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SRMA STEEL NEWSLETTER

SRMA

Steel Re Rolling Mills Association of India

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Steel Re-Rolling Mills Association of India www.srma.co.in Email : [email protected]

Sl. No, Name

1. Shri B.M. Beriwala,

Chairman

2. Shri Jagmel Singh Matharoo,

Vice Chairman

3. Shri Ramesh Kumar Jain,

Treasurer

4. Shri Sanjay Jain

5. Shri Kailasj Goel

6. Shri G P Agarwal

7. Shri O P Agarwal

8. Shri S K Sharda

9. Shri Sandip Kumar Agarwal

10. Shri S. S. Sanganeria

11. Shri Sanjay Surekha

12. Shri R P Agarwal

13. Shri S. S. Bagaria

14. Shri Girish Agarwal

15. Shri Goutam Khanna

16. Shri Suresh Bansal

17. Shri Rajiv Jajodia

18. Shri Bhusan Agarwal

19. Shri Mahesh Agarwal

20. Shri Sita Ram Gupta

21. Shri Ashok Bardeja

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SRMA Steel News is a division of Steel Re-Rolling Mills Association of India and takes due care

in preparing this news. Information has been obtained by SRMA from sources, which it considers

authentic. However, SRMA does not guarantee the accuracy, adequacy or completeness of any

information and is not responsible for any errors or omissions or for the results obtained from the

use of such information. SRMA is not liable for investment decisions, which may be based on the

views expressed in the News. SRMA especially states that it has no financial liability whatsoever

to the subscribers/users/transmitters/distributors of this News. And no part of this news may be

published/reproduced in any form without SRMA’s prior written approval.



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Executive Summary

Present Scenario of Indian Primary and

Secordary Steel Sector

Environment & Safety Focus

Budget Highlight 2014

Taxation News

Events

Latest Steel News

CONTENTS



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The steel industry of India has entered into a new era of development since 2007-08, riding high on the

resurgent economy and robust demand for steel. Rapid rise in production has resulted in India becoming

the 4th largest producer of crude steel and the largest producer of sponge iron in the world. Indian steel

industry has just delivered a decade of exponential revenue and profit growth The Indian steel industry

has achieved significant milestones in terms of growth in capacity, production and exports to become a

major player in the global steel industry. Between FY2008 and FY2013, India’s steel production has

grown at a compound annual growth rate (CAGR) of about 7 percent.

Recent civilization, It is a material that has a wide range of applications from the manufacture of small

pins to the building of automobiles, railway system, shipbuilding, aircrafts, big construction /

infrastructure projects to nuclear power station and so on. Though steel products are prone to corrosion

with a relatively high strength to weight ratio, yet alternative materials have not been able to make a

significant dent on its consumption. In fact, the global apparent steel use of finished steel has increased

from 976.7 Mt in 2004 to 1283.6 Mt in 2010, recording an average annual growth of 5.24 percent.

Finished Steel Categorization Finished steel are usually divided in two categories viz. Non-flat or Long

Products and Flat Products. In India, JPC shows the break-up of long products as Bars & Rods,

Structurals and Railway Materials. But there are many other steel products under three categories which

are mention below :

Bars & Rods include Rounds, Bars, Rebars, Wire Rods etc. Structurals include Joists / Beams, Angles,

Channels, Z-sections, M.S. Arch etc. Railway Materials include Rails, Wheels and Axles, Sleepers and

crane rails etc. Some Important Long Products Rebars Reinforcement Steel Bars (Rebars) are long steel

products that find application in construction industry.

The usage of Reinforced Cement Concrete has become the accepted standards for construction of

residential and commercial structures, flyovers, bridges, water retaining structures, industrial and power

plants etc. Rebar constitute about 20 to 25 percent of the total materials cost for civil construction.

Growth of Re -bar Industry in India Rebars has been a major steel product among the finished steel

product categories. In 2011-12, rebars accounted for about 35 percent of the total finished steel

production for sale in the country. In India, rebars are produced both by primary and secondary players.

