National steel policy

SC MATHUR

Posted online: Tuesday, November 08, 2005 at 0000 hours IST

Steel producers and consumers will indeed welcome finalisation of the National Steel Policy, since it is a basic input for industrial growth and infrastructure development and adequate availability at fair prices is vital for the economic development of the country. A pragmatic and transparent policy framework and roadmap for growth will promote investments and mobilisation of resources.

We trust that based on the recommendations of the task force constituted by the ministry, the development requirements of the secondary sector, which accounts for over 40% output of finished steel, have also received due consideration in the policy framework. India has been ranked as one of the low cost producers of steel, due to abundant availability of iron ore, cheap skilled labour and a sound technical base. As in China, the policy should focus on the domestic market and the industry should act as an engine of growth, in close collaboration with the manufacturing sector. Steel is a raw material-based industry and demand largely depends on growth of the manufacturing sector and infrastructure development, necessitating dovetailing of plans of the input industries on the one hand and the consumers on the other.

The Cold Rolled Steel Manufacturers Association of India (Corsma) had, therefore, proposed a joint body of steel producers, input suppliers and major consumers for a continual monitoring of the dynamic and volatile global and domestic markets. The idea was to recommend changes in fiscal and trade policies to achieve the production targets. We trust these proposals have been included.

The writer is executive director, Cold Rolled Steel Manufacturers Association of India