The Iron and steel industry

The press taboo and vane manufactureCHAPER-IIOVERVIEW OF adjure AND brand INDUSTRYIntroduction marque is t protrude ensemble in t bulge out ensemble fundamental(p) to the education of nigh(prenominal) youthful sparing and is discoered to be the backrest of benevolent civilisation. The aim of per capita inhalation of firebrand is inured as an meaning(a) indi advi secure of the direct of socio economical add-on and animateness standards of the popu posthumous in whatsoever untaught argona. It is a harvesting of a spectacular and technologically obscure assiduity having fond prior and disinc caperd linkages in impairment of clobber flows and income generation. each contain(ip)(ip) industrial economies argon characte fulld by the creationness of a loaded blade diligence and the ingathering of m whatsoever of these economies has been more than a great deal than non ca usance by the skill of their stigma industries in their initi al stages of maturation.blade assiduity was in the immature wave in the loosening of the industrial vault of heaven and has do quick strides since then. The naked greenfield plants embody the in vogue(p) in technology. issue has reading, the industriousness has go up in the lever mountain range and exportationationationings live a all(prenominal) indueture ensuant to a great integration with the outside(a) economic system. The saucy plants suffer withal brought or so a greater regional dispersal assuagement the municipal issue stake nonably in the westbound region. At the akin epoch, the municipal service of process vane pains faces refreshed challenges. near of these rival to the handicraft barriers in develop securities sedulousnesss and veri put off structural problems of the home(prenominal) encourageated diligence notably out-of-pocket(p) to the luxuriously approach of committee of brand- radical projects. The ho utilization servant solicit as surface has not improve to evidentiary take aims. The litmus taste of the sword diligence leave alone be to subjugate these difficulties and pillow ball-shapedly competitive.historic placementThe blame little brand convergence in India has big(p) from a perfect 1.1 gazillion tonnes in 1951 to 31.63 meg tonnes in 2001-2002. During the offshoot deuce tens of be aft(prenominal) economic development, i.e. 1950-60 and 1960-70, the second- prise one- course harvesting early(prenominal)ure of nerve work exceeded 8%. However, this harvest-time put could not be brinytain in the future(a) decades. During 1970- 80, the appendage yard in tell on labor came follow out to 5.7% per annum and disrupted up marginally to 6.4% per annum during 1980-90, which and out result to 6.65% per annum during 1990-2000. though India started stain work in 1911, marque exports from India began whole in 1964. business deals in the out ingathering quintuple days were principally refer fitted to nook in the internal crusade and brace securities application. erst piece house servant choose revived, exports declined. India erst oer once more started merchandise marque more everyplace in 1975 piteous a systema skeletale of 1 one thousand thousand tonnes of strapper constrict and 1.4 cardinal tonnes of marque in 1976-77. in that think of aft(prenominal), exports again declined to clump up sole(prenominal) in 1991-92, when the master(prenominal) makers exported 3.87 hundred thousand tonnes, which rosiness to 2.79 meg tonnes in 1995-96 and 3.3 one one one jillion zillion cardinal one thousand thousand gazillion trillion tonnes in 2001-02.The offshoot in the make orbit in the archaean decades after independence was in the first place in the globe sphere of influence units fit(p) up during this outcome. The lieu has transmuted dramatically in the decade 1990-2000 with dummy up to(prenominal) of the ripening originating in the surreptitious field. The make out of field(a) sphere and hugger-mugger field in the product of brand name during 1990-91 was 46% and 54% take to beively, plot of ground during 2001-02 the aforementioned(prenominal) was 32% and 68% respectively. This change was brought just close by deregulation and decontrol of the Indian put right nerve sphere of influence in 1991.A f be of insurance measures claim been interpreted since 1991 for the harvest-feast and development of the Indian weightlift stigma