Infrastructure investments in north India to prompt the local steel demand - The government has

announced many mega-investment projects in north India including the prestigious US$100-billion Delhi-

Mumbai Industrial Corridor, slew of export zones and industrial parks across Rajasthan, Haryana and

western Uttar Pradesh. These projects will continue to drive sustained demand for long steel across the

northern states. Regional steel suppliers need to remain competitive on cost and service to play a major

role in the implementation of these projects.

Automobile sector is centered in north India - About 32 percent of the Indian major automobile

manufacturers have strong presence in the north India region including Maruti Suzuki, Hero MotoCorp,

Honda Motorcycle & Scooter, Honda Cars, Bajaj Auto, Yamaha, TAFE, Tata Motors, Ashok Leyland,

and Mahindra & Mahindra. Many auto component, manufacturers too are based in north India. This

provide a tremendous opportunity for Indian auto-component manufacturers in north India.

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The steel industry of India is divided into primary and secondary

sectors. The primary sector comprises a few large integrated steel

providers producing billets, slabs and hot rolled coils, among

others. The secondary sector comprises small units focused on the

production of value added products such as cold rolled coils,

galvanized coils, angles, columns, beams and other re-rollers, and

sponge iron units. Both sectors cater to different market segments.

The Indian Steel Industry comprises integrated steel plants in

the primary sector using BF-BOF route of iron and steel

production. In the primary sector, there are 13 integrated steel

plants in the public and private sectors. The secondary sector

constitutes Electric Arc Furnace (EAF)/Induction, Furnace (IF),

pig iron/Sponge iron units, etc. For producing either semi

finished or finished steel. On the basis of ownership, the Indian

steel industry is broadly divided into private and public sector

enterprises. The private sector dominates production— accounting

for almost 78 percent of the finished steel output while the public sector has higher capacity utilizations.

Indian steel industry comprises of several inter connected segments for value addition broadly classified as

Integrated Producers and Non-Integrated or Secondary producers which are largely small scale units and are

engaged in re-rolling and accounts for over 50 per cent of the total indigenous output. The Secondary Producers

focus on the production of high grade steels and specialty products to meet the specific requirements of the industry

and the development plans must include the strengthening of the

secondary producers along with the major producers.

The Producers, who are also identified as Integrated Steel Producers (ISPs), are large bulk producers having

capacity of more than 1MT . This segment consists of the big players like Steel Authority of India Limited (SAIL),

Tata Steel, RINL, JSW, Essar Steel and Ispat Industries etc. On the other hand secondary producers are the small

producers or processors or producers and processors. It is estimated that about 40 per cent of India‘s crude steel is

produced by the small steel plants.

Apart from this more than 60 per cent of long steel

products are also produced by the Secondary Steel

Producers. The segment is highly heterogeneous

with the units working on standalone basis and

primarily comprising of mini blast furnace units,

sponge iron producers, Induction Furnace (IF) and

Electric Arc Furnace (EAF) units, Rerolling (RR)

units, Hot Rolled (HR) units, Cold Rolled (CR)

units, Galvanized/Color coated units, Tin Plate

units and Wire -Drawing units. The units which are

involved in cold rolling are highest in Maharashtra

followed by Gujarat. Maharashtra also leads in the

number of secondary units involved in production

of steel in India. Integrated steel producers like

SAIL, Tata Steel, V.S.P. and JSWSL produce re-

bars from pure iron ore and has a share of 30 percent in the total market. The balance 70 percent is catered by

about 300-400 producers in the secondary sector.

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ENVIRONMENT MANAGEMENT AND SAFETY ISSUES

Steel as a finished product may be one of the most

environment friendly products used in our daily life, owing to

its excellent mechanical properties, versatility and its

recyclability. Today steel usage also ranges from the ordinary

household items to the complex construction and defense

equipments. However, the process of steel making itself is

highly energy and fossil fuel intensive and therefore the cause

of environmental concerns across the world. In fact, the

manufacturing process involves a myriad operations which

may contribute to three basic sources of pollution i.e., of Air

via volumes of emissions by the plants, of water via liquid

effluents discharged and of soil via disposal of solid wastes.

