Steel demand will continue to grow: Minister

New Delhi, Nov 6 : Steel Minister Virbhadra Singh today said the domestic demand for steel will continue to grow with an increased expenditure on infrastructure and there is an urgent need to raise capacity of the steel and iron ore firms in a time-bound manner without increasing costs.

Addressing a Parliamentary Consultative Committee meeting here, Mr Singh said the domestic steel industry has recorded an impressive growth in production and consumption of the steel during the first two quarters of the current fiscal.

'In view of the expected expansion in domestic demand for steel, there is an urgent need to add to domestic capacity,' he said.

Rashtriya Ispat Nigam Ltd is already doubling its capacity from three million tonnes per annum (MTPA) to 6.3 MTPA at the cost of Rs 12,200 crore.

National Mineral Development Corporation Ltd, a navratna company, is also increasing its iron ore production capacity from the existing 30 million tonnes to 50 million tonnes.

He apprised that Manganese Ore India Ltd (MOIL) with a turnover of Rs 1,284.84 crore is placed among the top five manganese ore or alloy or value added products producing companies in the world and has enormous potential.

'With a view to enhancing the total production potential, MOIL is currently undertaking a number of mine deepening and shaft sinking schemes at its various mines. With these measures, MOIL will be in a position to consolidate its position further,' Mr Singh apprised.

The members, who attended the meeting, demanded that the availability of steel in rural and remote areas should be augmented by expanding the dealership network of the state-run steel companies.

They also expressed their disappointment on delay in granting mining lease for iron ore and allotment of coal blocks to PSU steel companies, urging the government to take some urgent steps to resolve the issue.

--UNI

(c) 2009 Published with permission from United News of India.
Unauthorised publication of any content from NewKerala.Com is prohibited