Ministry of Steel -Review 2016

Steel is a strategic sector for any major developing and developed economy.  India is the 3^rd largest Steel producer globally and is likely to be the 2^nd largest Steel producer in a few years.  The sector contributes about 2% to the country’s GDP.Over the last few years, the Steel sector has been adversely impacted by the global steel glut which resulted in predatory pricing and a surge in steel imports into the country. However, on account of timely intervention by the Government and industry through various trade related measures like anti-dumping and safeguards as well as other policy initiatives, the impact of the global glut were significantly mitigated. The Government has been proactive in ensuring adequate raw material availability at reasonable prices and explored ways of reducing input, logistic and infrastructure cost of Steel production.  The Government is also working on ways to reduce the financial stress in the Steel sector by reducing imports, increasing exports as well as examining strategies of increasing steel demand. As a result of various steps taken, Steel imports have declined by 38.28%  between April-November, 2016 while exports have increased by 59.96% during the same period. Overall Steel production also grew by 8.8% between April-November, 2016 compared to the same period last year.

Steel sector trends

 India is currently the world’s 3^rd largest producer of crude steel against its 8^th position in 2003 and is expected to become the 2^ndlargest producer of crude steel in the world soon.India is currently also the world’s largest producer of direct reduced iron (DRI) or sponge iron, a status it has maintained every year since 2003.The country was also the 3^rd largest consumer of finished steel in the world in 2015 (preceded by China and the USA) and is expected to maintain the said status for 2016 also.The domestic steel sector contributes around 2% of the country’s GDP and employs over 6 lakh people.

Production, consumption and demand of steelThe per capita consumption of total finished steel in the country has risen from 58 kg in 2011-12 to 63 kg in 2015-16.Crude steel capacity in the country stood at 121.97 million ones in 2015-16 (source: JPC) while production of crude steel stood at 89.79 mt during the same year.India has been a net importer of total finished steel every year since 2007-08 with the exception of 2013-14.

MAJOR INITIATIVES AND ACHIEVEMENTS

   The Steel and Steel Products (Quality Control) Order, 2015 issued on 18^th December, 2015 had 15 steel (flat and long) products under the mandatory certification marks scheme of BIS. This order was amended to facilitate the domestic and international steel industry to align their products processes in line with the requirements of steel quality control order and also to obtain licenses from BIS to enable them to supply the certified steel products with Standard Marks of BIS. The first amendment order was accordingly issued on 17^th March, 2016 to allow six months additional time in respect of 7 out of 15 products covered in the original order simultaneously enforcing the order on remaining 8 products w.e.f. March 2016. The second amendment order was issued on 16^th September,2016 to allow further 3 months’ time i.e. upto 18^th December,2016 for implementation of the order in respect of the remaining 7 products.

 To provide level playing field to the domestic steel producers, Government has extended Minimum Import Price (MIP) on 19 steel products till 4^th February 2017.

   Safeguard duty on HR coils of 20% notified in September 2015 provisionally and final notification issued for the same in March 2016 extending 20% Safeguard duty upto September,2016. Thereafter phased reduction to 18% (till March,2017), 15% (till September,2017) and 10% by March,2018.

   Provisional Anti-Dumping duty notified on import of flat products (Hot Rolled & Cold Rolled) and on Wire Rods from China, Japan, Korea, Russia, Brazil, Indonesia & Ukraine.

   Steel Authority of India Ltd has undertaken Modernisation & Expansion of its integrated steel plants at Bhilai, Bokaro, Rourkela, Durgapur & Burnpur and special steel plant at Salem. The crude steel capacity is being enhanced from 12.8 Million tonne to 21.4 million tonne per annum. The indicative investment is about ₹62,000 crore. Additionally, approximately ₹10,000 crore has been earmarked for Modernisation and Expansion of SAIL Mines. The Facilities under Modernisation and Expansion of Salem, Rourkela, IISCO, Bokaro and Durgapur Steel Plants have been completed.

