Steel industry owes Rs. 3 lakh crores to banks

New Delhi, Aug 1 (KNN) Union Steel Minister Chaudhary Birender Singh today informed the Lok Sabha that the steel industry has outstanding loans of around rupees three lakh crore in various banks, thus making the sector one of the largest contributors to non-performing assets (NPA) in the country.

Minister said that efforts are on by banks and Reserve Bank of India (RBI) to restructure the loans given to the steel industry so that the loans could be recovered.

Responding to Congress Member Jyotiraditya Scindia's comment that the steel sector was one of the largest contributors to NPA in the country, he said "Yes, it is true that the steel industry has an outstanding loan of around Rs 3,00,000 crore."

Expressing concern over the prevailing situation in the steel industry, Singh said the government was making efforts to revive the industry so that the steel companies repay the loans.

The Minister said that China has produced 25 to 30 per cent more steel than its domestic consumption and the country has been trying to export steel to India where its demand is growing.

With Chinese steel in the market, the prices have fallen, resulting in the domestic steel producers suffering heavy losses.

To check this situation, the government has imposed Minimum Import Price (MIP) for steel with effect from February which helped the price again going upward in the last 2-3 months, Singh said.

"However, the global steel price continues to be low, which is a matter of concern," he said. (KNN Bureau)