Over the years the domestic steel industry has updated its technology and maintenance systems and many

of the new units coming up have also opted for adoption of state -of -the -art technology to ensure quality,

productivity and efficiency of operations. But globally we are far behind our competitors not only in

terms of productivity or quality but also the energy consumption levels and introduction of sustainable

production techniques.

Locally steel making industry is normally perceived to be ―large; old; dirty and polluting by civil

society and environmentalists and this has often come in the way of obtaining clearances for setting up of

new production capacities. So despite the industry‘s contribution towards for providing large value added

products and services the environmental concerns linked to the sector and its associated mining industry

has become a serious matter to be addressed on a priority basis.

Our per capita consumption levels of steel is expected to go up in the coming years and this implies

increased investment in large scale expansion of existing facilities and of setting up of new capacities..

This would also imply increased extraction of natural resources and their processing .So unless there are

reduction in the existing consumption norms as well as specific emission intensities it may be difficult to

achieve a balance between increased production and minimum possible damage to the environment by the

industry .

Energy Efficiency and Carbon intensity - Given the various process combination of steel making from

iron ore, there exist substantial differences in the specific energy consumption & carbon emissions levels

or intensities. The Electric Arc Furnace (EAF) route using steel 140 scrap involves the lowest energy

intensities as it is required only to melt the scrap. On the other hand the BF-BOF route which produces

steel from iron ore through many intermediate operations generally involves higher energy consumption

and associated carbon emissions. The energy and carbon intensity of steel production from iron ore is the

lowest for Gas based DRI-EAF route, followed by BF-BOF route and with the Coal DRI- EAF/IF route

being the highest. source : Ministry of steel

<To be continue for next issue > TOP



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BUDGET HIGHLIGHTS 2014

No change in income tax rates; personal income tax exemption limit raised from Rs 2 lakh to Rs 2.50 lakh

Propose to increase investment limit under Section 80C from Rs 1 lakh to Rs 1.5 lakh

Tax exemption on interest component on housing loan raised to Rs 2 lakh from Rs 1.5 lakh

Tax exemption limit for senior citizens changed from Rs 2.5 lakh to Rs. 3 lakh

Annual PPF ceiling to be enhanced to Rs 1.5 lakh, from Rs 1 lakh

15% allowance on Manufacturing company investing Rs20 crores in Plant & Machinery

Concessional rates of 5% on interest extended on all types of bond

32AC is Rs.25crore till 2017

Non deduction of TDS disallowance reduced from 100% of expenditure to 30% of expenditure.

Single KYC norms for all financial services and one demat account for all financial products

10 year tax holiday for power companies who start production and distribution on March 31, 2017

CRT TVs exempted from customs duty to help poor

Imported electronics goods to cost more. A cess to be introduced

Basic custom duty on LCD and LEDs below 19 inch reduced to zero from 10 per cent

Jaitley announces Skill India, a programme to train youth for jobs

Equity in PSU banks to be raised through share sale to the public

Senior Citizens Pension Plan Extended Till August 2015

Aim to achieve 7-8 per cent economic growth rate in next 3-4 years

20 new industrial clusters announced

Budget proposes 49 per cent FDI in insurance through FIPB route

Rs 100 crores to set up virtual classrooms

Rs 500 crores for setting up 5 more IIMs and IITs

FM Proposes to enhance the scope of income tax settlement commission

Women's safety: Rs 100 crores for Beti Bachcao, Beti Padhao Yojana

Fiscal deficit for 2014-15 pegged at 4.3% and for next year at 3%

Long Term Capital gain tax on Debt Mutual Funds increased from 10% to 20% and tenure increased from

12 to 36 months

Cheaper Housing Loan & Tax Incentive for LIG- Low income groups. Allocated Rs.4000 for same.

EPFO to launch unified account scheme to ensure Provident Fund portability

Proposal to introduce single demat account for all types of financial transactions.

Defence FDI cap raised to 49% from 26% at present

Promote FDI selectively in sectors. India needs a boost in job creation in the manufacturing sector

All retro tax cases to be scrutinized by a high-level committee

Arun Jaitley said the Budget is a beginning of journey to return to 7-8% growth.

