Steel policy will help boost coking coal supply
The draft National Steel Policy aims at cutting dependence on imports.
The Union Ministry of Steel, headed by Chaudhary Birendra Singh, has come out with a draft National Steel Policy which aims at increasing supply of domestic coking coal in order to cut dependence on imports by half and setting an ambitious production target of building a capacity of 300 million tonnes per annum by 2030-31. India’s total capacity in 2015-16 was 122 MT.
India became the third largest producer of steel in 2015 and is now well on track to emerge as the second largest producer after China. At present, Japan is the second largest producer. There is significant potential for growth given the per capita steel consumption of 61 kg in India, compared to the world average of 208 kg. It is estimated that an investment of Rs 10 lakh crore would be required to achieve the 300 MT target.
The Ministry is in the process of seeking feedback on the policy from all the stakeholders and the public for which the last date is 23 January.
The draft policy recognises limited availability of metal- lurgical coal as a disadvantage for the steel sector. Due to shortage of domestic coking coal, pig iron producers in India have to significantly depend on import of coking coal. In this backdrop, the draft policy aims at achieving increased domestic availability of washed coking coal to reduce import dependence on coking coal by 50% by 2030-31.
The draft policy aims at increasing the per capita steel consumption to 160 kg by 2030-31 and encouraging the industry to be a world leader on energy and raw material efficient steel production, in a safe and sustainable manner.
In 2015, India was the only large economy in the world where steel demand showed a positive growth of 5.3%, compared to negative growth in China (- 5.4%) and Japan (-7%). Domestic production of steel increased by 10.5% in the April-December 2016 period, compared to the corresponding period last year.
According to a source, talks are going on with different ministries for introduction of a policy to make it mandatory to use Indian made steel for infrastructure and construction projects of the government. “The Ministry is also exploring new avenues for usage of steel like steel bridges, containers, water tanks etc. Besides, many steps have been taken by the Centre to provide a level playing field to Indian steel producers. The government has also curbed unfair trade practices and dumping by other countries. As a result, imports have come down substantially,” he said. Bangalore has emerged as hub for online shopping, leaving behind Mumbai and Delhi.
According to a 2016 study conducted by Resurgent India for trade body Assocham, 69% of its population bought daily routine products through online shopping, which is expected to go to 75% this year for apparel, gift items, magazines, home tools, toys, jewelry, beauty products and sporting good categories.
Overall, in India, 69 million consumers purchased online and this number is likely to cross 100 million by 2017, the study notes, with the rise of digital natives, better infrastructure in terms of logistics, broadband and internet-ready devices to fuel the demand in e-commerce.
As per the study, Mumbai ranks second while Delhi ranks third as far as choosing online shopping is concerned. Mumbai’s share was 65%, which might go up to 70% for electronic gadgets, accessories, apparel, gifts, computer peripherals, movie tickets, home appliances etc., whereas in Delhi 61% population chose to buy daily routine products through eshopping, which will go to 65–68% by the year end.
The study says Indian e-retail looks quite promising which is up from $3.59 billion in 2013 to $5.30 billion in 2014, and by the end of 2018, it is expected to touch $17.52 billion. 2017 will see large scale growth in the e-commerce sector with increased participation from people across the country, notes the study, adding this industry will drive more employment opportunities and contribute towards creating more entrepreneurs through the e-commerce market place model.
The report also adds that demonetisation and a reduction in cash transaction, along with improvement of netbanking facilities, can be opportunities for the Indian e-commerce sector.
According to the study, mobile commerce will become more important this year as most of the companies are shifting to m-commerce. Mobile accounts for 30-35 % of e-commerce sales. There is a surge in the number of people shopping on mobile with tier II and III cities displaying increased dominance. The study says that 50% of traffic comes from mobile and a majority of them are first time customers.
The study also talks about the challenges for the e-commerce sector. For example, there is an absence of a strong law for e-commerce and business model keeps changing. Low entry barriers leading to reduced competitive advantages, urban phenomenon, shortage of manpower and customer loyalty are the other challenges.