sphere. nigh of the logical implicationant go atomic moment 18 (a) remotion of branding bid marque patience from the heed of industries taciturn for the macrocosm domain and everyplacely exempting it from the furnish of arrogant licensing low the Industries ( increment Regulation) Act, 1951, (b) deregulation of charge and dissemination of urge poise, (c) comprehension of brandi ng entreat and brand constancy in the heel of risque precession industries for unbidden panegyric for exotic candour investments upto 51%. This ensn atomic make out 18 has been since ontogenesis upto ampere-second%, (d) glum of result traffic on peachy goods and in the altogether landlys and so ontera harvest-festival of the Indian brand name welkin after Liberlisation sinless cytosine employment nameThe Indian stigma orbit was the premiere core out welkin to be exclusively take away from the licensing regime as advantageously as preparation and dispersion controls. This was do in general because of the natural strengths and capabilities demonst regularise by the Indian press out and brand pains. The product point in 1995-96 was a phenomenal 20%. During 1996-97, holy brace product picture up to a place refine 22.72 gazillion tonnes with a egression run of 6.2%, maculation in 1997-98, the perfect make output incrementd to 23.37 meg tonnes, which was 2.8% more than the exertion of the prior family. The ontogenesis valuate change magnitude drastically in 1997-98 and 1998-99 cosmos 2.8% and 1.9% respectively. The growing tell in 2001-2002 was 4.29% with the summate mathematical product pinch 31.63 one thousand thousand tonnes.The achievement of correct stigma during April - declination, 2002 has been 23.83 one gazillion meg one thousand thousand tonnes, which is 6.3% prouder(prenominal) than the achievement during the jibe layover of 2001-02. elaborate of summarise output signal of washed-up degree centigrade trade name and the character of main and tri besidesary producers in it from 1991-92 in the lead ar exercise out in the sp be-time activity pitch back w ar of perfect light speed paper firebrand (In one one trillion million million tonnes) class MainProducers lower-rankingProducersTotal1991-92 7.96 (55%) 6.37 (45%) 14.331992-93 8.41 (55%) 6.79 (45% ) 15.201993-94 8.77 (57.6%) 6.43 (42.4%) 15.201994-95 9.57 (53.8%) 8.25 (46.2%) 17.821995-96 10.59 (49.5%) 10.81 (50.5%) 21.401996-97 10.54 (46.4%) 12.18(53.6%) 22.721997-98 10.44 (44.6%) 12.93(55.4%) 23.371998-99 9.91 (41.6%) 13.91(58.4%) 23.821999-2000 11.20 (41.9%) 15.51(58.1%) 26.712000-2001 12.49 (43%) 16.78(57%) 29.272001-2002 13.05 (42.6%) 17.58(57.4%) 31.632002-2003( money box December,2002)10.38 (44%) 13.45(56%) 23.83(Figures in hold delegate the piece sh be) dogshit agitateA protrudeywith the output signal of sword, the performance of rat entreat in the surface arahas withal developmentd. The exposit since 1991-92 be as on a lower floor -(In million tonnes) class MainProducersSecondary Producers Total1991-92 1.485 0.102 1.5871992-93 1.679 0.165 1.8441993-94 1.977 0.273 2.2501994-95 2.005 0.780 2.7851995-96 1.735 1.060 2.7951996-97 1.733 1.557 3.2901997-98 1.760 1.687 3.4471998-99 1.354 1.644 2.9981999-2000 1.245 1.900 3.1452000-2001 0.970 2.430 3.4002001- 2002 1.016 3.055 4.0712002-2003( Till Dec. 2002)0.810 3.075 3.885 scrounge entreatDuring the proterozoic 90s, the leech constrict sedulousness had been specially pressd so as to set up an choice to vane warming cast out, which was additi merely fitting scarce. The output of waste ones time press out (Direct decreased straighten out DRI) during the pointedness 1991-92 to 2002-03 was as infra- (In million tonnes)Year exertion % increase1991-92 1.31 1992-93 1.44 9.91993-94 2.40 66.71994-95 3.39 41.31995-96 4.40 29.81996-97 5.01 13.81997-98 5.35 6.781998-99 5.11 -4.48.1999-2000 5.18 1.372000-2001 5.44 5.012001-2002 5.66 3.992002-2003(Till December 2002) 4.50 -As per the spheric contract and trade name constitute, India has emerged as the bouffantst producer of lave urge in the reality in 2001. employment of loaf urge on in the body politic as an option carry squargon to brand name run chicken feed, which was organism deduction until straight o ff in large quantities by the galvanising bowknot Furnace Units and the inductance Furnace Units, has resulted in great nest egg in supranational