Government is committed to providing 24x7 electricity in all houses

The government is committed to the welfare of scheduled castes and tribes.

Rs 200 crores credit scheme for start-ups by those from scheduled castes and tribes

Rural housing: Rs 8000 crores for national housing banking programme

Target of 4.1 per cent fiscal deficit is daunting but accepting it as a challenge Govt to provide Rs 7,060 crore

for development of such cities:

We will examine proposal to give greater autonomy to banks: FM.

Propose to provide finance to 5 lakh landless farmers through NABARD

Manufacturing units will be allowed to sell their products through retail and e-commerce: Jaitley.

Committed to sustaining 4% growth in agriculture, extend credit to joint farming groups

Rs 500 crore allocated for stabilizing prices of agricultural commodities

Rs 3600 cr set aside for National Rural Drinking Water: FM

Rural housing: Rs 8000 crore for national housing banking programme

FM announces development of Metro rails in PPP mode; Rs. 100 cr set aside for metro scheme in

Ahmedabad and Lucknow



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Each year government will be adding AIIMS to ensure there is an AIIMS in every state: Jaitley

Rs 7,060 crore allocated for building new cities

Jaitley announces e-visas to promote tourism

Cigarettes, gutkas, cigars to cost more

Revenue deficit pegged at 2.9 per cent of GDP

Budget proposes Plan expenditure of Rs 5,75,000 crore for current ficsal.

Airports to be developed in tier 1 and 2 cities, 16 new port projects to be awarded this year

Investment in NHAI and state highways to the tune of Rs 37,887 crore, including Rs 3000 crore for North

East

500 crore for solar power development project in Tamil Nadu and Rajasthan

Rs 11,600 cr for developing outer harbour projects Rs 11,600 cr for developing outer harbour projects

Mining issues to be resolved on priority

Govt proposes to set up 100 smart cities

MGNREGA programme to made more productive

We need to revive growth particularly in manufacturing sector and infrastructure: FM

Anti-poverty programmes will be targeted well.

Will leave no stone unturned to create a vibrant India: FM.

Should not allow economy to suffer because of indecisiveness and populism: Finance Minister Arun Jaitley

Finance Minister emphasizes on fiscal prudence, need to generate more resources

Sugary carbonated drinks to get costlier

Poor suffer the most, we have to ensure anti-poverty programmes are well targeted.

Tax-GDP Ratio Must Be Improved, says Jaitley

Can't spend beyond our means, need fiscal prudence.

TAXATION NEWS

EY Tax Alert

Chennai ITAT rules that gift by corporates is valid in law and exempt from capital gain tax

A tax alert which summarizes a recent ruling of Chennai Income Tax Appellate Tribunal (ITAT) in the

case of Redington (India) Ltd. (Taxpayer) on the issue whether transfer of shares of subsidiary to its step

down subsidiary by way of gift is valid and whether the same is taxable under the provisions of the Indian

Tax Laws (ITL). The ITAT ruled that gift by corporates is valid in law and presence of “love and

affection” is not a pre-requite of valid gift. Accordingly, transfer by way of gift is eligible for exemption

under the provisions of the ITL, even in the hands of the company. Further, the ITAT held that, even

otherwise in absence of consideration, computation mechanism will fail and, therefore, gift transaction is

not liable for capital gains tax. In the absence of income chargeable to tax under the provisions of the ITL,

the transfer pricing (TP) provisions cannot be invoked or applied.

The ITL specifically provides that a transfer of a capital asset under a “gift” would not be regarded as a

transfer for the purpose of capital gains tax. While the term “gift” is not defined in the ITL, it is generally

understood that a voluntary transfer by one person to another for no consideration could constitute a gift.

Furthermore, there does not appear to be a requirement that gift can take place only between natural

persons. This ruling supports that the corporate taxpayers are also covered by exemption provision. The

ITAT also has reaffirmed that there can be no tax trigger in the absence of consideration and the

computation mechanism of capital gains chapter fails. Further, the ITAT has echoed the principle that in

the absence of income component, the TP provisions should not be applicable.