   At Bhilai Steel Plant, some of the facilities such as New Coke Oven Battery No.11, 2^nd Sinter Machine in Sinter Plant-3, Ore Handling Plant Part-A, Universal Rail Mill along with Rail Welding Lines and Oxygen Plant on BOO basis have been completed. The balance facilities are under various stages of execution and efforts are being made to complete the balance facilities progressively by 2016-17.

   Ultra Mega Steel Project: With the aim to develop large capacity mega steel projects in the country, which would help India in achieving the capacity growth of 300 million ones of crude steel by 2025-26, Ministry of Steel has evolved a concept of developing Ultra Mega Steel Plants. SAIL is participating for setting up of an Ultra Mega Steel Plant of capacity (3+3) or (4+2) MTPA (million ones per annum) in Bastar, Chhattisgarh. An MoU to this effect was signed between SAIL, NMDC, MoS & GoCG in May 2015 at Dantewada in the presence of Hon’ble Prime Minister. Definitive Agreements among the parties have been signed and identification of land is in progress. Process for Incorporation of the Steel SPV for Chhattisgarh has been completed.

   Development of Rowghat – Jagdalpur Rail Corridor in the State of Chhattisgarh: With the aim of bringing about greater socio-economic development of the backward areas of Bastar region in Chhattisgarh and to further the industrial progress and mining activities of the region, an MOU was signed amongst SAIL, NMDC, IRCON and GoCG in May 2015 for development of a rail corridor from Rowghat to Jagdalpur. This rail corridor shall be used for both freight and passenger services in the Southern part of Chhattisgarh. A new Joint Venture Company under the name “Bastar Railway Private Limited” has been incorporated in May’2016, for implementation of the project. The survey work & feasibility study for Railway line is being undertaken by IRCON.

 SAIL RITES Bengal Wagon Industry Pvt. Ltd. (SRBWIPL): SRBWIPL, a JV of SAIL and RITES, for manufacture and supply of 1200 wagons and rehabilitation of 300 wagons per annum to Railways has started commercial operations at Kulti, West Bengal.  Assured Offtake Agreements (AOTAs), one for manufacture of new wagons and another for Rehabilitation of in-service wagons have been signed between Railways and the JV Company and orders have been placed on the JVC by Railways.

Cabinet nod for sale of surplus land of four Pharmaceutical PSUs

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the sale of surplus land of Hindustan Antibiotics Limited (HAL), Indian Drugs & Pharmaceuticals Limited (IDPL), Rajasthan Drugs & Pharmaceuticals Limited (RDPL) and Bengal Chemicals & Pharmaceuticals Limited (BCPL), as would be required, to meet their outstanding liabilities. In this way, the national assets would be utilized in the best national interest.

 The sale would be through open competitive bidding to government agencies and the outstanding liabilities will be met from the sale proceeds. Voluntary Retirement Scheme (VRS) / Voluntary Separation Scheme (VSS) will also be implemented in these Public Sector Undertakings.

The remaining part of the land will be managed in accordance with the guidelines of the Department of Investment & Public Assets Management (DIPAM) and Department of Public Enterprises (DPE).

After meeting the liabilities, steps will be taken to close IDPL and RDPL. The option of strategic sale will be explored for HAL and BCPL. The Department of Pharmaceuticals, the administrative department for these undertakings, will take time bound follow-up action.

Textile industry performance in 2016

The Ministry of Textiles rolled out a special package of measures to support the apparel sector and enable it to improve its global competitiveness. Jobs for 1 crore people, mostly women; US$ 30 bn. in exports; and investment worth Rs. 74,000 crores – all in three years; these are the expected outcomes of the special package, approved by the Union Cabinet, on June 22, 2016.

The package is a strategic decision that would strengthen and empower the Indian textile and apparel sector by improving its cost competitiveness in the global market. The measures assume significance due also to its potential for social transformation through women empowerment; since 70% of the workforce in the garment industry are women, majority of the new jobs created are likely to go to women.

