Industry and Company Awareness

Summary

This document presents an overview of the Indian steel industry, encompassing global steel scenarios, the history of steel, and the role of the Steel Authority of India Limited (SAIL). Key aspects of industry operations, including details of formation, current status, production strategies, raw materials, and transportation strategies, are covered.

Full Transcript

INDUSTRY AND COMPANY AWARENESS 1 INDEX SL NO 1.0 1.1 1.2 1.3 1.4 1.5 2.0 2.1 2.2 2.3 3.0 3.1 3.2 3.3 3.4 3.5 4.0 4.1 4.2 4.3 4.4 5.0 5.1 5.2 5.3 5.4 6.0 6.1 6.2 7.0 7.1 7.2 7.3 CONTENT PAGE NO GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY INTRODUCTION 4 GLOBAL SCENARIO 5 GROWTH OF INDIAN STEEL SECTO...

INDUSTRY AND COMPANY AWARENESS 1 INDEX SL NO 1.0 1.1 1.2 1.3 1.4 1.5 2.0 2.1 2.2 2.3 3.0 3.1 3.2 3.3 3.4 3.5 4.0 4.1 4.2 4.3 4.4 5.0 5.1 5.2 5.3 5.4 6.0 6.1 6.2 7.0 7.1 7.2 7.3 CONTENT PAGE NO GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY INTRODUCTION 4 GLOBAL SCENARIO 5 GROWTH OF INDIAN STEEL SECTOR 7 OUTLOOK FOR INDIAN ECONOMY 10 STEEL POLICIES AND RECENT INITIATIVES OF MOS 12 VISION, CULTURE AND CORE VALUES INTRODUCTION 21 CULTURE 22 CORE VALUES 22 SAIL – AN OVERVIEW FORMATION AND GROWTH : HINDUSTAN STEEL LIMITED 24 FORMATION OF SAIL 24 PRESENT STATUS OF SAIL 26 EXPANSION AND MODERNISATION IN SAIL 26 DIFFERENT PLANTS / UNITS OF SAIL 27 IMPORTANCE OF MOU FOR SAIL CONCEPT OF MEMORANDUM OF UNDERSTANDING 46 (MOU) THE MOU FRAMEWORK 46 DIGITAL DASHBOARD 47 MOU EVALUATION AND RATING 47 COMPANY STRATEGIES INTRODUCION 48 STRATEGY FORMULATION 49 SAIL’S TRYST WITH CORPORATE PLANS 50 SAIL VISION 2030 52 RAW MATERIALS FOR STEEL PLANTS MINES OF SAIL 54 SAIL MINES 56 TRANSPORTATION IN STEEL INDUSTRY INTRODUCTION 58 LAYOUT OF INTERNAL TRANSPORTATION SYSTEM IN 58 ISPS ROLE OF SUPERVISORS IN CONTROLLING COST 60 RELATED TO TRANSPORTATION 2 8.0 8.1 8.2 8.3 8.4 8.5 8.6 9.0 9.1 9.2 9.3 9.4 10.0 10.1 10.2 10.3 10.4 10.5 10.6 11.0 11.1 11.2 11.3 11.4 12.0 12.1 12.2 13.0 13.1 13.2 13.3 14.0 14.1 14.2 14.3 RELATIONS WITH EXTERNAL AGENCIES INTRODUCTION AREAS OF INTERACTION ORGANIZING PRODUCTION MARKETING OF PRODUCTS INTERFACE WITH GOVERNMENT AND MINISTRY IMPORTANT STAKE HOLDERS ENVIRONMENT MANAGEMENT IN SAIL INTRODUCTION ENVIRONMENT MANAGEMENT POLLUTION IN STEEL PLANT ESG CONCERNS AND GREEN STEEL MAJOR SERVICES IN STEEL PLANTS & THEIR ROLES FOUNDRY REPAIR SHOPS GAS UTILITIES & WATER MANAGEMENT RESEARCH AND CONTROL LABORATORY (RCL) REFRACTORY ENGINEERING CAPITAL REPAIR GROUP MAJOR FUNCTIONS IN STEEL PLANTS AND THEIR ROLES PRODUCTION PLANNING & CONTROL MANAGEMENT SERVICES DEPARTMENT (INDUSTRIAL ENGINEERING DEPT) MEDICAL & HEALTH SERVICES TOWN ADMINISTRATION SAIL SAFETY ORGANISATION INTRODUCTION ROLES & RESPONSIBILITIES TOTAL QUALITY PROCESS INTRODUCTION TOTAL QUALITY MANAGEMENT (TQM) AWARENESS OF ISO STANDARDS SUGGESTION SCHEME / QUALITY CIRCLES SUGGESTION SCHEME BUSINESS EXCELLENCE QUALITY CIRCLE 3 61 61 62 62 63 63 66 69 71 75 78 78 81 82 84 84 85 86 87 87 88 92 99 100 101 103 104 106 Chapter -1 Global Steel Scenario & Indian Steel Industry 1.1 Introduction Though Iron and steel have been used by men for almost 6000 years, yet the modern form of iron and steel industry came into being only during the 19th century. The growth and development of iron and steel industry in the world until the Second World War was comparatively slower. But the industry has grown very rapidly after the Second World War. By 1970, world steel production had reached 595 MT from 189 MT in 1950. However during 1970-2000, rate of growth of steel production somewhat slowed down due to static steel demand in the developed economies of USA, Europe, Japan and USSR and various geo-political crises such as the oil crisis of 1970s, Afghansitan war 0f 1980s and Asian currency crisis of 1997. World Steel production gained further momentum due to rise in production and demand in Asia particularly in China. In 1993, China overtook US and in 1996, it overtook Japan, as the top producer of steel. Since 2000, world steel production has grown rapidly on account of explosive growth of steel production in China. From a production figure of just 131 MT in 2000, China’s crude steel production rose to 1,013 MT in 2022 which was 54% of total world steel production. Steel production temporarily dipped in 2008 due to global financial crisis and in 2016 due to production clampdown by China. But otherwise Chinese