News Makers

14 September 2019STEELWORLD

Indian steel industry is facing

some challenges amid the

ongoing trade war between the US

and China, according to Union Steel

Minister Dharmendra Pradhan.

The minister also noted that the

global steel industry is facing the

challenge of surplus production.

Pradhan was interacting with

reporters on the side-lines of two-

day International Galvanising

Global steel industry faces surplus output: Dharmendra Pradhan

Conference event here.

When asked if the local industry

could face challenges amid the

ongoing US-China trade war, the

minister replied in affirmative.

"It's facing," he said, without

speaking further.

According to official data, share

of imports of finished steel from

FTA countries such as Korea, Japan

and Indonesia aggregated around

70 per cent of total imports to India

in August 2019.

Earlier, speaking at the

conference, the minister also said

that India will become top energy

consumer in the world in the next

two decades.

"I don't know what is the finished

product export quantity of (zinc

products) to world market but I see

being associated to petroleum

sector for last five years that though

we are importing crude oil, there is a

huge scope for exporting petroleum

products to the different part of

world apart from our own market...

today, in energy we are number

three consumer in the world. In the

next two decades, India will be the

number one energy consumer of the

world," he said.

Speaking about the areas of

energy consumption, Pradhan said,

"It will be consumed in

transportation, household

electrification, but primary

consumption will come from

industry. Industries related to

manufacturing, industries related

to services, related housing, capital

good product etc".

Global companies such as

BHP, Peabody Energy, and

Glencore can now own coal mines

and carry out related operations in

India, with the cabinet approving

100% foreign direct investment

under the automatic route in mining,

processing, and sale.

The move to fully open up coal

mining to foreign players could help

get latest technologies, reduce fuel

shortages that have crippled the

power sector, and boost economic

growth by attracting fresh

investment. It follows an earlier

decision allowing commercial coal

mining by private operators, ending

Coal India’s monopoly.

"There is a little slowing down of

FDI worldwide so we have taken

some significant decisions; 100%

FDI for coal mining and all related

Coal sector gets nod for 100% FDI

processing activities will be allowed

under the automatic route,"

commerce and railways minister

Piyush Goyal said at a media

briefing.

“The FDI has been allowed for

coal mining activities including

associated processing

infrastructure subject to provisions

of Coal Mines (Special Provisions)

Act, 2015 and the Mines and

Minerals (Development and

Regulation) Act, 1957 as amended

from time to time, and other

relevant acts on the subject,” a

statement issued after a cabinet

meeting said. Associated

processing infrastructure would

include washery and facilities for

crushing and coal handling, it said.

Currently, 100% FDI under the

automatic route is allowed for

coal and lignite mining for captive

consumption by power projects as

well as iron and steel and cement

units. FDI is also permitted for

setting up processing plants like

washeries subject to the condition

that the company shall not do coal

mining or sell the washed or sized

coal in the open market. They

must, under the existing rules,

supply the processed coal to

those who are supplying raw coal

to them.