The special package includes a slew of labour-friendly measures that would promote employment generation, economies of scale and boost exports. 

The salient features of the package are:

·         Employee Provident Fund Scheme Reforms: Govt. of India will bear the entire employer’s contribution of 12% under the Employers Provident Fund Scheme, for new employees of garment industry earning less than Rs. 15,000 per month, for the first three years. Further, EPF will be made optional for employees earning less than Rs. 15,000 per month.

·         Increasing overtime caps: Overtime hours for workers not to exceed 8 hours per week in line with ILO norms.

·         Introduction of fixed term employment: Considering the seasonal nature of the industry, fixed term employment will be introduced for the garment sector.

·         Additional incentives under ATUFS: The subsidy provided to garmenting units, under Amended-TUFS, is being increased from 15% to 25%, providing a boost to employment generation.

·         Enhanced duty drawback coverage: In a first-of-its-kind move, a new scheme will be introduced to refund the state levies which were not refunded so far. Drawback at All Industries Rate will be given for domestic duty paid inputs even when fabrics are imported under Advance Authorization Scheme.

·         Enhancing scope of Section 80JJAA of Income Tax Act: Looking at the seasonal nature of garment industry, the provision of 240 days under Section 80JJAA of Income Tax Act would be relaxed to 150 days for garment industry.

H5 N1 Strain of Avian Influenza Virus

Centre Confirms of H5 N1 Strain of Avian Influenza Virus in Village Keranga of District Khordha of Odisha

The Department of Animal Husbandry, Dairying and Fishries, Ministry of Agriculture & Farmers Welfare has informed the Government of Odisha regarding the confirmation of  H5 N1 strain of Avian Influenza virus in village Keranga of District Khordha of Odisha. The samples from the said epicenter were sent to the National Institute of High Security Animal Diseases (NIHSAD), Bhopal who confirmed on 25.12.2016 that the aforesaid samples were found positive in RT-PCR and Real time RT-PCR for H5 N1 strain of Avian Influenza virus.

 State was intimated of the positive results on 25.12.2016. The State was requested to carry out the control and containment operations as per ‘Action Plan of Animal Husbandry for Preparedness, Control and Containment of Avian Influenza (2015)’ which was circulated to the States by the Government of India in March, 2015. It is also available on Department website (www.dahd.nic.in) under link: Animal Health-Bird Flu. Therefore, control and containment measures as per above Action Plan on Avian Influenza needs to be carried out by the State.

          The Ministry of Health and Family Welfare, Government of India was also intimated in the matter.

      Necessary actions as contained in the Action Plan of Animal Husbandry referred to above (especially under Part III) are to be completed immediately by the State Government viz: declaration of infected and surveillance areas, restricting access to the infected premises; destruction of birds; disposal of dead birds and infected materials;   clean-up and disinfection followed by sealing of the premises and issue of sanitization certificate; post operations surveillance; imposition of legislative measures etc. along with necessary measures laid down in the Contingency Plan (2005) of the Ministry of Health and Family Welfare, Government of India.

              The details of epicenter are given below:-

S. No.	Village/ Block	District
1.	Keranga	Khordha

  1      In addition to the culling strategy mentioned above, surveillance will be carried out over a radius up to 10 kilometers from the epicenter.

 2   A daily report on the control and containment operations may please be furnished to this Department by 10 a.m.

3.     International Organization, i.e. OIE, will be notified by the Government of India at its level.

4.   Surveillance throughout the State may be intensified to monitor further spread of infection.

I & B 2016 Report

·         Annual Renewal Process for existing TV Channels was simplified to promote Ease of Doing Business

·         New Print Media policy announced to increase Transparency & Accountability in release of Government Ads through DAVP

·         I&B Ministry promotes healthy development of cinema as a medium of communication through various film festivals

·         Ministry to formulate National Information & Communication Policy in consultation with States

·         Akashwani Maitree channel launched for promoting & preserving composite Bengali culture