steel production since 2000s have seen a steady growth rate. As per OECD (Organisation for Economic Co-operation and Development), following several years of decline until 2018, global steelmaking capacity has posted four consecutive years of growth in the period 2019-2022. The latest available information (as of December 2022) suggests that global steelmaking capacity grew to 2,459.1 MT by the end of 2022, an increase of 1.3% over 2021. Historical Background There are evidences that man knew the use of iron since the ancient civilization of Babylon, Mexico, Egypt, China, India, Greece and Rome. Archeological findings in Mesopotamia and Egypt have proved that iron or steel has been in the service of mankind for nearly 6000 years. The origin of the methods used by early man for extracting iron from its ores is unknown. In early days the iron produced probably was so relatively soft and unpredictable, that bronze continued to be preferred for many tools and weapons. Eventually iron replaced the non-ferrous metal for these purposes when man learned how to master the difficult arts of smelting, forging, hardening and tempering iron. 4 In the beginning, iron was smelted by charcoal made from wood. Later coal was discovered as a great source of heat. Subsequently, it was converted into coke, which was found to be ideal for smelting of iron. Iron kept its dominant place for 200 or more years after the Saugas works the first successful Iron Works in America, was founded in 1646. About the mid-19th century the new age of steel began with the invention of Bessemer process (1856) making steel available in large quantities at reasonable cost. Indian History Indian history is also replete with references to the usage of iron and steel. Some of the ancient monuments like the famous iron pillar near New Delhi or the massive beams used in the Sun Temple at Konark bear ample testimony to the technological excellence of the Indian metallurgists. The history of iron in India goes back to the ancient era. Our ancient literary sources like Rig Veda, the Atharva Veda, the Puranas and other Epics are full of references to iron and to its uses in peace and war. According to one of the studies, iron has been produced in India for over 3000 years, in primitive, small scale facilities. 1.2 Global Scenario Crude steel production 2022 (WSA) Total world crude steel production was 1,878.5 MT in 2022, down by 4.2% over 2021. India was the second largest producer of steel in the world in 2022. List of top ten producers of steel in the year 2022 is given below: Rank 2022 2021 %2022/21 1 013.0 1034.7 -2.1% 1 China 2 India 124.7 118.2 5.5% 3 Japan 89.2 96.3 -7.4% 4 United States 80.7 85.8 -5.9% 5 Russia (e) 71.5 77 -7.2% 6 South Korea 65.9 70.4 -6.5% 7 Germany 36.8 40.2 -8.4% 8 Turkey 35.1 40.4 -12.9% 5 Rank 2022 2021 %2022/21 9 Brazil 34.0 36 -5.8% 10 Iran (e) 30.6 28.6 8% Total Production of Crude steel; from 2017 to 2022-World, China, RoW World Steel Demand (WSA) The World Steel Association forecasts that the world steel demand will grow by 1.8% in 2023 and reach 1,814.5 Million T after contracting by 3.3% in 2022. In 2024, world steel demand will see a further increase of 1.9% to 1,849.1 Million T. China’s finished steel consumption in 2023 is expected to grow by 2.0% to 939.3 MT. Finished steel consumption in developed economies is likely to come down by 1.8% to 1814.5 MT in 2023 while the same in India is likely to shoot upto 126.1 MT, up by 8.6%. As per WSA, world steel demand has been feeling the impact of the high inflation and interest rate environment. Since the second half of 2022, the activities of steel using sectors have been cooling sharply both for most sectors and regions as both investment and consumption weakened. The situation continued into 2023, particularly affecting the EU and the US. Considering the delayed effect of the tightening monetary policy, WSA expects steel demand recovery in 2024 to be slow in the advanced economies. Emerging economies are expected to grow faster than developed economies. 6 1.3 Growth of Indian Steel Sector Steelmaking capacity in India has been expanding rapidly in recent years, and the country is now ranked second after China in terms of crude steel production. Further growth is expected in the medium to long term. The growth in the Indian steel sector has been driven by rising domestic demand for steel, low per capita steel consumption, domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing output. India was the world’s second largest steel producer in CY’2022 with a production figure of 124.7 MT, up by 5.5% y-on-y. In CY’2023, India is likely to produce 145 MT of crude steel. 