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"No gap between demand and supply of steel "

Posted on Dec 04, 07:04PM | IBNS

Steel Minister Beni Prasad Verma on Tuesday said that during 2011-12, consumption of finished steel in the country was 70.92 MT as against production of 73.42 MT.

In a written reply in the Lok Sabha, Verma said: "As such, there is no gap between demand and supply of the steel in the country."

He said per capita consumption of finished steel in the country is estimated to be 59 kgs.

"Main reasons for lower per capita consumption of steel in India as compared to developed countries, is extensive use of steel in large scale infrastructure activities and other end-use segments of steel like manufacturing in those countries, which is also supported by their rapid economic growth/progress," said the minister.

The minister said in order to assess the pattern and trends of steel consumption in rural India, an all India survey was commissioned.

A report of study on assessment of steel demand in rural India has been received, he said.

"Keeping in view the findings in the report, necessary action has since been initiated to increase and popularize consumption of steel in the country. Several MOUs have been signed for increasing steel production capacity besides expansion / modernization of the existing steel plants," said Verma.