Minister for Information & Broadcasting, Shri Venkaiah Naidu announced various initiatives concerning different sectors at the concluding session of the 28^thSIMCON which was organized by Ministry of I&B after a gap of 7 years. Shri Naidu announced a cash component of Rs. 1 Crore in the Most Film Friendly State Award to promote India as a Filming destination. In a major push to Community radio Movement in the Country, I&B Minister announced increased subsidy for setting up of Community Radio Stations from 50 % to 90% in the North Eastern States and 75% in other States, subject to a maximum limit of Rs. 7.5 lakhs. He also mentioned that the Ministry would be formulating a National Information & Communication Policy in consultation with States.

Ministry of I&B organized a 2 day State Information Ministers Conference (SIMCON) in December, 2016 to promote the vision of One Nation & Cooperative Federalism. The spirit & philosophy of Cooperative Federalism entails every state as an equal partner and stakeholder in the Nation’s development process. The interactive forum involving States was revived after a gap of 7 years, keeping in mind the importance of Communication in Governance. The theme of the conference was Reform, Perform and Transform: A New Dimension of Communication.

 The initiatives of Ministry in different sectors are mentioned below:  

Broadcast Sector

·         Simplification of Annual Renewal process for existing TV channels as part of “Ease of Doing Business”    Broadcasters who have been given the permission for Uplinking or Downlinking can continue their operations by simply paying the annual permission fee upto 60 days before the due date, which by itself will be treated as permission for continuation of the channel for a further period of one year.

·         A total of 170 channels have been given licences from Jun 2014 till Dec 2016. Of these, 25 licences are given to News channels and 145 licences have been to non-news channels.

·      Increased reach of FM Radio all over India- FM Phase 3 auctions first and second batch completed.  The auctions for the second batch were held recently for 266 channels in 92 cities.Digitization of Cable TV to bring the entire country under Digital Addressable System.The deadline for implementation of Phase III of digitization was 31st December, 2015 while for Phase IV it is by 31st December, 2016. Recently Ministry has extended the cutoff date for Phase IV to 31^st March, 2017.  Akashvani Maitree:  An exclusive service for Bangladesh and Bengali diaspora launched by All India Radio. Baluchi Multimedia website and Mobile App for greater people to people contact  also launche

     Boost to Community Radio movement in the Country: In a major push to Community Radio movement in the country, Ministry has increased the subsidy for setting up of Community Radio Stations from 50 % to 90% in the North Eastern States and 75% in other States, subject to a maximum limit of Rs. 7.5 lakhs.

      Swachhta Samachar: Special 5 minutes Bulletin on Swachhta has been started on allmweekdays. The Bulletin includes important news stories, people’s initiative and feature stories related to Swachh Bharat Abhiyan along with a Swachhta Tip.

Film Sector

·         Film Promotion Fund

o   To provide financial assistance for promotional activities to the films which would be selected in any competition section of an International Film Festival or being India’s official nomination to the Academy Awards under Foreign Film Category

·         Film Facilitation Office (FFO)

o   Single window clearance to facilitate film shootings by foreign film makers in India.

o   FFO units set up under NFDC premises in November 2015 at Mumbai, Delhi, Chennai and Kolkata. 66 foreign films given permissions in 2015-16

·      Swachh Bharat Short Film Festival organized by the NFDC on behalf of the Ministry, has received over 4000 entries from across the country in various Indian languages on the theme of the Swachh Bharat Mission. The key objective of the Festival was to generate awareness, inspire people and include them as stakeholders in the Swachh Bharat Abhiyan. Top 20 films selected were felicitated.

·      The Ministry has utilized the platform of Film Festivals to promote India’s endeavour of being a Filming Destination and Soft Power. Various Country specific Film Festivals have been organised to promote the possibility of collaboration in the Films Sector. Film Festivals like the

o   Iranian Film Festival - 14 films of the acclaimed and award winning film makers from Iran were screened.

o   European Union Film Festival – A total of 23 movies from the European Union countries were showcased.

o   The first ever BRICS Film Festival was held in Delhi – Twenty movies, four each from the five participating countries were selected for the screening competition.

