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.
