New Delhi, May 7 (IBNS) Steel Minister Beni Prasad Verma on Monday said that demand of steel which is indicated by its real consumption is determined by domestic production of steel plus imports and minus exports.
"Joint Plant Committee (JPC) data for total finished steel shows that during the last three years, 2009-10, 2010-11 and 2011-12, Compounded Annual Growth Rate (CAGR) in real consumption has been 10.6% which has exceeded growth in production for sale (8.7%) during this period," Verma said in Lok Sabha.
"Imports of total finished steel have grown at a Compound Annual Growth Rate (CAGR) of 5.3%. Besides meeting the domestic demand-supply mismatch (if any), steel imports take place for a variety of other reasons like non-availability or limited availability of requisite grades/sizes, level of customs duty, effect of relative prices (domestic market vs. imported price)."
Verma said, India is the fourth largest crude steel producer in the world.
To meet the increasing domestic demand, Indian Steel entrepreneurs have announced large-scale expansion of steel making capacity along with upgradation / modernization of existing facilities.
Accordingly, the steel production capacity has increased from 66.34 MT in 2008-09 to 89.29 per annum (provisional) in 2011-12 both in public and private sectors combined.
He said production of crude steel by the Bokaro Steel Plant of Steel Authority of India Ltd. (SAIL) during the year 2011-12 was 3.647 million tonnes, a growth of 1.5% over the last year (2010-11).
However, in March, 2012 crude steel production of Bokaro Steel Plant was 0.32 million tonnes (Provisional), a decline of 6.2% over March, 2011, which may be due to the fact that Bokaro Steel Plant is currently undergoing upgradation / expansion as part of the overall expansion plan of SAIL.