7 Period Production for sale (MT) Import (MT) Export (MT) Consumption (MT) 2017-18 104.9 7.5 9.6 90.7 2018-19 101.2 7.8 6.3 98.7 2019-20 102 6.7 8.3 100.0 2020-21 95.1 4.7 10.7 94.1 2021-22 113.5 4.6 13.5 105.7 2022-23 121.3 6.02 6.71 119.7 Market Size India’s current crude steel production capacity stands at 161 MTpa. Unlike other large steel producers, the Indian steel industry is also characterized by the presence of a large number of small steel producers who utilize sponge iron, melting scrap and non-coking coal (EAF/IF route) for steelmaking. 8 Outlook for Indian Steel industry Following the initial spurt in domestic steel prices, due to onset of Russia-Ukraine war in February, 2022, prices started coming down from April, 2022 onwards, to mirror the falling international prices and weakening raw material prices. Imposition of Export Duties on Finished Steel by the Government of India in May, 2022, further accelerated the price decline.Consequently, in November, 2022, India’s Finished Steel Exports were only 0.34 MT, down by 53.1% over the previous year. As a result, many Indian mills opted for maintenance shutdowns due to non-remunerative steel prices. Such curtailed exports and falling steel prices, led to the domestic steel majors recording huge financial losses in Q3 of FY 2022-23. However, domestic steel prices started rising from December onwards supported by rising international steel prices and better performance by domestic end-user industries. While Indian Finished Steel Exports during the Financial Year 2022-23 were 6.71 MT, down by 50.2% as compared to previous financial year, imports were up by 29.0% to 6.02 MT. India’s Finished Steel Consumption during the year was 119.17 MT, up by 12.7% as compared to CPLY.Meanwhile domestic steel producers stayed on course to expand their production capacities. To promote production of Specialty Steel in India, the Ministry of Steel signed 57 MoUs with 27 companies under the Production Linked Incentive (PLI) scheme, which is expected to generate investment of about Rs.30,000 crore and create additional capacity of about 25 MT of specialty steel in next five years. In view of the rising concerns worldwide, the GoI has also started promoting Green Steel. The Centre plans to support Green Hydrogen based DRI projects as well as push primary steel producers to increase the usage of scrap in steel production. As per World Steel Association’s April, 2023 Short Range Outlook, after growth of 8.2% in 2022, India’s Finished Steel Consumption is expected to show healthy growth of 7.3% in 2023. India remained a bright spot in the Global Steel Industry in 2022. Having managed inflation well, the Indian economy is on a healthy growth track, with a rising share of investment in GDP, thanks to strong Government spending on infrastructure. The Real Estate sector is also expected to grow, backed by affordable 9 housing projects and urban demand. Private investment is improving on the back of the Production Linked Investment (PLI) Schemes. Steel Prices : Price regulation of iron & steel was abolished on 16.1.1992. Since then, domestic steel prices are determined by the interplay of market forces. Domestic steel prices are influenced by trends in raw material prices, demand – supply conditions in the market, international price trends among others. As a facilitator, the Government monitors the steel market conditions and adopts fiscal and other policy measures based on its assessment. The fluctuations in retail prices of steel (TMT, HRC and CRC) may be seen from the following graph: Road ahead India is the world's second largest producer of crude steel and its steel making capacity is projected to increase to about 300 MT by 2025. Huge scope for growth is offered by strong economy, India’s comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors. Major threats include import dependency of coking coal, rising Chinese exports, overcapacity, worldwide focus towards Green Steel and high dependency on imports of steel making equipment 1.4 Outlook for Indian Economy India’s GDP grew by 7.2% in FY’22-23 as against 9.1% expansion in the previous fiscal. Despite the rate of GDP growth, coming at a slightly lower rate than the previous year, India remained one of the fastest growing economies among major global players. 