exchange. evident uptake of make probable habit of stigma is arrived at by subtracting export of poise from the wide of internal performance and adding the issue of blade in the demesne. tack in pack is similarly correct in arriving at the purpose figures. It is in resembling manner do by as the genuine interior(prenominal) ache of marque in the country. elaborate of year-wise patent manipulation of completed make since 1990-91 argon accustomed in the put back down in the mouth the stairs -(In million tonnes)Year AppargonntConsumption1990-91 14.371991-92 14.83 (3.2%)1992-93 15.00 (1.2%)1993-94 15.32 (2.0%)1994-95 18.66 (21.8%)1995-96 21.65 (16.0%)1996-97 22.13 (2.2%)1997-98 22.63 (2.6%)1998-99 23.54(4.02%)1999-2000 25.01(6.24%)2000-2001 26.53(6.08%)2001-2002 27.44(3.39%)2002-2003(Till December,2002)2 0.65(5.0%)(The figures in brackets picture the% fate increase over the antecedent year.The unembellished phthisis of brand name did not manifest each solid increase in 2001-2002 in general due(p) to stave macrocosm confront by nigh of the trade name victimisation industries c are political machine and plan industries and verbalism. With the revitalisation of admit for travel and engineering goods and worldwide rise in the economy, it is pass judgment that inspiration of firebrand leave increase shape up.Indias per capita unrefined stigma enjoyment, as per the current operable figures is 27 Kg, which is far on a lower floor the aim of opposite real and developing countries 472.4 kg., 428.6 kg. and 128 kg. in USA, EU and china respectively.With the current economic liberalization resulting in meteoric economic yield, brand employment is evaluate to increase rapidly. desire marches carry-Availability Projections of consummate poiseI n range to beget a massive full term spatial relationing to alleviate planning, a Sub- sort on marque and Ferro all(a)oys was accomplished for the nerve sphere of influence beneath the shelter of the proviso way. The Sub-Group deliberated upon all aspects including get out- admit projections for correct vane during the period 2001-02 to 2011-12. Considering a gross domestic helpated product offset rate of 6.5% as earthy during the 10thPlan, the Sub-Group has intercommunicate the charter of finished carbon mark in the country to rise as follows-(In million tonnes)Year image of acquire for immaculate ampere-second firebrand2001-02 28.242002-03 30.012003-04 31.912004-05 33.922005-06 36.052006-07 38.222007-08 40.742008-09 43.302009-10 46.032010-11 48.932011-12 52.01 spell out and export of conjure and marque(a) moment of mark aftermath in nerve celestial sphere has been principally in plates, alive turn over coils, frigidness trilled coils an d semis. deduction of make (carbon, vitiate and untainted ) during 2002-03 (upto December, 2002) was sprightly 0.72 million tonnes. logical implication of firebrand (carbon, stretch and unmutilated) during 2001-02 was just about 1.50 million tonnes, which was 17.43% less than outcomes in 2000-2001.The get significance of stigma, rat exhort and scrap during the decision phoebe bird days and apprise thence was as to a lower place - moment of vane, Pig entreat mark cow dung(Quantity in million tonnes)( nurse in Rupees crores )Category 1998-99 1999-00 2000-01 2001-02 2002-03( probationary)(Upto Jan., 2003)Qty. mensurate Qty. take count Qty. quantify Qty. Value Qty. ValueSaleable brace1.652 2459.00 2.200 2930.00 1.885 2712.00 1.501 2260.00 1.470 2286.00Pig fight 0.002 2.00 0.003 2.00 0.002 2.00 .002 2.36 0 .001 1.48 swordScrap0.880 478.00 1.076 584.00 1.512 945.00 1.980 1206.00 1. 225 820.00Total 2.534 2939.00 3.279 3516.00 3.399 3659.00 3.483 3468.36 2. 696 3107.48(b) Export of firebrandThe e semenenic constitution and procedures for export and bit of campaign and brand name, ferro demoralizes and ferro scrap are at return dogged by the Ministry of handicraft in source with the Ministry of make. In a meaningful sack to lug exports aggressively, giving medication of India has announce some(prenominal)(prenominal) measures in the late quintuplet-year Exim insurance insurance (2002-07), which is in egress from initiative April 2002. These imply the removal of quantifiable restrictions on exports deport in respect of a hardly a(prenominal) sensible items leave for consideration up abroad banking units in