen off by RAdm. Shekhar Mital, NM (Retd), CMD, Goa Shipyard Ltd who facilitated Lt. Cdr Y. Pramod, CO, CGS Victory and the entire crew members on the occasion. Mr. S. P. Raikar, Director (Operations), GSL, Cmde. B.B. Nagpal, Director (CPP&BD) besides other dignitaries were present on the occasion. RAdm Shekhar Mital said, “Contract of the vessel was signed and the keel of this vessel was laid in May 2014. The vessel was launched on 29th February 2016 by Ms. Smita Parsekar, wife of Chief minister of Goa. Despite all the challenges, including delay of over six months in supply of steel and being the first ship of the series, GCL successfully delivered this ship on 26 Sept 2016, 45 days ahead of contractual schedule. Further, one month was utilized by crew for its training and work up by Navy. CMD thanked Government of Mauritius, Ministry of Defence, RAdm. Shekhar Mital, NM (Retd), CMD, GSL State Government and local authorities for providing all the necessary assistance, facilitating Lt. Cdr Y. Pramod, CO, CGS. which has enabled GSL to achieve new milestones in the performance.

Kaleidoscope November, 2016 111 Prime Minister Dedicates 1732 MW -Three Hydro Projects in Himachal

rime Minister, Mr. Naren- dra Modi appreciated the Pcontribution of Public sector companies and said these hydro projects will bring prosper- ity to the State of Himachal and other parts of the country while dedicating the flagship 800 MW Hydro Power Station of NTPC- Koldam, 520 MW Parvati Project of NHPC and 412 MW Rampur Hydro Station of SJVNL to the Nation in Himachal Pradesh Prime Minister, Mr. Narendra Modi, inaugurating Hydro Power Projects. recently. , Gover- nor of Himachal Pradesh, Mr. Vir New & Renewable Energy and Project through the model dis- Bhadra Singh, Chief Minister, Mines and eminent dignitaries played at the venue to the Himachal Pradesh, Mr. Jagat from Himachal Pradesh were Prime Minister. Mr. S.C Pandey, Prakash Nadda, Union Minister present on the occasion. Mr. Director (Projects), Mr. K. K. of Health and Family Welfare; Gurdeep Singh, CMD, NTPC Sharma Director (Operations) Mr. Piyush Goyal, Union Minister shared the salient features NTPC and Mr. K. K. Singh, RED of State ( I/C )for Power, Coal, and highlights of the Koldam (Hydro Region)were present.

Vizag Steel signs PV Sindhu as Brand Ambassador

ashtriya Ispat Nigam Limited, the corporate entity of Vizag Steel has roped in top ranked RIndian Badminton Player PV Sindhu as its brand ambassador. The deal facilitated by Baseline a sports marketing and a brand licensing firm will see Vizag Steel become the major partner of the athlete and will also have the brand logo on the top chest of Sindhu’s playing jersey in international and domes- tic tournaments under the aegis of Badminton World Federation Events (BWF) and Badminton Association of India sanctioned events respectively. The event was held at a function in Hyderabad recently. Mr. P Madhusudan, CMD, RINL and PV Sindhu after signing up as “Brand Ambassador of Vizag Steel”. Mr. P Raychaudhury, Sindhu, currently amongst the top 10 ranked play- Director (Commercial) RINL is seen (left to RINL CMD). ers in the world is the first Indian female athlete to Contd ... # 113

112 KaleidOKaleidOscope November, 2016 Minister of Civil Aviation inaugurates AAI’s booth in the ICAO World Aviation Forum at Montreal, Canada

irports Authority of India recently partici- Apated in the ICAO World Aviation Forum & 39th ICAO Triennial General Assembly which was attended by dele- gates from 191 countries. Indian Delegation led by Minister of Civil Aviation Mr. Ashok Gajapathi Raju participated in the event. Minister also inaugurat- ed Airports Authority of India’s booth in the presence of Mr. Alok Shekhar, Representative of Minister of Civil Aviation, Mr. Ashok Gajapathi Raju inaugurated the Airports India in Governing Council Authority of India’s booth in the presence of Mr. Alok Shekhar, Representative of ICAO, Mr. Anuj Aggrawal, of India in Governing Council of ICAO, Mr. Anuj Aggrawal, Member HR, AAI and Member HR, AAI and other se- other senior officers and delegates from India, during the IWAF & 39th ICAO nior officers and delegates from General Assembly held in Montreal, Canada. India, during the IWAF & 39th ICAO General Assembly held in e-business solution for data addressing the august gathering Montreal, Canada. gathering, invoicing and col- at ICAO museum at ICAO Hqrs Speaking on the occasion lection under one of the ICAO in Montreal, Canada lauded the the Minister lauded Airports missions ‘’No Country Left role of AAI for imparting training Authority of India for show- Behind’’. AAI also participat- to its senior level officers on the casing its expertise in the ed in World Triennial General prestigious Airport Management field of Airports Consultancy, Assembly of Airports Council Professional Accredited Program Development, Operation & International (ACI) event which (AMPAP) which is a strategic Management of Airports, Flight was also held during the same initiative of ACI and ICAO. The Calibration Services, NOCAS, period. More than 2000 Airport Secretary General, ICAO congrat- GAGAN, Consultancy in ATFM & Industry decision makers partici- ulated AAI for having maximum flight procedure design and also pated in the event. Dr. Fang Liu, numbers of International Airport SKYREV360- a comprehensive Secretary General, ICAO while Professionals (IAP).