10 The GDP growth of 7.2% was higher than the 7% median estimate in a Bloomberg survey as well as the Govt. forecast made three months ago. RBI successively raised Repo rates from a level of 4.0% in April’22 to a level of 6.5% in April’23 to contain the shooting inflation rate (CPI) which had reached eight year high of 7.8% in April’22. However, inflation has come down subsequently to 4.8% in June’23. Growth in Index of Industrial Production in the FY’22-23 was 5.1% as compared to 11.4% in the previous year. Growth in Manufacturing, Capital Goods and Consumer Durables sectors in FY’22-23 was 4.5%, 12.9% and 0.5% respectively as compared to 11.8%, 16.9% and 12.5% in the preceding year. India's merchandise exports faced tough conditions in FY’22-23, due to strong global headwinds and slowdown in major advanced economies. The merchandise exports in FY’22-23 rose to US$ 447.46 bn., up by just 6.0% over last year. Merchandise trade deficit during the year was US$ 266.78 bn. due to rising imports especially of coal, oil and gas. However, due to good performance of Services sector, overall trade deficit during FY’22-23 was US$ 122 bn. Government of India is giving strong impetus on infrastructure development and increased the outlay for capital investment in the Union Budget for the financial year 2023-24 by whopping 33% to Rs.10 lakh crore, which would be around 3.3% of GDP. Industry leaders have expressed confidence in the resilience of Indian economy. Amidst all the gloom enveloping the advanced economies, India has emerged as an island of hope for global investors, as its strong domestic demand rebounds after a pandemic-induced slowdown. 11 The automobile sector is considered to be a strong indicator of the prevailing economic scenario. India’s total automobile sales in the Financial Year 2022-23, as per Federation of Automobile Dealers Associations (FADA), witnessed a double-digit growth of 21%, at 2.21 crore nos. (approx.), wherein, all categories, except tractors saw a double-digit growth. Tractors sales, meanwhile, grew by only 8%. Forecasts for India GDP growth for FY’23-24 RBI 6.5% IMF 6.1% Fitch 6.3% ADB 6.4% Deloitte India S&P 6 – 6.3% 6% 1.5 Steel Policies and Recent Initiatives of Ministry of Steel A. NSP 2017 – Vision, Mission & Objectives Steel is a product of large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation. It is also one of the most important products of the modern world and of strategic importance to any industrial nation. From construction, industrial machinery to consumer products, steel finds its way into a wide variety of applications. It is also an industry with diverse technologies based on the nature and extent of raw materials used. In India, steel has an output multiplier effect of nearly 1.4 on GDP and employment multiplier factor of 6.8. 12 Today, the Indian steel industry contributes approximately 2% to the country’s GDP and employs about 5 lakh people directly and about 20 lakh people indirectly. The National Steel Policy 2017 (NSP 2017) is an effort to steer the industry to achieve its full potential, enhance steel production with focus on high end value added steel while being globally competitive. India’s competitive advantage in steel production is driven, to a large extent, from the indigenous availability of high grade iron ore and non-coking coal – the two critical inputs of steel production. In addition, it also has a vast and rapidly growing market for steel, strong MSME sector and a relatively young work force with competitive labour costs. Driven by the positive demand outlook and prevailing high prices of steel in the period post 2004, the Indian steel sector witnessed a wave of investments in the states of Odisha, Jharkhand, Karnataka and Chhattisgarh. Substantial new capacity was created and existing plants were modernized. A significant portion of these investments were funded by banks and other forms of borrowings. India today is 2nd largest steel producer in the world. There is significant potential for growth given the low per capita finished steel consumption of 82 Kg in India, as compared to world average of 224 Kg. Indian economy is rapidly growing with enormous focus on infrastructure and construction sector. Several initiatives mainly, affordable