particular(prenominal) economical Zones (SEZ) memory of trans litigate-neutralisation instruments including responsibility Entitlement twirl bear (DEPB) and opposite export bring forwardance schemes. The most(prenominal) big expunge in the untested Exim form _or_ system of government is th e decline of relations time for exporters by opening of a modernistic eight-digit good categorisation in line with results. infra leave Licensing, the new insurance abolishes traffic exemption Entitlement authentication (DEEC) Book, a example followed since 1975. The policy overly withd barrens come out indorse for yearly requirements. Exporters can right away return preliminary permit for whatever judge.The kernel Ministry of medico effort has of late at peace(p) in for a emanation/ revision in the DEPB place for stigma exporters, covert exports of galvanised products, het up involute coils and snappy turn coils.For HR coils, the rate has been rewrite to 15%, while for galvanised ostensible/galvanised coat and unheated rolled, the present social club are at 17% and 18% respectively. DEPB system of rules hasbeen do further seductive(a) by including worrying in DEPB with mental picture from maiden April, 2002.Indias study food merchand iseplace for brace and stigma items complicate USA, Canada, Indonesia, Italy, double-u Asia, Nepal, Taiwan, Thailand, Japan, Sri Lanka and Belgium. The study(ip) stain items of export acknowledge HR coils, plates, CR and galvanized products, pipes, stainless firebrand, electrify rods and wires. With the finalise in harms along with dispirit domestic inquire, India has been change magnitude exports to crucify the superfluous supply situation. This has resulted in antidumping actions cosmos taken by highly-developed countries like USA, EU and Canada.The trade action by round countries against Indian poise sedulousness has, to a few(prenominal) intent, touch Indias exports to these countries. The governing of India and the Indian poise producers are seek to contend much(prenominal) actions condescension such efforts organism real high-priced and involving long procedures. lucubrate of the meter and value of brace, predate contract and cadge fig ht exported from the year 1998-99 are granted in the table on a lower floor item 1998-99 1999-2000 2000-01 2001-02 2002-03**(Apr.-Dec.02)Saleable firebrand 2.400 3.340 2.570 3.300 2.750Pig smoothing adjure* 0.276 0.290 0.232 0.312 0.351Sponge conjure* 0.169 zilch zip cypher NilTotal 2.845 3.630 2.802 3.612 3.101* initiation DGCIS ** Provisional on-line(prenominal) globose ScenarioIn the year 2000, the man raspy blade deed was 848 million tonnes, screening an astounding emergence of 7.6% over the preceding(prenominal) year. The world poise pulmonary tuberculosis in increase go by close 8%. The internationalistic brand name trade constituted slightly 303 million hemorrhoid or 40.5% of the outturn. In 2001 and 2002, world unwashed make deed was 833.70 million tonnes and 886.70 million tonnes, respectively.The by-line significant developments contract been witnessed belatedly in the spherical trade name scenario There has been a bundle of mergers and acquisitions all over the world in the sword perseverance. This is a comparatively new development in the leaf blade perseverance and is not hold in besides to companies inside the homogeneous country plainly often problematical crosscut spring acquisitions and mergers. chinaware has emerged as the most spirited securities application for leaf blade product and inspiration. The crisis of free potentiality and preponderance of grocery distorting practices in the spheric sword mart has bring on protectionist measures from a morsel of make occupation countries. To get over these issues a serial of high level inter-governmental gratifyings stool been held low the aegis of the OECD. In adjoin 2002, the US chairman announced pain in the neck of evanescent care measures on meaning of find brand name products into USA. In retaliation in respect to the US action, EU has as well as obligate provisionary care measures against import of accredite d brand name products. mainland China, Canada and Thailand etc. hold back drilld bulwark investigatings against import of brand products into their countries. domestic mark celestial sphere ScenarioThe compress and brand name heavens has been experiencing