Contd ... from # 112 Mr. P Madhusudan, CMD, RINL them famous far and wide and do win the Olympic silver medal said, “In PV Sindhu, we see our the country proud. We are sure at the Rio Olympics and she is unique value system: IDEALS that the ‘Vizag Steel- Sindhu’ as- also the first athlete to win back- (Initiative, Decisiveness, Ethics, sociation will be a fruitful one and to-back medals at the World Accountability, Leadership and will go a long way in imprinting Badminton Championships. The Speed)- everything that our prod- in the minds of the people the at- endorsement is the first of many ucts convey. Both, Sindhu and tributes of toughness, resilience, for PV Sindhu post her Olympic Vizag Steel, are priceless assets endurance and quality that sym- exploits. of India and this bond will make bolise our traits.”

Kaleidoscope November, 2016 113 GAIL places order for 345 km Pipeline Laying Contract for Jagadishpur Haldia Bokaro Dhamra Pipeline

AIL has initiated a ma- capital Grant for a Natural Gas The first phase at a project cost of jor step towards the pipeline project. Rs 3,200 cr. will cover 755 km to Gconstruction of the On the development, Mr. cover Phulpur, Mani, Gorakhpur, Jagadishpur - Haldia - Bokaro- Dharmendra Pradhan, Minister Varanasi, Dobhi, Silao, Patna and Dhamra Natural Gas Pipeline for Petroleum & Natural Gas Barauni spread across various (JHBDPL), by approving place- said- “Our Prime Minister has sections. Pipeline construction ment of orders for pipeline laying taken a clear and committed is already under progress along work of 345 km from Phulpur to Gaya-Barauni–Patna section. Dobhi under phase-IB at an esti- stand to move towards a cleaner mated cost of Rs.306 cr. under two fuel regime. It is a delightful mo- The 2,539 km long JHBDPL is sections to be executed simulta- ment for us as cleaner and greener scheduled for completion by neously by JSIW Infrastructure energy path has been chosen for December 2020 and will con- Pvt. Ltd. and IL&FS Engineering Eastern India that shall be afford- nect major cities and towns & Construction Co. Ltd.. Laying ably accessible to the masses.” enroute for commencing piped works under phase-IB shall com- Post approval of the pipeline natural gas to homes across UP, mence by the end of October, 2016 laying award contract under Bihar, Jharkhand, West Bengal and targeted to be completed by phase-I B, Mr. B C Tripathi said and Odisha in addition to sup- December, 2018. – “Pipeline and city gas projects plying feed gas to anchor fertil- Cabinet Committee on Economic under JHBDPL in Eastern India izer units at Gorakhpur, Barauni Affairs approved Capital Grant are a big step towards accom- and Sindri. The Line Pipes sup- of 40 percent, amounting to Rs. plishment of National develop- plies against orders are expected 5,176 Cr. over 5 years, for the ment goals based on natural gas to commence soon from M/s pipeline project, to be imple- and the Company shall expedi- Jindal Saw Limited, M/s MAN mented by GAIL at an estimated tiously work to execute the en- Industries (India) Limited, M/s capital outlay of Rs. 12,940 Cr. It trusted projects in tune with the Essar Steel India Limited and M/s is the first time ever that Central Government’s objectives as per Zhongyou BSS (Qinhuangdao) Government has approved schedule.” Petro pipe Co. Ltd, China.

Contd ... from # 110 announced free sound and light ITDC for completing 50 years of being a diversified self-rejuvenat- shows for the Indian Armed unparalleled and diversified ser- ing organization, attaining insti- forces and their immediate fam- vices to the Nation in travel, tour- tutional excellence and becoming ily members at Purana Quila and ism and hospitality sector. While a renewable goldmine of tourism Red Ford. The free service for the addressing a large conglomera- and hospitality.” armed forces will be available till tion of directors, government of- “Ability Unlimited” an organiza- March 2017. ficials and ITDC employees at tion made for the benefit of dif- Congratulating ITDC, in his this occasion, Mr. Vinod Zutshi, ferently abled people performed message Dr. Mahesh Sharma, Secretary, Ministry of Tourism some beautifully choreographed Minister of State (Independent said, “We have been knowing and extraordinary performances Charge) Tourism & Culture, said, Ashok as the brand ICON of at the golden jubilee celebration “Heartiest congratulations to India, I congratulate ITDC for of ITDC.

114 KaleidOscope November, 2016