Steel Re-Rolling Mills Association of 29th Issue Steel Re Rolling Mills Association of India visit Page 3 SRMA STEEL NEWSLETTER SRMA Steel Re Rolling Mills Association of India SRMA Steel News is a division of Steel Re

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<ul><li><p>[29th Issue Steel Re Rolling Mills Association of India visit Page 2 </p><p>SRMA STEEL NEWSLETTER </p><p>SRMA </p><p>Steel Re Rolling Mills Association of India </p><p> </p><p>Steel Re-Rolling Mills Association of India Email : </p><p>Sl. No, Name </p><p>1. Shri B.M. Beriwala, Chairman </p><p>2. Shri Jagmel Singh Matharoo, Vice Chairman </p><p>3. Shri Ramesh Kumar Jain, Treasurer </p><p>4. Shri Sanjay Jain Committee Member </p><p>5. Shri Kailash Goel </p><p>6. Shri Om Prakash Agarwal </p><p>7. Shri Sushil Sharda </p><p>8. Shri Sandip Agarwal </p><p>9. Shri S S Sanganeria </p><p>10. Shri Sanjay Surekha </p><p>11. Shri R P Agarwal </p><p>12. Shri S S Bagaria </p><p>14. Shri Girish Agarwal </p><p>15. Shri Goutam Khanna </p><p>16. Shri Suresh Bansal </p><p>17. Shri Rajiv Jaiodia </p><p>18. Shri Bhusan Agarwal </p><p>19. Shri Mahesh Agarwal </p><p>20. Shri Sita Ram Gupta </p><p>21. Shri G P Agarwal </p><p>22. Shri Suresh Goyal </p><p>23. Shri Hari Mohan Beriwala </p><p>24. Shri Sitaram Agarwal </p><p>25. Shri Sonal Mittal </p><p>26. Shri Avinash Bagla </p><p>27. Shri Shankar Lal Agarwal </p><p>28. Shri Dipak Agarwal </p><p>Sp. Invitee </p><p>29. Shri Vivek Adukia </p><p></p></li><li><p>[29th Issue Steel Re Rolling Mills Association of India visit Page 3 </p><p>SRMA STEEL NEWSLETTER </p><p>SRMA </p><p>Steel Re Rolling Mills Association of India </p><p> </p><p>SRMA Steel News is a division of Steel Re-Rolling Mills Association of India and takes due </p><p>care in preparing this news. Information has been obtained by SRMA from sources, which it </p><p>considers authentic. However, SRMA does not guarantee the accuracy, adequacy or </p><p>completeness of any information and is not responsible for any errors or omissions or for the </p><p>results obtained from the use of such information. SRMA is not liable for investment decisions, </p><p>which may be based on the views expressed in the News. SRMA especially states that it has no </p><p>financial liability whatsoever to the subscribers/users/transmitters/distributors of this News. And </p><p>no part of this news may be published/reproduced in any form without SRMAs prior written </p><p>approval. </p></li><li><p>[29th Issue Steel Re Rolling Mills Association of India visit Page 4 </p><p>SRMA STEEL NEWSLETTER </p><p>SRMA </p><p>Steel Re Rolling Mills Association of India </p><p> </p><p> Executive Summary </p><p> Coal Scenario of India </p><p> Environment &amp; Safety </p><p> Indian Skilled Manpower Challenge and Vision of NSDC </p><p> Taxation (Circular/Notification) </p><p> Events </p><p> Latest Steel News </p><p>CONTENTS </p></li><li><p>[29th Issue Steel Re Rolling Mills Association of India visit Page 5 </p><p>SRMA STEEL NEWSLETTER </p><p>SRMA </p><p>Steel Re Rolling Mills Association of India </p><p> </p><p>No country can be politically and economically independent unless it is highly industrialized and has developed its </p><p>resources properly. Indias development were broadly incorporated in free Indias first Industrial Policy Resolution </p><p>adopted by the Constituent Assembly in 1948. The resolution officially accepted the principle of mixed economy. </p><p>Industries were divided into four categories. In the first category were strategic industries which were made the </p><p>monopoly of the Government. In the second category were six industries which included, among others, coal, iron </p><p>and steel. </p><p>It was decided that new units would be started exclusively by the government in the public sector without disturbing </p><p>the existing ones in the private sector. Eighteen industries, including heavy castings and forgings of iron and steel, </p><p>Ferro alloys and tool steel were covered by the third category and the rest of the industries by the fourth. In sum, the </p><p>government committed itself to the development of basic steel industry while the