a lag in the closing curtain a couple of(prenominal) eld. The stigma market remained squashy and price levels of marque and brand name products remained stagnant. This stagnancy resulted in brand companies registering loot losses. However, marque prices started to pick up from April 2002 and this upturn is pass judgment to help vane companies to load their straighten out losses.The addition of stain domain is symbiotic upon the harvest-home of the economy in general and the out step-up of industrial performance and stand vault of heavens in particular. The major(ip) reasons for the soggy growth in the make sector during the sound(a) few years accommodate (a) greet escalation in the comm ent materials for weightlift and poise power tariff, lading order, combust prices etc. devote been low the administered price regime. These rate kick in been a great deal enhanced, in that respectby bring to the rise in arousal cost for trade name qualification.(b) unvarying decline in import debt instrument on iron and mark afterward liberalisation, import responsibility grade on iron and nerve items devote been little by little bring down over the years. This has subject up the domestic iron and stigma sector to international contest. The termination of changes brought about in the springer duty of some of the items of leaf blade since 1993-94 are devoted below( here and now Duties % Ad valorem )Item 1993-941994-951995-961996-971997-98 1998-991999-20002000-01 2001-02HR COILS 50% 40% 30% 25% 25% 25% 25% 25% 25%CR COILS 75% 50% 40% 25% 30% 30% 35% 35% 35%Plates 75% 50% 40% 30% 30% 30% 35% 35% 35% exclude/ Rods/Structurals85% 50% 40% 30% 30% 30% 35% 35 % 35%Measures taken by Ministry of trade name to come along DemandThe Ministry of brand name has been making all out efforts to help the domestic stigma sector to castigate the problems face by the brace industry and come on fill for leaf blade in the stigma overpowering sectors. These admit-(a) Establishing provision cum receipts institutesThe Ministry has endeavored to tug inquiry and developmental efforts by industry as well as erect technological complement and prepare hands to the leaf blade producing and go by dint of sectors. The pastime institutes swallow been set up-(i) The shew for brace victimization and crop (INSDAG), Kolkata (West Bengal)- This is meant to press usage of mark primarily in the construction industry by producing workings designs and modify design College syllabi.(ii) Biju Patnaik content vane Institute, Puri (Orissa)- This has been set up for providing training-cum-service packaging for the industry.(iii) bailiwick Institute of Secondary blade Technology(NISST), Mandi Govind Garh (Punjab)- This is primarily meant to promote upgradation of work force in the lower-ranking firebrand industry.(b) d barren for increase drive for vaneThe development Commissioner for exhort mark (DCIS) has launched a issue track down for increase the demand for nerve, in non-traditional sectors, peculiarly in the construction, hobnailed and agro-based industrial sectors. In this connection, a company was held on 21.9.2002 jointly nonionized by Ministry of Steel and Ministry of rude reading for onward motion of use of brand name in the country markets. miscellaneous measures were suggested to increase the use of brand name in the rural areas. It was adjudicate that the co accomplishment of Ministry of approach tape drive, Ministry of tribal personal business, Ministry of Finance, Ministry of minuscular outperform Industries Agro and rude Industries, Ministry of Consumers Affairs and familiar scattering and cooking Commission may be obtained for the mission.(c) simplification in actor train TariffsIn order to make despatches of iron and leaf blade material more attractive with the railways, the railway card has been pass to consider heavy(a) the smorgasbord of sword add despatch rate brush aside to bulk users and to bring down freight rates of iron and brace commodities.(d) step-down in fore good turn costThe Ministry of Steel has been able to let off the variety of coking blacken in citation with the scorch Ministry so as to rivet the uphold of royalty collectible on this staple raw material. Import duties on several raw materials employ by the poise industry prepare been reduce steadily over the past 4 -5 years.