Jamshedpur, August 16: Tata Steel MD TV Narendran on Saturday said that the domestic steel industry is facing challenges from China, government should sort out internal challenges.
Narendran said, “If government can overcome the issue pertaining to availability of raw materials and import duty then we can perform much better because demand for steel is always increasing”.
Tata Steel MD after unfurling the National flag inside the company works in Jamshedpur on Saturday on the occasion of 69th Independence Day said that it’s not that Indian producers are not competitive with world players as “our five/six steel producers feature in the top steel producers of the world even now”.
Talking about the challenges from China, Narendran said that China is producing 82.5 crore tonnes of steel against their demand of 72.5 crore tonnes. It means China is producing 10 crore tonnes extra than their demand. The current total capacity of India is 8 to 8.5 crore tonnes. China is importing 20-30 lakh tonnes of steel which is spoiling our market.
The central government has taken various initiatives in this regard and more steps are needed to be taken to attract investment, he suggested, while focusing on the need to implement projects in sectors such as infrastructure and automobile to increase steel consumption and create job opportunities.
The steel industry is a very difficult sector due to high capital cost, transport cost, high rate of interest but it is this industry that competes with world players, Narendran said.