private sector was to benefit </p><p>through the establishment of downstream units which would use pig iron, billets, blooms and flat products to be </p><p>made by the public sector steel plants. </p><p>Many of the developed nations during their course of economic development had relied heavily on their domestic </p><p>steel industry to meet the requirement of faster industrial development and for building physical infrastructure. Even </p><p>though steel is a freely traded commodity, large scale dependence of a growing economy like India on imported </p><p>steel may make the economy vulnerable to uncertainty in global supply, export policies of different countries and </p><p>volatility in international prices. For India, the case for domestic production of steel is even stronger due to </p><p>indigenous availability of resources and a need to minimize strain on current account balance. In fact, the revealed </p><p>comparative advantages of labour and raw material have the potential of making India a leading exporter of steel in </p><p>the world. </p><p>The story of the modern steel industry began in the late 1850s and has really been going through major changes </p><p>since 1970. It has often been considered to be an indicator of a country's economic progress, due to steel's critical </p><p>role in infrastructural and overall economic development. There has been a massive increase in the demand for steel </p><p>since the turn of the millennium due to the economic boom of both China and India. World steel demand increased </p><p>during the early 2000's; at the same time, many Indian and Chinese steel companies have risen to notability. </p><p>Although China, as a whole, is both the largest steel producer and consumer. </p><p>The world steel industry peaked in 2007, when the steel-using sectors plunged and the construction industry used </p><p>50% of steel produced (the next highest usage was mechanical machinery &amp; metal products with about 15% each). </p><p>Although it deserves to be said that the slowdown was occurring already before the worldwide great recession that </p><p>started in 2008. Demand was weak in 3 of the 4 major steel countries and steel mills strongly reduced output. Heavy </p><p>cutbacks in construction caused falling prices (down about 40%) due to a sharply lowered demand. </p><p>It was observed that the industrys turnaround in late 2009 and continued to grow together with the global </p><p>economic recovery. World crude steel production went up from 851 megatons (Mt) in 2001 to 1,548 Mt in 2012-13. </p><p>This outperformed 2011 by almost 1.5%. Specifically, the U.S. steel sector will be dealing with excess capacity as </p><p>its most significant issue due to the continued growth in new steelmaking facilities. However, on a good note, global </p><p>steel demand is expected to improve gradually this year in comparison to 2012-13. In the United States, growth will </p><p>be supported by attempts to sustain the economy's momentum, an improving labor market, strong momentum in the </p><p>auto sector and recovery in construction markets. Increased demand should lead to improved profitability for 2014 </p><p>and 2015, driven by better utilization rates. European steel demand is likely to fall further this year before a mild </p><p>rebound takes hold in 2014. The big challenge for steelmakers in 2013 is to be cost competitive while maintaining </p><p>enterprise value. </p><p> TOP </p></li><li><p>[29th Issue Steel Re Rolling Mills Association of India visit Page 6 </p><p>SRMA STEEL NEWSLETTER </p><p>SRMA </p><p>Steel Re Rolling Mills Association of India </p><p> </p><p>Status of Coal Resources in India - As a result of regional, promotional and detailed </p><p>exploration by Geological Survey of India (GSI), Central Mine Planning &amp; Design </p><p>Institute Limited (CMPDI), Singareni Collieries Company Limited (SCCL), Mineral </p><p>Exploration Corporation India reached to 299 billion tonnes as on 1.4.2013. the estimates </p><p>of coal resources in the country during last 5 years are given below: </p><p>As on </p><p>Geological Resources of Coal </p><p>(in million