Net steel imports dip to 2.5 mn tonne in April-Jan.

The country's net steel imports in the first 11 months of the current fiscal have come down to 2.503 million tonne, Parliament was informed today.

"With continuous increase in steel production in the country, net imports have fallen to a level of 2.503 million tonne in the first 11 months of the current financial year," Steel Minister Beni Prasad Verma informed the Lok Sabha in a reply.

Due to a relatively high growth in steel consumption than production, India is a net importer of steel since 2007-08.

"There exists a gap between domestic demand and domestic supply of steel. Certain special varieties are imported to meet specific needs of end users. Import of steel also takes place to meet seasonal and sudden demands," he added.

To a separate question, Verma said that Steel Authority of India has underatken expansion at its five steel plants to enhance capacity to 21.4 million tonne per annum from 12.8 million tonne a year.

Similarly, another state-run unit Rashtriya Ispat would increase capacity to 6.3 million tonne per annum from 2.9 million tonne a year now for an outlay of Rs 12,000 crore.

The Minister said in order to discourage exports of iron ore, an essential input for steel making, the government has increased duty from 20% to 30% with effect from December 30, 2011.

Source : smartinvestor.in