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2nd India International DRI

Summit 2014

Date: August 1, 2014

Location: Hotel Le Meridien, New Delhi

Minerals, Metals, Metallurgy & Materials (MMMM) 2014

4-7, September 2014

Pragati Maidan

New Delhi

For Booking & Enquiries

International Trade and Exhibitions India Pvt. Ltd.

1106-1107, Kailash Building, 26 K.G. Marg, New Delhi- 110001, India

Tel: +91 11 40828282

Gagan Sahni: +919810036183

Varun Sharma:+91 11 40828208

Smita Roy: +91 11 40828217

Sandeep Arora: +91 11 40828227

13th International Stainless & Special Steels 2 - 4 September 2014

Hotel InterContinental

Istanbul, Turkey

AMM 8th Steel Scrap Conference 10 - 11 September 2014

Hilton New Orleans Riverside

New Orleans, U.S.A

From 28-30 October 2014, Messe Duesseldorf India with its parent company, Messe Duesseldorf GmbH {organiser of wire and

TUBE Duesseldorf, GIFA,

METEC, THERMPROCESS and NEWCAST (GMTN)} and MESSE ESSEN GmbH (organiser of Schweissen & Schneiden),

will organise 4 leading trade fairs for the metals industry in India. They are Metallurgy India 2014, Wire & Cable India 2014,

Tube India International 2014 and INDIA ESSEN WELDING & CUTTING 2014 in halls 1, 5 and 6 at the Bombay Convention & Exhibition Center, Goregaon (East), Mumbai.

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STEEL NEWS NMDC plans to boost iron ore output by two thirds

(Follow @MinesGuru on Twitter for important updates)

Reuters reported that NMDC Limited, India's biggest iron ore producer, aims to ramp up output by two thirds in five years to 50

million tonnes a year, helped by the launch of new mining facilities and expansion of existing infrastructure.

State owned NMDC's plans will add to surging global growth in output of the steelmaking raw material, although a push by the

new government to revive manufacturing and industrial growth may boost domestic appetite for iron ore.

NMDC, which produced close to 30 million tonnes of iron ore in the year that ended in March, or close to a fifth of the country's

production, aims to mine about 32 million tonnes this year and reach its target by 2018 ro 2019.

Mr Narendra Kothari, who took over as NMDC's chairman in April said that "There is a natural demand for iron ore in the

country, we don't have any shortage of demand whatever we produce, we are able to sell.”

NMDC is currently enhancing output at its three existing mines in Chhattisgarh and Karnataka and is in the process of securing

leases for mines in Jharkhand. It has also gained from curbs on illegal mining in Goa and Karnataka states plus the closure in

May of nearly half the mines in Odisha, the top producing state, ordered by the Supreme Court while leases dating back years

were renewed.

Mr Kothari said that he expects international prices for iron ore to firm up in the near term. Iron ore prices have recovered

slightly after the increase in global supply available to top consumer China pushed prices to a 21 month low of USD 89 per tonne

in June. They closed at USD 95.40 per tonne. I feel international price should remain in the USD 95 to USD 105 range for the

next six months."

NMDC, which fixes prices every month, raised its prices by up to 9% in June, taking advantage of the cuts in supply from Odisha

and elsewhere that had prompted some domestic steel makers such as JSW Steel Limited to import the raw material.

Mr Kothari said that "Our quality of iron ore is much better than anyone else in the country so we can demand a little higher price

than the market. NMDC's mines produce ore with higher iron content which are preferred by local steel mills. Every percentage

point increase in iron content improves productivity by 2 percentage points.

He said that NMDC would target exports of about 8 percent to 10% of total production a year, up from about 6 percent in the

year ended March 2013, as it seeks to focus on companies in Japan and South Korea. Demand (for exports) is much more, but

due to the requirement in the country, we are not exporting much."

