STEEL AVAILABILITY, EXPORTS AND PRICING

The total production of finished steel during April-October, 2005 has been estimated to about 24.25 million tonnes as against the production of 22.85 million tonnes during the same period last year, showing an increase of 7.4%. The apparent consumption during the year has also gone up by 9.3% .

Export of the Steel during April-October, 2005 has been estimated to 2.8 million tonnes lower by 3.46% as compared to 2.57 million tonnes for the corresponding period last year. The lower level of export is due to domestic prices being higher on an average as compared to international prices.

The steel prices were hiked in September, 2005 for the first time since April-2005 . The hike, in the range of Rs. 500-1000 per tonne, followed reduction in steel price in June, July & August, 2005 and was mainly in the form of roll back on discounts/rebates

MERGER OF PSUS

Ministry of Steel as a part of modernization and expansion of existing PSUs has set up an expert group during the year -2005 under the chairmanship of Shri B.L.Das, ex- Secretary (Steel) to evaluate the feasibility of various proposals for merger of PSUs . Expert Group will examine the proposal of merger of NINL with SAIL, merger of mining companies KIOCL with NMDC, merger of raw materials of supply of PSUs with Steel companies, merger of MSTC with FSNL.

CORPORATE PLAN OF SAIL

Corporate Plan of SAIL envisages an investment of Rs. 25,000 crores to upgrade the existing facilities and expansion of some of the units to ensure competitive edge and sustain viability of SAIL by 2012. Here the basic idea is to see that SAIL emerges as the largest steel producing company of the world.

With these measures and initiatives taken by the Ministry of Steel during the year 2005, the Steel sector in the country is set to move upward and overall scenario is positive with accelerated rate of growth in steel sector.