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Annual Report 2019-20

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Annual Report 2019-20 Annual Report 2019-20 ANNUAL REPORT 2019-20 Ministry of Steel Government of India Annual Report 2019-20 Annual Report 2019-20 S.No Chapter Page No. I. Highlights 4 II. Organisational Structure and Functions of Ministry of Steel 20 III. Steel Policies and their Impact 24 IV. The Indian Steel Sector: Progress and Potential 27 V. Public Sector 34 VI. Private Sector 48 VII. Technical Institutes under Ministry of Steel 53 VIII. Research and Development 56 IX. Steel and Its Uses- Arenas and New Products 71 X. Promotion of Steel Usage 75 XI. Energy, Environment Management and Climate Change 81 XII. Development of North Eastern Region 102 XIII. International Cooperation 104 XIV. Development of Information Technology 105 XV. Safety 113 XVI. Welfare of Weaker Sections of Society 122 XVII. Vigilance 127 XVIII. Grievance Redressal Mechanism 138 XIX. Divyang and Steel 144 XX. Progressive Use of Hindi 147 XXI. Empowerment of Women 155 XXII. Corporate Social Responsibility 159 XXIII. Implementation of RTI Act, 2005 177 XXIV. Skill Development 181 ANNEXURES 183 Annual Report 2019-20 CHAPTER-I HIGHLIGHTS 1.1 TRENDS AND DEVELOPMENTS IN STEEL SECTOR • India is currently the world’s 2nd largest producer of crude steel in January-December, 2019, producing 111.245 Million Tonnes (MT) (provisional) crude steel with growth rate 1.8% over the corresponding period last year (CPLY). • India is the largest producer of Direct Reduced Iron (DRI) or Sponge Iron in the world in January- December 2019, producing 36.86 Million Tonnes Sponge Iron with growth rate 7.7% over the corresponding period last year (CPLY). • The country is also likely to become the 2nd largest consumer of finished steel in 2019, preceded by China as the largest steel consumer (2019: 900 mt) as per the Short-Range Outlook, October, 2019 edition of World Steel Association. • Capacity for domestic crude steel production expanded from 109.85 Million Tonnes Per Annum (MTPA) in 2014-15 to 142.24 MTPA in 2018-19, a Compounded Annual Growth Rate (CAGR) of 6.8% during this five-year period. • Crude steel production grew at 7.6% annually (CAGR) from 88.98 MTPA in 2014-15 to 110.92 MTPA in 2018-19. • During April – December, 2019 (provisional; source: JPC), the following is the industry scenario as compared to same period of last year: a. Production of crude steel was at 82.192 Million Tonnes, up by 0.4%. SAIL, RINL, TSL, Essar, JSWL & JSPL together produced 46.752 Million Tonnes with a share of 57% and down by 0.4%. The rest 35.44 Million Tonnes came from the Other Producers, up by 1.5%. b. With an 81% share, the Private Sector, producing 66.85 Million Tonnes, (up by 1.2%) led crude steel production compared to the 19% contribution of the PSUs. c. Pig iron production was 4.314 Million Tonnes, down by 14.3%. The Private Sector accounted for 88% of the same, the rest 12% being the share of the Public Sector. d. In case of total finished steel (non-alloy + alloy/stainless): • Production stood at 76.33 Million Tonnes, a growth of 1.8%. • Exports stood at 6.52 Million Tonnes, up by 39.4%. • Imports stood at 5.51 Million Tonnes, down by 6.7%. • India was a net exporter of total finished steel. • Consumption stood at 75.05 Million Tonnes, a growth of 3.8%. -4- Annual Report 2019-20 • Data on production,conumption, import and export of total finished steel (alloy + nonalloy) and production of crude steel from 2014-15 to April – December, 2019 (provisional) are shown in the table below: Table 1.1: Production of Finished Steel (alloy/stainless + non-alloy) and crude steel (in Million Tonnes) Item 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20* Finished Steel Production 104.578 106.602 120.140 126.855 101.287# 76.326# (1.8) Imports 9.320 11.712 7.226 7.482 7.834 5.51 (-6.7) Export 5.596 4.079 8.242 9.620 6.361 6.52 (39.4) Apparent Steel Use 76.994 81.525 84.042 90.708 90.708 75.05 (3.8) Crude Steel Production 88.979 89.790 97.936 103.131 110.921 82.192 (04) Source: JPC; Figures in bracket () indicate % change over same period of last year * Provisional; for April- December, 2019 # Crude steel equivalent 1.2 Major Initiatives taken/achievements of the Ministry of Steel during the year The Government’s vision to achieve a $5 trillion economy by 2024 entails investments in several steel intensive sectors like infrastructure, housing for all, 100% electrification, piped water for all, etc. The growth potential for the sector is thus immense and the domestic steel consumption will increase significantly in line with this vision. It is, therefore, important to ensure that this demand is served through a robust domestic steel industry. The Ministry of Steel alongside the CPSEs have, therefore, undertaken several initiatives to create a globally competitive steel sector. 