Kochi, Jan 8 (KNN) Crude capacity for steel production is being increased gradually from the present level of 96 million tonnes per annum, even as the user industries of steel, want more domestic production.

Chairing the Parliamentary Consultative Committee meeting at Alleppey near here today, Union Minister of Steel Beni Prasad Verma has said steel production capacity is being expanded gradually. It is proposed to expand steel production capacity to 300 million tonnes by 2025. A roadmap for achieving the target of 300 million tonnes of steel production is under preparation. Public as well as private sector steel plants need to be involved to take necessary steps for achieving the target. This will result in increased employment both in public and private sector, the Minister added.

Verma said, one of the objectives of the meeting is to sensitise about need for growth of steel industry in Kerala.

China’s capacity of crude steel is more than six times at 652 million tonnes at present.

Increasing the crude steel capacity by three times in the next 11 years would not meet expectations of the user industries which are facing the heat of increase in prices recently even as prices in competing China remain low.

Recently the EEPC India, the engineering exporters’ body raised the concern over the issue of high steel prices and expressed disappointment over the fact that increasing steel prices have led to higher cost of production for several value-added industries.

Verma also said that Metal Scrap Trade Corporation Limited (MSTC) has proposed to set up a shredding plant in the country for shredding of used cars, scooters and other miscellaneous goods to add value to recycled scrap.
 
The review of functioning of MOIL Ltd. and MSTC Ltd, the two Miniratna Category – I PSUs under the ministry were the agenda of the meeting.
 
The members were briefed about the steel scenario in the country, functioning of the both companies and the performance of these companies on various developmental topics. (KNN/PC)