Mumbai, Dec 16: Faced with an unprecedented 13 per cent plus non-performing assets in the domestic steel industry and rising underutilisation of capacities in the domestic steel sector, the Government has, for the first time, set up a National (Steel) Campaign Committee.The aim is to boost the overall steel consumption in the domestic market and impress upon the 800-plus Parliament members to clear the passage of some of wide-ranging changes that are expected to be tabled during the Budget Session in February next year.
``As part of steel promotional campaign, we will seek the support of the 800-plus Parliament members with the proposals to increase steel consumption and reduce the use of substitutes like asbestos in rural markets, wood in construction and commercial vehicles and the like,'' said Joint Plant Committee chief planning manager S Bhattacherjee.
Speaking to The Financial Express after the inauguration of Asian Steel Conference 99, Bhattacherjee said: ``We have even informed the Prime Minister's Office to take up this issue. After the Parliament members approve these proposals, we will come up with legislation changes restricting the use of substitutes of steel.''
With this efforts, India's low per capita consumption of steel is expected to go up from paltry 24 kgs against the highest level of 1,200 kg in Singapore as also lift the ailing steel industry.
The total investments in the domestic steel sector is estimated to be over Rs 91,000 crore, and of the Government's total investments, around 15 per cent is said to be invested in the steel sector alone- SAIL; Rashtriya Ispat Nigam Ltd and others.
Coupled with the continuous pressures from the players in the private sector crying wolf over the liberalised trade regime, it was inevitable for the Government to look otherwise.``The committee is already working on promoting steel storage systems for food grains and water tanks,'' said JPC chairman RK Prasannan.
``The Committee has also identified thrust areas such as construction, infrastructure and rural industries,'' he added.
Prasannan was delivering the keynote address on Thursday at the three-day Asian Steel Conference 99 held here.
The Government has also resorted to promotional sale of metal bins for storage of grains in rural regions. ``The concept has proved success in the northern regions,'' Bhattacharjee said.
Following this, the government, jointly with ministry of agriculture, will sell 10,000 bins each in Maharashtra, West Bengal, Tamil Nadu at a concessional price of Rs 400-450.
Further, the government is also set to promote the `all steel truck body' replacing the woods in the commercial vehicles. These vehicles will initially be manufactured by Lloyd Steel, Bhattacherjee said.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.