A final draft note for the new national steel policy will be released by month end for discussions with the stakeholders in the sector.

The government is preparing a new steel policy to revive the steel sector. The Ministry of Steel is likely to float a draft note soon to get comments from the stakeholders. The last steel policy was formulated in 2005 “There is an urgent need for a new policy, in view of the changed domestic and global scenario,” says a top officer in the Steel Ministry. Four task forces that were constituted under the Chairmanship of eminent experts to study, analyse, consult and formulate draft policy documents in different aspects of the subject, have submitted an interim report.

The inputs from these task forces will be vetted by an apex committee, headed by P K Misra Secretary, Ministry of Steel and consisting of representatives of Planning Commission, Ministries, Departments of Central government and concerned State governments. This committee had been constituted to monitor the process of formulation of the new national steel policy. A final draft note for the new national steel policy will be released by month end for discussions with the stakeholders in the sector.

Sources in Steel Ministry pointed that, it is imperative to have a new steel policy considering that the domestic and foreign investors have shown a great deal of interest in setting up steel capacities in the country. Prospective investors include the existing public sector companies like Steel Authority of India Ltd (SAIL) and private sector majors like Tata Steel, POSCO and L N Mittal Group. A senior Steel Ministry official said the 11th Plan period targets have been met, but there is scope for more to do, since, there are new challenges globally and domestically.

“Initial discussion on the 12th Plan proposal has indicated a major thrust to increase consumption and production and reduce the dependence on imports by 30-40 per cent over last year,” said the official. Production of finished steel for sale in the country has been consistently higher than the real consumption of steel in the country. However, a small quantity of import as well as export of various products of steel takes place depending upon the specific requirements of the individual companies. The quantity of import has significantly reduced by about 35.8 per cent during April-September 2011 compared to the corresponding period of the previous year.