Source - Reuters

Get latest updates through Twitter – Follow @MinesGuru

( www.minesguru.com)

Indian Iron Ore Mining Mess - 90 companies in CBI net

(Follow @MinesGuru on Twitter for important updates) Economic Times reported that the Central Bureau of Investigation has issued notices to about 90 firms across metros and other cities as part of its efforts to ascertain which of these companies exported iron ore illegally from Mangalore and Karwar ports between April 2006 and December 2010. Although the agency has prima facie data on allegedly illegal exports, it has asked firms located in Delhi, Mumbai, Bellary, Bangalore, Chennai, Hyderabad and Gujarat, among other places, to provide details such as the quantity of iron ore exported, vessel used and the destination.

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CBI officials said that "We have started inquiries to find out who the people are behind these excess exports. If a certain quantity was exported without the DMG's (department of mines and geology's) transport permits, the inference one could draw was it must be illegally extracted ore." CBI officials said that the agency was keen to understand from the companies the quantities for which they secured permits from the DMG. It will later compare the export figures recorded at the ports. The CBI already has all the figures in its custody, but it wants to provide the companies a chance to explain adding that the process would take about three months. It is only after hearing the companies that the CBI will decide whether it has a watertight case to go ahead with prosecution by registering criminal cases. The agency's action follows two preliminary enquiries that its Bangalore branch registered on April 29 after a reference from the state government. The state transferred the case to the CBI by an order on November 18 last year, requesting it to probe illegal extraction, transportation and export of iron ore. While most of the firms on the CBI's radar are mining companies, the agency has also slapped notices on some transporters and exporters. According to the customs data on exports available at the two Karnataka ports, 30 million tonnes of iron ore was exported from Mangalore port and about 8 million tonnes from Karwar port. However, the DMG had issued transport permit for only about 22.5 million tonnes to Mangalore port and about 5 million tonnes to Karwar. Source – Economic Times Get latest updates through Twitter – Follow @MinesGuru ( www.minesguru.com) Press Releases

ASSOCHAM urges government to review any increase in royalty rate on iron ore

(Follow @steelguru on Twitter for important updates)

The apex industry body ASSOCHAM has suggested the Finance Minister to review its budget proposal to increase the royalty

rate on Iron Ore from 10 to 15% with a view to maintain cost competitiveness and sustainable growth of the domestic industry.

In case the proposal was not dropped, 5% increase in the royalty rate coupled with 15% increase in the freight rate by the

Ministry of Railways will increase further the cost of production of steel making and will push the inflation upward which shall

have cascading affect on the Indian economy at large.

In a note submitted to the Finance Minister today, ASSOCHAM has stated that while the royalty rate on iron ore in important

mining countries such as in China and Brazil the rates were only 2% of sales, Queensland 2.7% advalorem, South Africa 3%,

New South Wales 4%, Victoria 2.75%, Western Australia beneficated ore 5%, fines ore 5.625%, lump ore 7.5%, South Australia

3.5%, while in India the rates of royalty were already 10%, highest in the world.

The chamber Secretary General Mr DS Rawat said “setting up an integrated steel plant and development of mining projects are

high risk investments as they have a long gestation period and require large investments in exploration and other development

activities before commercial production can begin. Therefore, the Steel industry should be incentivized by ensuring the

availability of secure supply of raw material at appropriate price.”

Mr. Rawat said “India is the highest taxed country amongst major iron ore producing regions with the proposed royalty rates.

Brazil, the largest iron ore producer with a domestic steel production comparable to India, has a royalty of 2 per cent. Similarly,

Australia has a royalty of 2.7 to 7.5 per cent (depending on ore type). Even South Africa has a royalty of only 3 per cent and,

therefore, there is strong case for not further burdening the industry and consumers to add avoidable inflation.”

The royalty on iron ore, until August 2009 was based on Rs/ton basis; subsequently the rates were changed to 10% of sales price.

Prior to the changes, royalty was in the range of Rs.8 to Rs. 27 per ton, depending upon the quality of iron ore.