tonnes) </p><p> Proved Indicated Inferred Total </p><p>1.4.2009 105820 123470 37920 267210 </p><p>1.4.2010 109798 130654 36358 276810 </p><p>1.4.2011 114002 137471 34389 285862 </p><p>1.4.2012 118145 142169 33182 293497 </p><p>1.4.2013 123182 142632 33100 298914 </p><p>Source : Provisional Coal Statistics 2012-13, Ministry of Coal </p><p>The details of type and category-wise coal resources of India as on 1.4.2013 are given in the table below: </p><p>Type-wise and Category-wise Coal Resources in India </p><p>(in million tonnes) </p><p>Type of Coal Proved Indicated Inferred Total </p><p>(A) Coking </p><p>- Prime Coking 4614 699 0 5313 </p><p>-Medium Coking 13269 11893 1879 27041 </p><p>-Semi-Coking 482 1003 222 1707 </p><p>Sub-Total Coking 18365 13595 2101 34061 </p><p>(B) Non-Coking </p><p>(including high </p><p>sulphur) </p><p>104816 129037 30999 264852 </p><p>Grand Total 123182 142632 33100 298914 </p><p>Source : Provisional Coal Statistics 2012-13, Ministry of Coal </p><p>Among all the states endowed with coal resources in the country, Jharkhand (80701 million tonnes mt) is the richest, </p><p>followed by Odisha (73710 mt) and Chhattisgarh (52169 mt), in terms of total inventory of geological resources of </p><p>coal as on 1.4.2013. the details of state-wise inventory of coal resources are provided in the table below: </p><p>State Wise Inventory of Geological Resources of Coal in India as on 1.4.2013 </p><p>State Coal Resources </p><p>(in million tonnes) </p><p>Proved Indicated Inferred Total </p><p>Andhra Pradesh 9604 9554 3049 22207 </p><p>Arunachal Pradesh 31 40 19 90 </p><p>Assam 465 46 3 514 </p><p>Bihar 0 0 160 160 </p><p>Chhattisgarh 14779 34107 3283 52169 </p><p>Jharkhand 41155 32986 6559 80701 </p><p>Madhya Pradesh 9818 12355 2889 25061 </p><p>Maharashtra 5667 3186 2110 10964 </p><p>Meghalaya 89 17 472 576 </p><p>Nagaland 9 0 307 315 </p><p>Odisha 27284 37110 9316 73710 </p></li><li><p>[29th Issue Steel Re Rolling Mills Association of India visit Page 7 </p><p>SRMA STEEL NEWSLETTER </p><p>SRMA </p><p>Steel Re Rolling Mills Association of India </p><p> </p><p>Sikkim 0 58 43 101 </p><p>Uttar Pradesh 884 178 0 1062 </p><p>West Bengal 13396 12995 4892 31283 </p><p>India 123182 142632 33101 298914 </p><p>Source : Provisional Coal Statistics 2012-13, Ministry of Coal </p><p>Coal Production </p><p>In the year 2012-13, the coal production in India reached 557.707 mt and registered an increase of 3.29 percent over </p><p>the last year. In case of lignite, the production increased from 42.332 mt to 46.598 mt registering an increase of </p><p>10.08 percent over the last year. </p><p>Coal Production (in million tonnes) </p><p>Year Quantity </p><p>2008-09 492.76 </p><p>2009-10 532.04 </p><p>2010-11 532.69 </p><p>2011-12 539.95 </p><p>2012-13 557.71 </p><p>Source : Provisional Coal Statistics 2012-13, Ministry of Coal; (P) Provisional </p><p>The year-wise, company wise growth in coal production in the country during the last five years is provided in the </p><p>table below: </p><p>Production of Coal by CIL ( &amp; subsidiaries) &amp; SCCL </p><p>(in million tonnes) </p><p>Source 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 </p><p>ECL 24.06 28.13 30.06 30.81 30.56 33.91 </p><p>BCCL 25.22 25.51 27.51 29.00 30.20 31.21 </p><p>CCL 44.15 43.24 47.08 47.52 48.00 48.06 </p><p>NCL 59.62 63.65 67.67 66.25 66.40 70.02 </p><p>WCL 43.51 44.70 45.74 43.65 43.11 42.29 </p><p>SECL 93.79 101.15 108.01 112.71 113.84 118.22 </p><p>MCL 88.01 96.34 104.08 100.28 103.12 107.89 </p><p>NEC 1.10 1.10 1.11 1.10 0.60 0.605 </p><p>CIL 379.46 403.73 431.26 431.32 435.83 452.211 </p><p>SCCL 40.60 44.55 50.43 51.33 52.21 53.19 </p><p>Others 36.94 44.48 51.31 50.41 51.90 52.31 </p><p>Total 457.00 492.76 533.00 533.06 539.94 557.71 </p><p>Source : Provisional Coal Statistics 2012-13, Ministry of Coal (P) Provisional </p><p>Demand and sector-wise supply : - There has been a continuous increase in the sector-wise as well as overall </p><p>demand for coal over the years. The demand for indigenous coking coal in the steel sector (including coke ovens and </p><p>cookeries) has risen from 16.45 million tonnes (mt) in 2009-10 to 