·      On the domestic policy front the Ministry organised Swachh Bharat Short Film Festival, Children’s Film Festival and the Patriotic Film Festival with theme Azaadi 70 Saal, Yaad Karo Qurbani

·      Strengthening of the institutions to promote healthy development of cinema as a medium of communication through film festivals (Patriotic & Children Film Festivals) across the nation.

·      Shyam Benegal Committee constituted for holistic interpretation of the provisions of the Cinematograph Act/ Rules has submitted its recommendations to the Ministry which are expected to provide a holistic framework.

·         Ministry has also introduced a cash component of Rs. 1 Crore in the Most Film Friendly State Award to promote India as a Filming destination.

·         National Film Heritage Mission (NFHM):  It is a new Plan Scheme to restore, digitize and archive films and filmic material through National Film Archive of India. National Film Archives of India in one of its rare discovery, NFAI acquired 20.43 minutes of the Indian Silent Film Bilwamangal (1919), thanks to the wonderful cooperation of the Cinematheque Francaise. It is after 21 years that a silent film has entered NFAI vaults.

Information Sector

·         New Print Media Advertisement Policy for DAVP

o   Objective is to promote transparency and accountability in issuing of Government advertisements in print media and weeding out ghost/irregular newspapers.

o   Policy introduces a New Marking System and Circulation Verification Procedure for empanelment of Newspapers/Journals with DAVP

·         Three member committee to address the issues related to Content Regulation in Government Advertising constituted as per the directions of Hon’ble Supreme Court. The committee is chaired by Shri B.B. Tandon, Former Chief Election Commissioner of India.

·         New Business Policy for Publication Division: The objective to streamline business practices in line with the contemporary trends prevailing in publications industry. The policy promotes online readership by pricing the digital version of the publication at 75% the price of printed version. It acknowledges the growing prospects of e-commerce and promotes sale of e- books of the division through online platforms.

 360 degree Multimedia Campaigns to give wide publicity to the schemes launched by the Government. The activities range from holding of Press conferences, telecast/broadcast of special programmes on DD and AIR with experts, Multimedia Exhibitions, social media campaigns using Infographics, animations, graphic plates, short videos, live streaming of events /conferences. Some of these initiatives include:  International Yoga Day, Swachh Bharat , Make in India, Skill India, Digital India, Rashtriya Ekta Diwas

  Peoples` participation in Government Advertising through Crowd Sourcing: The advertisement for important events being designed on the crowd sourcing model. An online contest was also organized by Social Media Cell of the Ministry as a part of 67^th Republic Day celebrations.

  Publications Division has released the E-version of the India/ Bharat-2016. Online paymentmand subscription services for popular journals and Employment News of Publications Division through Bharat Kosh Portal of Ministry of Finance.

   Release of books on Rashtrapati Bhavan published by the Publications Division. Some of the books are “Around India’s First Table: Dining and Entertaining at Rashtrapati Bhavan”, The Arts and Interiors of Rashtrapati Bhavan: Lutyens and Beyond”, “Discover the Magnificent World of Rashtrapati Bhavan”, “A Work of Beauty: The Architecture and Landscape of Rashtrapati Bhavan”, “First Garden of the Republic: Nature in the President’s Estate” among others.

     A book on Courts of India- Past to Present published by the Publications Division under the guidance of the Hon’ble Supreme Court was also released.

    Indian Institute of Mass Communication  The Diploma course in Urdu Journalism upgraded to the level of PG Diploma in Urdu Journalism of nine months duration from the current academic session i.e. 2016-17.

·         Vartalap / Regional Editors Conference   As a new initiative, PIB Regional Units are organizing “Vartalap” in various regions across the country with regional media to interact &create awareness about the new developmental initiatives/schemes of the government. Regional Editors Conferences were organized in Jaipur, Chennai & Chandigarh.