May 2007 - SIMA

More documents

Recommendations

Info

CHAIRMAN P.R. DHARIWAL VICE-CHAIRMAN N.K. PATNAIK EXECUTIVE DIRECTOR S.S. BHATNAGAR GOVERNING BODY P.R. Dhariwal N.K. Patnaik Suresh Thawani Vikrant Gujral R.H. Dalmia G.K. Chhanghani Manoj Agarwal Narayan Tekriwal S. Subramanian Anil Ahuja S.S. Bhatnagar REGIONAL DIRECTORS Prakash Tatia G.K. Chhanghani Nirmal Aggarwal Surender Dalmia M.K. Sheshadri Sunil Garg EDITORIAL The Indian economy is on the fulcrum of an ever increasing growth. It grew by an impressive 9.2% during the second quarter of 2006-07 taking the gross domestic product growth to an impressive 9.1% in the first half. With robust growth and government focus on construction and infrastructure projects, steel requirement has grown substantially. The modest target of steel production of 65 Million Tons by 2010-11 has been revised by the government agencies and steel producers to 80 Million Tons. The Indian steel production by 2020 as per the newly revised estimates is expected to reach 180 – 200 Million Tons by 2020. India again emerged as world’s largest producer of sponge iron for the 5TH consecutive year with record production of 14.74 Million Tons for the calendar year 2006. Gas based units have shown a growth of 7% due gas supply limitations, whereas Coal based units had a significant growth of 32.96% giving overall industry growth of 22.99%. The difficult availability of steel melting scrap and limited reserves of coking coal in addition to their unprecedented rising prices makes future steel making heavily dependant on the sponge iron industry ,as it has to meet the fast growing needs of quality metallics by the steel sector. In this scenario a promising future beckons the sponge iron manufacturers, who have been charting ambitious new projects and expansion plans. But before these plans materialize, everyone appears to be focused on ensuring the security of vital inputs namely; iron ore, non-coking coal and natural gas. The major concern is to get consistent iron ore supplies, long term linkages /contracts of superior quality sponge iron grade non-coking coal and at least committed supplies of natural gas for better utilization of installed capacities. To avoid a situation whereby capacity creations lags behind demand growth, the government initiatives and policies have to be proactive. We need to improve our infrastructure namely; roads, ports, airports, railways, highways etc. We are also not proceeding fast enough in building up the power sector. An improved and efficient Railways will also reduce tariff. Railway freight per 1000 KM per ton is nearly three times higher for steel and related sector in India than in China and Korea. An integrated approach is required to ensure that the sponge iron industry grows to its full potential and meets the challenges ahead, to meet the galloping demand of quality metaliks by steel sector. On the whole the Indian Sponge Iron Sector has all signs of a vibrant and positive industry. It is our constant endeavour at SIMA to give you a comprehensive picture and analysis of the developments that are taking place. SIMA has also improved its international profile with visits to Indonesia, Egypt and Muscat. Interaction, commitment , support and co-operation of the members are our biggest strengths as we move to greater successes every year. S.S. BHATNAGAR
CHAIRMAN’S COMMUNIQUE With an aim of preserving precious iron ore for the use by Indigenous steel mills, Finance Bill 2007 has introduced levy of export duty of Rs. 300/- per ton on the exports of iron ore. This must have cheered the members of SIMA as way back in 2003, through a detailed presentation on iron ore scenario in SIMA AGM, in the presence of the then Hon’ble Minister of Steel Mr. B K Tripathi, I had stressed that unless Govt takes measures to regulate the exports of iron ore, India might need to start import of iron ore. Since despite this measure, export of iron ore has shown increasing trend, we hope that Government of India would take a decision soon either to curb or ban exports of iron ore: as ore export s an export without any value addition and thus eating away possible inflow of forex into India and job opportunities in the country. Iron ore needs to be used wisely as an anchor for growth and development of the domestic steel industry. In fact iron ore is the prime reason why we have multinational corporation wanting to get into India. We have already proposed to the government to phase out iron ore export in progressive manner by putting cap on iron ore exports at current level. The reduction in iron ore export by 15% every year and finally export to be made zero by year 2011-12 by which time the demand is expected to match the level of production of iron ore in the country. Imposition of Rs.300/- per ton is only a symbolic representation and possibly the first step towards conservation and security of our finite reserves of iron ore. Over the years coal based sponge iron producers have been facing acute shortage in supply of quality and quantity of non coking coal for the manufacture of sponge iron mainly due to such policy of the Government which makes the middlemen (traders) more powerful distributor and thus affecting the end consumer. Meanwhile our Vice Chairman Mr. N K Patnaik alongwith OSIMA Chairman Mr. G S Agrawal & representatives of coal based units, presented comments and suggestions, to be implemented in the proposed new Coal Distribution policy, to the newly constituted Committee chaired by Secretary Coal, which has been set up under the directives of Hon’ble Supreme Court, to evolve a viable and fair Coal Distribution policy. This is a good step emanating from Supreme Court directive and we hope our suggestions and comments will find place in the new policy thus bringing relief to the coal based units. While the Govt of India has recognized our association’s value and takes inputs at the time of formulating a policy, our international exposures, viz admission of foreign members, foreign visits improve vision and sharing of technological expertise have been of immense use to the members. It is heartening to note that our association took a strong delegation recently to Muscat to attend Arab Steel Summit 2007 organised by Arab Iron & Steel Union(AISU). I hope the new journal reaches your desk by the time we meet again on 10 th May 2007 for Annual General Meeting, in Delhi. Wishing you all the best. P.R. DHARIWAL MAY-2007/1
Page 4 and 5: Introduction SOLUTIONS FOR INDIAN S
Page 6 and 7: Figure 3 shows the S-L FBDB gasifie
Page 8 and 9: Figure 5 FASTMET Plant at Nippon St
Page 10 and 11: CDM potential of waste gases from t
Page 12 and 13: Table - II Details of CERs Issued i
Page 14 and 15: in Secondary steel making process.
Page 16 and 17: Pricing of Natural Gas � Under th
Page 18 and 19: MONNET - FUELING INDIA TO GROWTH Mr
Page 20 and 21: VISIT OF SIMA DELEGATION TO MUSCAT,
Page 22 and 23: MAY-2007/20
Page 24 and 25: SPONGE IRON INDUSTRY IN ORISSA Back
Page 26 and 27: MAY-2007/24
Page 28 and 29: Suresh Thawani becomes the new Mana
Page 30 and 31: MAY-2007/28
Page 32 and 33: S K SARAWAGI & COMPANY PRIVATE LIMI
Page 34 and 35: area of the DRI formed should be mi
Page 36 and 37: • Dust is generated during handli
Page 38: additions and a decrease in electro

May 2007 - SIMA

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?