Iron and Steel : Strengthening India · Page 4 of 16 15th Issue Steel Re Rolling Mills Association of India visit Steel Re Rolling Mills SRMA STEEL NEWS SRMA Association of India

Page 1 of 16 15th

Issue Steel Re Rolling Mills Association of India visit www.srma.co.in

SRMA STEEL NEWS

SRMA

Steel Re Rolling Mills

Association of India www.sram.co.in

Steel Re-Rolling Mills Association of India www.srma.co.in Email : [email protected]

Sl. No, Name

1. Shri B.M. Beriwala,

Chairman

2. Shri Jagmel Singh Matharoo,

Vice Chairman

3. Shri Ramesh Kumar Jain,

Treasurer

4. Shri Sanjay Jain

5. Shri Kailasj Goel

6. Shri G P Agarwal

7. Shri O P Agarwal

8. Shri S K Sharda

9. Shri Sandip Kumar Agarwal

10. Shri S. S. Sanganeria

11. Shri Sanjay Surekha

12. Shri R P Agarwal

13. Shri S. S. Bagaria

14. Shri Girish Agarwal

15. Shri Goutam Khanna

16. Shri Suresh Bansal

17. Shri Rajiv Jajodia

18. Shri Bhusan Agarwal

19. Shri Mahesh Agarwal

20. Shri Sita Ram Gupta

21. Shri Ashok Bardeja

http://www.srma.co.in/

mailto:[email protected]

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Executive Summary

Energy and Environment Management - Iron & Steel Sector

Redefine rule & policies governing MSMEs

Environment & Safety Focus

Labour & Legal News [Emerging Cyber Threats & Challenges ]

Taxation News

Event & Latest Steel News

CONTENTS

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Continuing with unstable market conditions, cost reduction activities are essential for steelmakers’

sustainability and future growth.

While these activities are necessary, it is crucial that steelmakers do not move away from their overall

company strategy, thus potentially causing further value erosion.

The different approaches that are currently being used to reduce cash operating costs include:

Reducing production volumes from loss making plants to stabilize steel prices and address oversupply in

the market

Restructuring labor

Canceling or reducing supply contracts

The optimal capital structure for the future business model

Today’s economic environment is forcing steelmakers to assess whether their capital structure is

optimized for the new operating environment. The goal for companies is the optimal allocation of capital

to maximize shareholder returns and achieve the most efficient capital structure.

As a result, an increasing number of corporate boards are putting greater focus on the key drivers of

efficient capital allocation.

This focus is extremely relevant to steelmakers because falling demand and oversupply in regional

markets have led to short-term liquidity challenges that may threaten credit ratings and debt covenants.

The long-term outlook for steel demand in India is quite robust due to increasing demand from several

sectors, including automotive, consumer durables, oil and gas, industrial machinery, real estate and

infrastructure.

Though there could be supply constraints in India in 2013, steel prices are likely to remain under pressure

due to a steady stream of imports. There have been sharp increases in capacity in Korea with demand

remaining stagnant and a slowdown in steel demand in Japan, leading to increased exports to India, partly

due to free trade agreements with these countries.

However, domestic oversupply concerns may resurface during 2014–15 when all of the new capacity

becomes operational. The new capacity in India will be vertically integrated and have the ability to use

fines as raw material.

India has seen a rapid rise in production over the past few years, which has resulted in India becoming

the fourth-largest producer of crude steel and the largest producer of sponge iron in the world.

There are many opportunities that are helping the Indian steel market grow. These include:

Rural demand picking up Investment planned in road sector Indian railway expansion

Automobile and power sectors offer opportunity for specialized steel Refocus on manufacturing

However, there are also some challenges that India must overcome in order to continue on the path of

becoming the next steel powerhouse. These challenges include

Land acquisition and environment regulations Shortage of coking coal Availability and pricing

of domestic iron ore Downstream value addition Insufficient infrastructure and logistics

Overburdened port facilities Adoption of modern technology

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Environment Management : Iron & steel industry in India are covered under the

Environment Protection Act (EPA) as well as Environment Protection Rules &

Regulations enacted & published by Ministry of Environment & Forest (MoEF). At

the beginning, the entrepreneurs are required to obtain statut ory clearances from

the Union/State Governments required under the EPA for setting up of any new iron

& steel plants or its substantial expansion. Further, the steel companies are required

to install specified pollution control equipments/facilities and also operate well

within the prescribed Standards/Norms in respect of air, water and noise pollutions

as also solid waste generation & utilization. These are monitored by Central/State

Pollution Control Boards. MOS helps & facilitates formulation/amendment of

Norms and standards.

Energy Management: Energy consumption in most of the integrated steel plants in

India is generally high at 6-6.5 Giga Calorie per tonne of crude steel as compared to 4.5-5.5 in steel plants abroad. The higher

rate of energy consumption is mainly due to obsolete technologies including problems in retrofitting modern technologies in old

plants, old shop floor & operating practices, poor quality of raw material viz. high ash coal/coke, high alumina iron ore etc. The

energy consumption in steel plants is however, gradually reducing because of technological upgradation, utilization of waste

heats, use of better quality inputs, etc.

