Govt may shed 73% stake in steel PSUs

Tripathy said the ministry was in the process of making a blueprint whereby the productivity of steel plants could be increased close to international standards. The government expects a major recovery in the sector after the recent phase of depression in demand.

Domestic demand has started picking up, raising production and production capacities both in the public and private sector, he said, adding it needed to be further consolidated. Issues affecting production and consumption needs should be resolved on a continuous basis, he said.

Tripathy promised to take every effort to remove bottlenecks in the growth of the sector, which he said was intrinsically linked with the growth of the economy. Adequate steps would be taken to boost demand in the domestic market.

He said emphasis would be laid on increasing demand in rural and agro-based industries. Efforts would also be made to reduce the burden on the steel industry by maintaining input costs at a low level.

Meanwhile, a revival in Indian demand and a firming international market is expected to push up domestic steel prices by at least five per cent in 2000-01.

The government is also looking into fresh measures to protect the domestic steel sector, they said. It now sets a floor price for steel imports below which the commodity cannot be imported.

"The steel sector which has been passing through a difficult phase in the recent past is finally looking up. We expect prices to firm up," Tripathi said.

Steel Secretary Ashok Basu said average domestic prices of various steel products, which rose by three per cent last year, was expected to rise by at least five per cent this year.

"Steps will be taken to strengthen anti-dumping and other safeguards to protect the Indian industry from dumping of cheap imports," Tripathi said.

Indian steel companies have complained of cheap imports, saying international competitors are dumping steel at far lower than domestic prices.

Tripathi said his ministry was considering fresh measures to protect the domestic sector, but did not spell them out.

He said the government would take immediate measures to "overcome the bottlenecks" in the way of the sector’s growth.

"Adequate steps will be taken to boost the demand and consumption of steel in the domestic market. Efforts will be made to reduce the burden on the steel industry by maintaining input costs at low level."

Basu said the government in 2000-01, would strive to surpass the previous year’s steel production of 28 million tonnes and iron and steel exports of three million tonnes.

"We will try to cross it. If not, at least we will try to maintain those levels," he said.

Tripathi said many private sector steel plants were expected to come up fast which would boost India’s overall steel output.

"The steel ministry is keen to facilitate these private sector projects to be completed at the earliest," he said.