housing, expansion of railway networks, development of domestic shipbuilding industry, opening up of defence sector for private participation, and the anticipated growth in the automobile sector, are expected to create significant demand for steel in the country. Further, while the main focus of the industry is on the domestic market, being in close vicinity of the developed west and developing east, provides it a strategic location that augurs well for the industry seeking opportunities for exports of finished goods and imports of some scarcely available raw materials. Over the past two decades, the Indian steel industry has developed capabilities of producing a wide range of value added steel at par with global best practices addressing diverse needs of the end user industries. However, India still needs to make a special effort to domestically produce number of value added products like automotive steel for high end applications, electrical steel (CRGO), special steel and alloys for Power equipment, Aerospace, Defense and Nuclear applications. The Indian steel sector is disadvantaged due to limited availability of some of the essential raw material such as high grade lumpy Manganese ore & Chromite, coking coal, steel grade limestone, refractory raw material, Nickel, Ferrous Scrap etc. Due to shortage of domestic coking coal, both in terms of quantity and quality, pig iron producers/ BF operators in India have to significantly depend on import of coking coal. In the recent past, multiple issues have also adversely impacted the steel sector, viz. cancellations of iron ore and coal mine allocations, delays in land acquisition, environmental clearances, which led to many of the projects facing significant cost and time overruns. Additionally, companies also faced substantially increased operating costs on account of increased logistics & raw material costs and other charges. 13 Vision: To create a technologically advanced and globally competitive steel industry that promotes economic growth. Mission: Provide environment for attaining – i. Self-sufficiency in steel production by providing policy support & guidance to private manufacturers, MSME steel producers, CPSEs & encourage adequate capacity additions. ii. Development of globally competitive steel manufacturing capabilities iii. Cost-efficient production and domestic availability of iron ore, coking coal and natural gas iv. Facilitate investment in overseas asset acquisitions of raw materials. v. Enhance domestic steel demand. Objectives: The National Steel Policy aims at achieving the following objectives – i. Build a globally competitive industry ii. Increase per Capita Steel Consumption to 160 Kgs by 2030-31 iii. To domestically meet entire demand of high grade automotive steel, electrical steel, special steels and alloys for strategic applications by 2030-31 iv. Increase domestic availability of washed coking coal so as to reduce import dependence on coking coal from ~85% to ~65% by 2030-31 v. To have a wider presence globally in value added/ high grade steel vi. Encourage industry to be a world leader in energy efficient steel production in an environmentally sustainable manner. vii. Establish domestic industry as a cost-effective and quality steel producer viii. Attain global standards in Industrial Safety and Health ix. To substantially reduce the carbon foot-print of the steel industry NSP 2017 aims to increase focus on expansion of MSME sector, improve raw material security, enhance R&D activities, reduce import dependency and cost of production, and thus develop a “technologically advanced and globally competitive steel industry that promotes economic growth” eyeing self-sufficiency in production, developing globally economical steel manufacturing capabilities by facilitating investments and cost-efficient productions with adequate availability of raw materials. With focus on R&D, the technology would be of utmost focus over the next decade and MSME steel plants would be the key drivers to achieve the additional capacity required for India’s consumption led growth and improvement in the overall productivity and quality. Expected impact / outcome of NSP 2017 The following targets have been set in the NSP 2017: 14 The other expected impacts are as under: a) India to be world leader in energy efficiency and sustainability, in association with suitable agency, will constantly monitor techno-economic