22.30 mt (BE) in 2012-13 and that for imported </p><p>coking coal has risen from 24.69mt to 30mt (BE) in 2012-13. In the intermediate year of 2009-10, the demand for </p><p>indigenous coking coal dipped from 16.45 mt to 15.90 mt. This year also saw a sharp increase in the demand for </p><p>imported coking coal from the steel sector (13.4 percent on year-on-year basis) but the demand trends appear to have </p><p>stabilized in the consecutive years. In fact, as per estimates, the indigenous demand for coking coal by the domestic </p><p>steel sector has risen by 40 percent in the year 2012-13, on a year-on-year basis, whereas the corresponding demand </p><p>for imported coking coal by the sector appears to have stagnated at around 30 mt. </p><p>The non-coking coal demand by the Steel DR sector has also seen a substantial rise in demand in the year 2012-13, </p><p>as per available estimates. The non-coking coal demand which dipped by (7.8) percent on a year-on-year basis in </p><p>2011-12, rose sharply by 66 percent in 2012-13. The Steel DR sector is also the second largest consumer of non-</p></li><li><p>[29th Issue Steel Re Rolling Mills Association of India visit Page 8 </p><p>SRMA STEEL NEWSLETTER </p><p>SRMA </p><p>Steel Re Rolling Mills Association of India </p><p> </p><p>coking coal in the country, after the power sector. On the supply side, Coal India Ltd (CIL) achieved 99 percent in </p><p>terms of actual supply (465.178 mt) against its estimated supply of 470 mt. The total indigenous supply of coal was </p><p>to the tune of 570.23 mt (an achievement of 98.3 percent against estimates), of which 15.88 mt was comprised of </p><p>coking coal and the rest by non-coking coal. </p><p>Total imports of 137.56 mt raised the quantity of domestically available coal (coking+ non-coking) to 707.79mt, </p><p>against domestic demand of 772.84mt. Details of sector wise demand, supply and availability of coal in 2012-13 is </p><p>provided in the table below: </p><p>Sector-wise Domestic Demand, Supply and Availability for Coal in 2012-13 (P) </p><p>(in million) </p><p>Sector Demand </p><p>(BE) </p><p>Indigenous </p><p>Supply </p><p>(Actuals) </p><p>Import </p><p>(Actual) </p><p>Availability </p><p>(Actual) </p><p>Coking Coal </p><p>Steel/Coke Ovens and </p><p>cookeries (Indigenous) </p><p>22.3 15.88 15.88 </p><p>Import 30.00 - 32.56 32.56 </p><p>I. Sub-total Coking 52.30 15.88 32.56 48.44 </p><p>Non-Coking Coal </p><p>Power Utilities (Gen.Req.) 512.00 398.97 - 398.97 </p><p>Captive Power 43.00 45.32 - 45.32 </p><p>Steel DR 35.30 20.83 - 20.83 </p><p>Cement 30.24 13.55 - 13.55 </p><p>BRK &amp; Others 100.00 75.68 - 75.68 </p><p>II. Sub Total Non-Coking 720.54 554.35 105.00 659.35 </p><p>Grand Total I + II 772.84 570.23 137.56 707.79 </p><p>Source : Provisional Coal Statistics 2012-13, Ministry of Coal; (P) Provisional </p><p>Imports - As per the present Import Policy, coal can be freely imported (under Open General Licence) by the </p><p>consumers themselves, considering their needs and exercising their own commercial prudence. Coking coal is being </p><p>imported by Steel Authority of India Limited (SAIL) and other steel sector manufacturing units mainly to bridge the </p><p>gap between the requirement and indigenous availability and to improve the quality. Coal based power plants, </p><p>cement plants, cement plants, captive power plants, sponge iron plants, industrial consumers and coal traders import </p><p>non-coking coal. Coke is imported mainly by pig-iron manufacturers and iron and steel sector consumers using </p><p>mini-blast furnace. Details of import of coal and coal products during the last five years are as under :- </p><p>Coal Imports (in million tonnes) </p><p> 2008-09 2009-10 2010-11 2011-12 2012-13 </p><p>Coking Coal 21.08 24.69 19.48 31.80 32.557 </p><p>Non Coking Coal 37.92 48.57 49.43 71.05 105.002 </p><p>Coke 1.88 2.36 1.49 2.36 3.077 </p><p>Total Import 60.88 75.62 70.4 105.21 140.64 </p><p>Source : Provisional Coal Statistics 2012-13, Ministry of Coal </p><p>Currently while import duty on coking coal is ni...</p></li></ul>


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