Source – Strategic Research Institute, Steel Guru

Get latest updates through Twitter – Follow @steelguru

(www.steelguru.com)

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SAIL chairman sets eyes on 50 million tonne mark

(Follow @steelguru on Twitter for important updates) Business Standard reported that Mr CS Verma chairman of SAIL is using the INR 72,000 crore investments in capacity expansion and modernisation as a learning curve for the bigger task ahead of achieving hot metal production of 50 million tonnes by 2025. Mr Verma said that "Historically, except for IISCO at Burnpur, SAIL has much surplus land at its other integrated steel mills. Considering the challenges of acquiring large land stretches to host new mills, we have the most important enabler, that is, space to expand capacity to at least 50 MT. The current expansion will take our capacity to 23.5 MT.” He said that “Taking it further, to 35 MT by 2020 to 2021 and to 50 MT by 2025 to 2026, principally through the brownfield (expansion) route will call for investment of INR 2 lakh crore. Our next two step expansion will synchronise with the country's vision to lift capacity to 300 MT from 96 MT now. This will present SAIL with the opportunity to induct path breaking technologies and make steel products for which we remain import dependent.” Mr Verma has floated a few ideas which, if these materialise, will put SAIL at the fore of 'frontier technology'-driven steelmakers. Due to our growing dependence on imports of metallurgical coal and compulsion to use iron ore fines in much larger quantities than at present, SAIL is according high priority to developing alternative iron-making technology, based on fines and non-coking coal. The new technology will recommend itself on grounds of economy of land use, environment friendliness, comparatively low cost of hot metal plant building and its blast-furnace route. As the process does not require sintering and coke making, emissions of sulphur oxide and nitrogen oxide will be greatly reduced and that of dust will largely be done away with. In the downstream will be mini flat mills, allowing continuous direct casting and rolling. Technology permitting, major compaction of mill operations has already been perfected by South Korean steelmaker Posco. Mr Verma, therefore, has to decide whether SAIL should go through the process of developing a technology already in existence or again attempt to partner Posco in a joint venture to make steel here, using the Finex. SAIL has already achieved high levels of land use efficiency in some areas by installing blast furnaces of 4,060 cubic meters each at three mills, by dismantling smaller ones and steel rolling. Incidentally, POSCO wants to employ Finex technology at its proposed Odisha venture. Source - Business Standard Get latest updates through Twitter - Follow @steelguru (www.steelguru.com)

India has no plan to restrict iron ore exports - Mr Vishnu Deo Sai


Parliament was informed that India does not have any plan to restrict iron ore exports as domestic output is sufficient to meet

industry requirements.

Mr Vishnu Deo Sai minister of State for Steel and Mines of India said that production of iron ore in the country is sufficient to

meet the requirement of the steel industry. Replying to another query on whether the steel industry of the country has been facing

iron ore shortfall.

He said that against production of 207.16 million tonnes iron ore in 2010 to 2011, domestic consumption of the key steel making

raw material was 107.22 MT.

In 2011 to 2012, while total consumption was 100.57 MT, total iron ore production was at 167.29 MT. India produced 135.85

MT iron ore in 2012 to 2013 and it consumed 103.59 MT. In the previous fiscal, production was 48 MT more than total




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consumption of 103.73 MT.

The minister said that government was not proposing to put restriction on export of iron ore. The government was also not

proposing to accord due priority to state run firms for mineral concessions.

There is no government dispensation route for major minerals like iron ore, manganese ore and chrome ore as is being done in

the case of coal to reserve mines for the Central PSUs.

Source - Economic Times

Get latest updates through Twitter - Follow @steelguru

(www.steelguru.com)

CBI issues notices to 252 ore export firms

(Follow @coalguru on Twitter for important updates)

The anti-corruption unit of the CBI has issued notices to 252 export companies over illegal export of iron ore from seven major

ports in three southern states, including Karnataka.

The companies have been ordered to provide all details regarding the ore exported between 2006 and 2010, from Mangalore and

Karwar in Karnataka, Vishakhapatnam and Krishnapatnam in Andhra Pradesh, Chennai and Ennore in Tamil Nadu.

Information has also been sought regarding ore imported.

The CBI had begun investigation following an order of the State government, based on the second report submitted by the

Lokayukta on illegal mining.

Most of the 252 companies belong to the mining barons.

Details have been sought on ore piled up in the stockyards of the ports, datewise details of ore stocked, information about the ship

that transported the ore, its destination, receipts, quantum of ore exported, besides details of the importers.