performance of all the steel plants within the country vis-a-vis the global best practices. Transfer of technology for production of automotive steel and other special steels will be facilitated by JVs with global leaders. b) 145 Indian Standards for steel and steel products have already been notified under the mandatory quality certification mark scheme of BIS. Efforts will be made to bring in additional steel products, which are used in critical end-use applications, under the mandatory scheme to ensure protection of human health, environment and safety. c) Attain global standards in Industrial Safety and Health The Ministry is coordinating with steel companies to ensure that on the job trainings on maintaining a safe workplace are provided to employees of the steel companies. d) Substantially reduce the Carbon footprint of the industry In order to address the environment related issues, the Ministry is facilitating the formation of a forum to chalk out best practices and is also focusing on development of a Waste Management Plan for the industry. e) Domestically meet the entire demand of high grade automotive steel, electrical steel, special steel and alloys. 15 Segment wise demand projections : Segments Demand (15-16) Infrastructure (oil refinery, highway, bridges, port, air-port, transportation, urban infrastructure, industrial sheds, pre-fab buildings) Construction (Real Estate) Demand (30-31) 9.5 90 23.5 45 Engineering & Fabrication (Capital Goods, Consumer Durables, boilers, General engineering) 35 43 Automotive 2.5 10 Railways 2 5 Packaging (LPG cylinders, grain bins, GI boxes) 2 6 Energy (power projects, transmission) Ship Building Oil & gas pipeline Defence, space, nuclear Others Total 3 11 4 3 4 2 11 230 wind mills, power 81.5 B. Policy for providing preference to Domestically Manufactured Iron and Steel Products (DMI&SP) Policy in Government Procurement The Government had introduced DMI&SP Policy on 8th May, 2017 to provide preference to domestically produced iron and steel material in Government tenders. Further, to fine tune this objective, the Policy was revised on 29th May, 2019 and on 31st December, 2020. The salient features of the Policy are as under:  This policy provides preference to Domestically Manufactured Iron and Steel Products (DMI&SP) in Government procurement.  The policy covers a list of 49 manufactured products of iron and steel. The policy also covers capitals goods for manufacturing iron and steel products.  While earlier the domestic content was specified as 15-50% on the 49 products of iron and steel, the new list of 49 products have minimum prescribed value addition 16      ranging between 20-50%making it difficult for imported steel to compete with domestic bidders for government contracts. Each Ministry or Department of Government and all agencies/entities under their administrative control is under the purview of the DMI&SP policy as notified by the Ministry of Steel. All Central Sector Schemes (CS)/Centrally Sponsored Schemes (CSS) for which procurement is made by States and Local Bodies come within the purview of this Policy, if that project / scheme is fully / partly funded by Government of India. The policy is applicable to projects where the procurement value of iron and steel products is greater than Rs.5 lakh. The policy is also applicable for other procurements (non-project), where annual procurement value of iron and steel products for that Government organization is greater than Rs. 5 lakh. However, it shall be ensured by procuring entities that procurement is not split for the purpose of avoiding the provisions of this policy. The policy is applicable to purchase of iron and steel products by private agencies for fulfilling an EPC contract and/or any other requirement of Ministry or Department of Government or their CPSEs and also to capital goods for manufacturing iron and steel products in compliance to prescribed quality standards, as applicable. No Global Tender Enquiry (GTE) shall be invited for tenders related to procurement of iron and steel products. No Global Tender Enquiry (GTE) shall be invited for tenders related to procurement of Capital Goods for manufacturing iron and steel products having estimated value upto Rs. 200 Crore except with the approval of competent authority as designated by Department of Expenditure. The policy has provisions 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 