Domestic steel supply to rise 22 p.c.: JPC

KOLKATA, JUNE 3. Domestic supply of steel in India during the current financial year is likely to increase by 22 per cent, a study by Joint Plant Committee (JPC) said in a report.

The JPC, constituted by the Ministry of Steel, also said gross production of steel during 2000-01 would be around the region of 37.17 million tonnes. After accounting for exports, the domestic supply of steel would be around the region of 31.27 million tonnes.

In the previous year, supply of steel was to the tune of 26.82 million tonnes, the JPC study said.

In terms of apparent consumption of steel, the study said there was a 6 per cent rise last year.

Apparent consumption, as defined by JPC, is the total of production and imports minus exports adjusted for variation in stock.While apparent consumption in 1999-2000 was 25.09 million tonnes, it had risen to 26.65 million tonnes in the last financial year.

The JPC study also noted that production by major steel companies such as Steel Authority of India, Indian Iron and Steel Company, Tata Iron and Steel Company and Visakhapatnam Steel Plant had been 12.48 million tonnes.

On domestic demand, the JPC study projected that it would be around 31.57 million tonnes during the current financial year.

The study said apparent consumption of steel is likely to go up substantially in the current year in view of the Gujarat earthquake where reconstruction work was being carried out in full swing.

Rebuilding Gujarat would require large-scale usage of steel- intensive structures in the quake-affected areas.

It said the national steel policy would go a long way in preparing a road map for the industry in the next five to ten years.

The policy would also help the industry in assessing the demand- supply of steel, enhance competitiveness, avenues for increasing consumption, widening application base, suggesting directions to deal with cheap imports, and identifying bottlenecks in exports.

Meanwhile, to control the flow of imports, the Steel Ministry had already made mandatory that quality should comply with standards as notified by Bureau of Indian Standards (BIS).

- PTI

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