India CSR News Network
NEW DELHI: Indian Steel Sector’s contribution to overall Gross Domestic Product of the country is nearly 2% during 2015-16.
The total exposure of steel industry is about Rs. 3.13 lakh crore out of which Gross Non Performing Assets is about Rs. 1.15 lakh crore. This works out to 36.94% of total loan outstanding as on March, 2016.
At the instance of Government, RBI has also recently reduced the overall policy rates which are expected to get translated into reduction in actual lending rates.
The RBI accorded a flexible refinancing repayment option, popularly known as 5:25 scheme for long-term infrastructure projects, including steel where total exposure of the bank is above Rs. 500 crores.
RBI has also brought in Strategic Debt Restructuring scheme to help debt ridden companies including steel companies. Further, in June 2016, RBI brought in another scheme called Scheme for Sustainable Structuring of Stressed Assets, also known as S4A scheme, with the same objective. The Government has taken a slew of measures to strengthen the positioning of the steel industry in the domestic market.
They include imposition of antidumping and safeguard duties on a range of steel products with the objective of eliminating/reducing low priced unfairly treaded steel from countries such as China which negatively impacted profitability of the domestic steel producers and simultaneous loss of market share. The Government has initiated simultaneously wide ranging investment plans in infrastructure which is expected to increase the demand for steel.
This information was given by the Minister of State in the Ministry of Mines Vishnu Deo Sai in reply to a question in Rajya Sabha on 16 Nov, 2016.
Picture: Jindal Steel & Power Ltd