and low cost (unfairly traded) imported steel in Government funded projects. Impact of the DMI & SP Policy The increased domestic value addition is expected to contribute to the vibrant steel sector and the associated industries by generating employment and domestic market for their products. This policy has provided and expected to provide significant savings to the Indian Economy and restrict the use of low quality and cheap imported steel in Government funded projects, alongside developing domestic capability for import substitution. DMI&SP Policy has so far resulted in import substitution of Rs. 26,600 Crore approximately. C. Steel Import Monitoring System (SIMS) for import data dissemination 17 Steel Import Monitoring System (SIMS) has been institutionalized which is an online platform for advance registration of intended imports of steel in order to provide granular data on steel imports, 0-60 days in advance to help the Ministry and the industry identify the exact grade being imported into the country in order to plan domestic manufacturing, besides giving advance warning about any surge in imports. SIMS platform was launched on 16th September 2019 for import consignments started at the Port of Entry w.e.f. 1st November 2019. SIMS has enabled the domestic industry to plan their pricing and production strategy and helped the country move towards Aatmanirbhar Bharat in steel making. D. Quality Control Orders/BIS Government has been facilitating supply of quality steel for critical end-use applications such as infrastructure, construction, housing and engineering sector. Ministry of Steel is the leading Ministry with maximum coverage of products under the BIS certifications marks scheme. A total of 145 Indian Standards on Steel and Steel products have been covered under Mandatory Quality Control Orders. These orders prohibit, import, sale and distribution of substandard steel products. The imposition of QCO is in the public interest or for the protection of human, animal or plant health, safety of the environment, or prevention of unfair trade practices, or national security as stated in the BIS Act, 2016. Through the aforementioned orders, Ministry of Steel has so far covered 99 Carbon Steel, 44 Stainless Steel and Alloy Steel products standards and 2 Ferro Alloys under the mandatory BIS Certification Scheme. In addition, as per the data of imported steel grades shared with BIS, more than 250 new steel grades have been included in the existing standards and 5 new standards are under preparation. This exercise is facilitating the upgradation of the Indian Steel Standards at par with Global Standards. This exercise is also facilitating indigenization of many of the imported steel grades for import substitution and “Make in India” initiative. QCO notified by Ministry of Steel and also the experience gained from the discussions held with the stakeholders have resulted in several benefits which are highlighted below:    Strengthening of the Indian Standards and also formulation of new standards by BIS based on the information provided by Ministry of Steel. Promote indigenisation of the imported steel grades by bringing in the importers and the domestic steel producers together. Preventing unfair trade practices such as misdeclaration and under-invoicing of the imported steel consignments. Based on the information shared by Ministry of Steel, the relevant authorities have imposed measures such as ADD, penalties for misdeclaration, etc. E. other Key Initiatives : E.1 Production Linked Incentive (PLI) Scheme: PLI Scheme for domestic production of specialty steel has been approved with an outlay of Rs. 6322 crore by the Cabinet. The five broad categories of Specialty steel, identified under the scheme, are used in a variety of applications including white goods, automobile body and components, pipes 18 for transportation of oil and gas, boilers, ballistic and armour sheets, high-speed railway lines, turbine components, distribution and power transformers. The Scheme has been notified on 29.07.2021 and detailed Scheme Guidelines were published on 20.10.2021. The application process through online system was available from 29.12.2021 till 15.09.2022. The scheme is set to commence from FY:2023-24 (PLI to be released in FY:2024-25). 