1.2.1 Chintan Shivir – Collaborative platform to identify key thrust areas for the industry The Indian steel sector is a diverse and vibrant ecosystem comprising of a multitude of stakeholders across the value chain. Each stakeholder brings valuable inputs to the sector based on their rich experience. In order to leverage these experiences and ensure efficient operationalization of the envisioned initiatives, the Ministry regularly facilitates interaction with the various stakeholders. Along these lines, the Chintan Shivir was organized on 23rd September 2019, as a collaborative platform to bring together all stakeholders of the Indian steel industry to address challenges, identify opportunities and arrive at tangible outcomes to steer the Indian steel industry on the path of sustainable growth. Over 900 stakeholders were part of this event. Over the course of the deliberations, 32 major challenges were identified. Additionally, 40 major suggestions were captured and 17 initiatives of the Ministry of Steel were discussed by the gathered participants. -5- Annual Report 2019-20 Shri Dharmendra Pradhan, Hon’ble Union Minister of Steel giving inaugural speech during the ‘Chintan Shivir’ at Manekshaw Centre, Delhi Cantonment, New Delhi. 1.2.2 Make in Steel – Accelerating demand for steel: Committee of Secretaries note on increasing steel usage in construction and infrastructure India’s annual per capital steel consumption is 74 kg and is one-third the global average (224.5kg). India currently utilizes less steel intensive construction methodologies for buildings, roads and bridges and hence does not fully utilize the numerous benefits of steel intensive construction. A transition to steel intensive construction will also support India’s rise to a $5 trillion economy by 2024-25. The Ministry of Steel held 50+ consultations with government agencies and private players to identify the various advantages of steel intensive construction and the measures required to bring about the transition. -6- Annual Report 2019-20 Steel intensive construction is prevalent across the globe and an increase in steel use is strongly correlated with an economy’s GDP growth, especially during the nation building phase. Steel’s advantages over conventional construction methodologies such as lower life cycle cost, more durable and safer buildings, roads and bridges, reduced construction time, enhanced environmental sustainability and reduced air pollution without a significant rise in upfront cost ensures that economic development happens at a fast and environmentally sustainable pace. Furthermore, steel is a permanent material contributing to the circular economy due to its recyclable and reusable nature along with its reduced energy consumptions during the manufacturing phase and lower embodied carbon. Ministry of Steel has prepared a Committee of Secretaries (CoS) note seeking approvals on various measures required to increase steel usage in the construction and infrastructure sectors in India and ensure that the Indian economy grows at a quick and environmentally sustainable pace. Enabling a transition to steel intensive construction requires a change in the General Financial Rules (GFR) mandating life cycle cost analysis for government projects during the design phase, and increasing steel intensive construction’s coverage and depth in Bureau of Indian Standards (BIS) life cycle and building design codes. Furthermore, modifications in Ministry of Road Transport and Highways (MoRTH) guidelines to mandate life cycle cost analysis for roads and bridges and inclusion of pre-approved steel intensive bridge designs will also promote steel intensive roads and bridges. Inclusion of steel intensive construction and work rates in CPWD Plinth Area Rate (PAR) and Delhi Schedule of Rates (DSR) will enable faster approvals for steel intensive construction due to easier cost estimates of projects. Ensuring implementation of IRC guidelines for crash barrier installation and regular checks will reduce fatal vehicle accidents. 1.2.3 Make in India: Boost domestic manufacturing through the Domestically Manufactured Iron & Steel Products Policy (DMI& SP) Ministry of Steel has recently amended the Domestically Manufactured Iron & Steel Products Policy (DMI& SP) in order to increase domestic sourcing of iron & steel products by Central Government agencies. Through this DMI & SP policy, Steel imports worth more than Rs. 15,000 cr. have so far been avoided. -7- Annual Report 2019-20 1.2.4 Ispati Irada – To encourage steel usage Ministry of Steel has launched a collaborative branding campaign with the objective of promoting the benefits of steel usage in various facets of nation building and how it impacts the lives of citizens in the country. The brand elements for this campaign may be leveraged by various organizations like State Governments, State PSUs, private companies, non-profit organizations basis certain pre-defined guidelines being defined by the Ministry of Steel. 1.2.5 Capacity Creation As demand increases, ensuring a self-sufficient steel ecosystem will necessitate further steel capacity addition and value addition in the country.
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