Information has also been sought on the lorries that brought the ore to the ports and other details about the transporters.

The export companies also have to submit details of the permits issued by the Mines and Geology department, money got from

those who received the consignment, bank statements, income tax documents and details on the managements of the export firms.

Data on the business done by the export firms with mining companies and money paid to them has also been sought.

Sources in the CBI said that more ore has been exported illegally from these ports than from the Belekeri port near Karwar.

It said that as per the Customs department documents, in these four years, 2.98 crore tonnes of ore in excess of the permits by the

Mines and Geology department was exported.

Source - DHNS

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(www.coalguru.com)

Mr VR Sharma to join Abul Khair Group of Bangladesh


It is learnt that Mr VR Sharma former Deputy MD & CEO Steel & Synthesis Fuel Business of Jindal Steel & Power Limited is

joining Abul Khair Group of Bangladesh as Group CEO (Steel & Power Business).

Abul Khair is one of the largest business group of Bangladesh and owns largest steel manufacturing capacity in the country.


http://www.coalguru.com/



SRMA


www.sram.co.in

Current capacity

Abul Khair Steel currently has 2 million tonnes steel making capacity, the entire steel melt shop with billet caster is supplied by

Danieli Italy. The shop consists 2x 90 tonnes EAF'S, 2 Ladel Furnaces, 6 strand Billet caster and a 700,000 tonnes per annum

rebar mill. Abul Khair Steel also has a 600,000 tonnes per year Cold Rolling, Galvanizing and Color coating capacity. It is in the

process of adding 400,000 tons per year of CR, Galvanizing and Galvalum lines in Bangladesh to take the over all flat products

capacity to 1 million tonnes per year.

Abul Khair Steel has ambitious plans to transform steel sector in Bangladesh.

Phase 1

One Blast Furnace / DRI based

2.00 million tonnes per annum additional Steel melt shop with a CSP (Compact Strip Mill) for the production of much needed hot

rolled coils.

The group is also wor ing on a proposed old Rolling, Galvani ing, Galvalume, and olor oating facility in M A West

Africa n countries.

Phase 2

Gas based DRI Plant in MENA / Bangladesh to meet out Metallics requirements. They are also working on a 300 MW Power

plant.

Mr VR Sharma is an Engineer with MBA having experience of over 31 years.

14 years with Bhushan Steel Group (BSL + BPSL)

4 years with Ispat Industries Ltd

3 years with Lloyd Steel Group

4+ years with Jindal Steel & Power Limited

7 years of Overseas with Ministry of Heavy industries Govt. of Libya and in Europe.

Mr V R Sharma is a renowned Steel technocrat and presently holding below positions in the steel and metallurgy sector.

1. Co Chairman of Metals + Metallurgy chapter of CII

2. hairman , Sponge iron manufacturers Association

3. hairman, India Lead Zinc Development Association

. ice hairman, American Society of Steel Technology of SA (AIST)

During his last 4 years tenure with JSPL, the Raigarh plant reached to 100% capacity utilization of 3.00+ mtpy, Angul plant of

JSPL commissioned successfully a 250 ton EAF / Steel Melt shop and a oal gasification plant first time in the world to supply

synthesis gas to DRI module. S L Angul also commissioned a widest plate mill in the country meter wide . indal shadeed ,

Oman also commissioned a 2.00 mtpy steel melt shop during his tenure.

Source - Strategic research Institute, Steel Guru

Get latest updates through Twitter - Follow @steelguru

(www.steelguru.com)

External Links http://www.jpcindiansteel.nic.in

http://steel.gov.in

http://www.worldsteel.org

http://www.ibef.org/industry/steel.aspx

http://www.cci.gov.in/images/media/completed/Indicussteel_20090420151842.pdf

TOP


http://www.jpcindiansteel.nic.in/

http://steel.gov.in/

http://www.worldsteel.org/

http://www.ibef.org/industry/steel.aspx

http://www.cci.gov.in/images/media/completed/Indicussteel_20090420151842.pdf

steel re-rolling mills association of india · page 3 of 14 21st issue steel re rolling mills...

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