57 MoUs have been finalized out of 67 applications from 30 companies which were selected under the Production Linked Incentive (PLI) Scheme for Specialty Steel. This will attract committed investment of Rs. 29530 crore with a downstream capacity addition of 25 million tonne and employment generation potential of 70000. E.2 Decarbonization in Steel Sector: Ministry of Steel is continuously engaging with the stakeholders from the steel industry and the concerned stakeholder Ministries/ Departments such as Ministry of Environment, Forests and Climate Change (MoEF&CC), Ministry of Power, Bureau of Energy Efficiency (BEE), Ministry of New and Renewable Energy (MNRE), NITI Aayog etc to achieve net zero emissions by 2070. Detailed discussions on decarbonization and improvement of resource efficiency in Steel Sector were also held in meetings of Consultative Committees of Parliament on “Transition towards Low Carbon Steel-Green Steel on 6th May, 2022” and “Roadmap for Circular Economy in Steel Sector” on 1st July, 2022”. Further, Ministry of Steel hosted a session on the 6th Day of COP 27 event in Sharm-ElSheikh, Egypt on 11th November, 2022 wherein discussion was held on the issues of reducing carbon emissions hinging on technologies such as Green Hydrogen in steel making, Carbon Capture, Storage and Utilization (CCUS), Best Available Technologies on Energy Efficiency as well as transition to Renewable Energy. E.3 PM GatiShakti National Master Plan: With the help of Bhaskaracharya Institute for SpaceApplications and Geoinformatics (BiSAG-N) the infrastructure Ministries have uploaded their rail, road, port networks, etc. on PM GatiShatkti National Portal. Ministry of Steel has onboarded itself on PM GatiShakti Portal (National Master Plan portal) with the help of a mobile application created by BiSAG-N, by uploading the Geo locations of more than 2100 (Twenty one hundred) steel units (including big players) functioning in the country. The Geo location of all the Iron ore Mines and Manganese ore mines has also been uploaded. Ministry of Steel is in the process of uploading the geo locations of the existing slurry pipelines and the laboratories functioning in the steel sector. In addition, Ministry of Steel, in line with the goal of PM GatiShakti Master Plan, has identified 22 high impact projects to develop multimodal connectivity and bridge the missing infrastructure gaps. Planned expansion of railway lines, creation of new inland waterways, roads, ports, gas pipeline connectivity will result in creating much needed logistics solution which will drive the steel sector towards achieving its targeted goals by 2030-31, as delineated in NSP 2017. E.4 Engagement with Secondary Steel Sector: A major segment of iron and steel industry is the segment of secondary producers which contributes more than 40% to 19 the production of crude steel. The role of secondary steel sector in infrastructure development is immense. Not only does infrastructure development provide a stimulus to steel demand but steel intensive construction also leads to rapid building up of infrastructure. Considering the importance of this sector, which mostly consists of MSMEs, Ministry of Steel has organised a seminar under the chairmanship of Hon’ble Steel Minister with the aim of providing a platform to players in the Secondary Steel sector to share their views on the challenges faced by the sector and ways in which the Ministry can create an ecosystem in which the industry can thrive. The issues raised during the discussion were taken up with concerned Ministries such as Ministry of Finance, Ministry of Port, Shipping and Waterways, Ministry of Coal, Ministry of MSMEs and Ministry of PNG. Ministry of Steel also organized seminars at Bhuvneshwar, Indore, Roorkee and Surat to interact with secondary steel producers and consumers to enhance steel demand in the country. E.5 Steel Prices: Certain measures were taken by the Government to provide relief from high prices of crucial raw materials and intermediates, which included iron and steel. Accordingly, modifications were made in tariffs on raw materials of steel and other steel products vide notification dated 21.05.2022 whereby Import duty on Anthracite/Pulverized Coal Injection (PCI) coal, Coke and Semi-coke and Ferro-Nickel were reduced to zero. Export duty on Iron ores/ concentrates and iron ore pellets was raised to 50% and 45% respectively. In addition, 15% export duty was imposed on pig iron and several steel products. 20

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