The Union Minister of Steel, Chaudhary Birender Singh chaired a meeting of Consultative Committee of Ministry of Steel in Dharamshala today. The Members of Parliament discussed and appreciated the new National Steel Policy 2017 and the new Policy for Providing Preference to Domestically Manufactured Iron & Steel Products in Government Procurement which were.
The Chairman & Steel Minister said that our focus is on enhancing domestic consumption, high quality steel production and making the Sector globally competitive in the country.
The most significant and far-reaching of all policy interventions is the rolling out of the National Steel Policy 2017. The policy lays forward the road map for the industry in the coming years and will help in harnessing the sector’s untapped potential. The policy reflects the aspirations of domestic steel industry for achieving 300MT of steelmaking capacity by 2030-31. This translates into additional investment of about Rs. 10 lakh Crore and 1.1 Million additional workforce getting employed in the steel sector.
Key features of NSP 2017 include:
- creating self-sufficiency in steel production
- encouraging adequate capacity additions,
- developing globally competitive steel manufacturing capabilities,
- cost-efficient production and domestic availability of iron ore, coking coal & natural gas,
- facilitating foreign investment & asset acquisitions of raw materials
- enhancing the domestic steel demand.
As part of the NSP, emphasis is also being laid at considering the total life cycle cost while evaluating projects rather than looking at just the upfront cost in isolation. This would encourage greater usage of steel in Government as well as private sector.
The other policy mandates to provide preference to Domestically Manufactured Iron & Steel Products (DM1&SP), in Government Procurement. The policy is applicable on all government tenders where price bid is yet to be opened. DMI&SP policy provides a minimum value addition of 15% in notified steel products which are covered under preferential procurement. In order to provide flexibility, Ministry of Steel may review specified steel products and the minimum value addition criterion.
There are provisions in the policy for waivers to all such procurements, where specific grades of steel are not manufactured in the country, or the quantities as per the demand of the project cannot be met through domestic sources.
The policy is envisaged to promote growth and development of domestic steel Industry and reduce the inclination to use, low quality low cost imported steel in Government funded projects. It shall be the responsibility of every Government Agency to ensure implementation of the policy.
The members who participated in the meeting and put forth some important suggestions during the discussions included:
- Dr. Anupam Hazra
- Shri M. Chandrakasi
- Shri Janardan Singh Sigriwal
- Shri Bodh Singh Bhagat
- Shri Sher Singh Ghubaya
- Shri Shyama Charan Gupta
- Shri Laxman Giluwa
The Officials from Steel Ministry who participated included the Secretary Steel Dr. Aruna Sharma, Shri Saraswati Prasad Addl. Secretary and Financial Advisor and Joint Secretaries Shri Sunil Barthwal, Shri Syedin Abasi, Smt. Urvillla Khati and Shri T. Srinivas, Industrial Advisor Shei S.K. Bhatnagar among others.