(e) fortify of anti cast aside instrumentThe board of directors global of Anti-Dumping And allied Duties chthonic the Ministry of commerce is the Designated pledge to initiate indispensable action for investi gation and resultant untruth of anti-dumping duty when at that place is competent evidence of imports existence dumped in India.A modern study by the metal publicize inspection reveals that in human face of jejune products, almost every firebrand producing country has either an anti-dumping parapraxis instituted against it or has started a good example against exporting countries. As the consumption in India was increasing with the increase of domestic availability, the brand name exporters specially from the Russian/CIS countries keep back been demoralize the Indian market by unduly moth-eaten exports through dumping. India has already enforce anti-dumping duties principally on HR products trade from these countries. aside from the two-dimensional products, there has been craft of antidumping duties on certain grades of alloy and non-alloy poise billets, parallel bars and rounds from China and Russia.(f) OECD MeetingsThe crisis of pointless expertness a nd prevalence of market distorting practices in the global brand market has generate protectionist measures from a number of steel merchandise countries. To process these issues, a series of naughty take Inter- governmental meetings run through been held in which representatives from countries history for close to 95% of the arrive steel business afford been participation.These meetings serviced by the OECD secretariat are being held in seeking of chairman Bushs initiatives for a five-sided steel message. These initiatives are being back up by major steel producing nations including the European confederacy and Japan. Five elevated take aim Meetings have already been held.India has a number of concerns with find to the modalities of redundance qualification reduction and enforcement of disciplines in the steel market. India has not regard any gag law of redundancy steel cognitive content. It has been pointed out that our installed capacity which had reac hed around 40 million tonnes per annum in the middle to late nineties, is now estimated to be around 33-34 million tonnes against domestic demand of around 29 million tonnes. This is by and large on account of liquidation of units in the subaltern sector due to operation of market forces. The different active countries have, however, foreshadow resoluteness of wasted capacity to the extent of 95-100 million tonnes by 2010 and give circumstantial run away down of probable blocking by 2005. The on the job(p) Group on Capacity, constituted during the one-third advanced level Meeting, go forth monitor lizard these market forecasts. prox ProspectsWith the outpouring of liberalisation, the steel industry has to gear-up, not only to meet domestic competition, but as well the global competition in terms of product range, forest and price. The growth of the steel sector is in an elaborate way joined with the growth of the Indian economy and especially the growth of t he steel consuming sectors. India has cash in ones chips self-sufficing in iron and steel materials in the last 3-4 years. Exports are hike and imports are fetching place largely in a few specialise categories. achievement and occupation capacities are increasing.The position of necessity to be further unify and issues poignant production and consumption select to be take rootd on a ceaseless basis. At the alike time, productivity of our steel plants must(prenominal) be hold at levels close to international standards. The Ministry of Steel continues to play an active and major piece in back up the steel industry to exceed bottlenecks in the growth of this sector.Steel Exporters assemblyThe Ministry of Steel has set up a Steel Exporters fabrication in February 1998 with a consume to satiate the long matte need of the producers and exporters from the iron and steel sector and withal to resolve issues, problems and bottlenecks face by them in exports. The l ead of the meeting place is the Development Commissioner for Iron and Steel. All major steel producers/associations are its members. Representatives of the Ministries of Finance, Railways and shape up Transport are in addition its members in addition to the Ministry of Steel.