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Steel production target may be met: Govt

India has targeted 86 million tonnes of steel production in the current financial year.

Written by Agencies | Hyderabad | Published: September 18, 2012 6:01:54 pm

Government today expressed confidence of meeting the steel production target for the current financial year.

Steel Secretary D R S Chaudhary,said the brown field expansion programmes of public and private steel plants are on track.

“There is no revision of (steel production) targets in the second or third quarter or for the full year. We will meet the targets,” Chaudhary told reporters on the sidelines of a function here.

He said India has targeted 86 million tonnes of steel production in the current financial year. Last year it produced 74 million tonnes.

“SAIL is investing Rs 75,000 crore for brownfield expansion of its plants. Private sector plants are also going for expansions. Tatas are going for 10 million tonnes. Many of the plants are growing so the Brownfield expansion is on stream,” he said while elaborating on the expansion plans.

In reply to a question,the official said the Government has no role to play in iron ore pricing which is dynamic.

“So the prices do go up and come down. It is deregulated price. Government does not control prices of steel or iron ore,” Chaudhary said.

Chaudhary said steel demand in India is still high and the ore pricing depends on demand and supply.

Iron ore miner NMDC has recently hiked the prices by 8-13 per cent,which steel makers alleged was an attempt to cash in on the current “monopolistic” circumstances of the business.

Following the hike,price of lumps with 65 per cent iron content would go up to Rs 6,100 a tonne and up to Rs 3,000 a tonne for fines containing lesser iron.

Indian steel mills mostly use lumps.

This is for the second consecutive quarter the state-run miner has raised prices of raw material in this fiscal.

During the last quarter,it had increased prices by 8-10 per cent on increased demand and lower availability.

Replying to query on the import duties of steel,the official said: “The import duty is on par with the agreed norms. We have signed an agreement with WTO,” he said.

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