Steps/Initiatives taken by the Government/industry:

Ministry of Environment & Forests being the nodal Ministry, has evolved statutory norms/ standards for environment

management & pollution control in all sectors of economy including Iron & Steel. The compliance of these standards is

monitored by Central Pollution Control Boards and State Pollution Control Boards/ Committees. Energy & Environment

conservation is directly related to the technologies adopted by the iron & steel plants. While steel plants are themselves

addressing the energy & environment issues in the plants through technological upgradation/ modernisation, and/or diffusion of

energy efficient & environment friendly technologies in the plants, Government is facilitating improvement in the energy &

environment scenario in the sector iron & steel sector through various forums/ mechanism, details of which are given below:

1. Charter on Corporate Responsibility for Environment Protection (CREP): This is an initiative of Ministry of

Environment & Forests/ Central Pollution Control Board (CPCB) in association with Ministry of Steel and the main/ major steel

plants to reduce environment pollution, water consumption, energy consumption, solid waste & hazardous waste management etc

as per mutually agreed targets with the purpose to go beyond the compliance of regulatory norms for prevention & control of

pollution through various measures including waste minimization, in-plant process control & adoption of clean technologies.

2. Clean Development Mechanism (CDM) under Kyoto Protocol : Under this Scheme, energy efficient technologies are

encouraged and any saving in carbon dioxide emission through adoption of energy efficient technologies is traded in the form of

Certified Emission Reductions (CERs). The present rate of CER vary in the range of Euro : 10-20/ CER. In so far as iron & steel

industry is concerned, the National CDM Authority has so far approved 176 projects amounting to reduction of 107 million

tonnes of CO2 equivalent.

3. UNDP-GEF Steel Projects : Under this Scheme, a fund has been created with contribution from UNDP- Global Environment

Fund (GEF) to support energy efficiency programmes in re-rolling mills in the country. The relevant energy efficient

technologies have already been implemented in some of the units and are under implementation in several other units. This

scheme is implemented by a Project Monitoring Cell (PMC) under the overall supervision of Ministry of Steel.

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4. NEDO Model Projects: Government of Japan through Ministry of Economy Trade & Industry provides funds i.e as Overseas

Development Aid (ODA) under its Green Aid Plan (GAP) through Deptt of Economic Affairs in GOI for setting up of energy

efficient, environment friendly projects known as Model Projects in various sectors including steel. These projects are routed

through and managed by NEDO (New Energy & industrial technology Development Organisation), Japan.

5. Asia Pacific Partnership on Clean Development and Climate (APPCDC)/ Global Superior Energy Performance

(GSEP) :Under this mechanism, 7 countries namely, America, Australia, China, Canada, India, Japan and South Korea have

joined together to promote energy efficiency measures through supply of technology/ equipment/ fund in various sectors of the

economy, including iron & steel. Accordingly, there are 8 Task Forces including steel. In India.

Global Superior Energy Performance (GSEP) Partnership programme has been launched consequent upon the closer of the

erstwhile Asia Pacific Partnership on Clean Development and Climate (APPCDC) and its activities has been transferred to GSEP.

Under GSEP also, there are Sectoral Working Groups on various sectors of economy and the Steel Working Group (SWG) caters

to the iron and steel industry. India is already a signatory to Clean Energy Ministerial (CEM) & GSEP and therefore, will

continue to pursue the programmes under SWG for the benefit of Indian Steel Industry.

In the first meeting of GSEP-SWG held in Sept 2011, which was represented by India

through Ministry of Steel, the following individual projects were selected to be

pursued under the scheme in line with the activities being pursued under the erstwhile

APP-STF:

Project-1: Steel Workshop for exchanging information and sharing experience

between membership countries.

Project-2: Status Review of Steel Industry Related Indicators for Energy

Saving to review the current status of related issues such as equipment

diffusion rates of energy-saving facilities in plants and barriers of equipment

diffusion, after identifying effective technologies and equipments for energy

saving, environment protection and recycling etc.

Project-3: Performance Indicators Setting to identify each set milestone of performance indicators by taking need into

account each country’s situation.

Project-4: Performance Diagnosis to study energy saving and environment protection in steel plants by experts of SWG

member countries to assist in introduction/diffusion of Clean and Green technologies.

Project-5: State-of-Art Clean Technology handbook to reflect advances and best available technologies and

Project-6: Technology Deployment to develop detailed practical projects to deploy State-of-Art Clean Technologies.

6. National Action Plan on Climate Change: This is a new initiative of the Government and the Hon. Prime Minister has setup

an Institutional Mechanism to address the problem at the National level. The National Action Plan Outlined 8 missions – one of

them being National Mission for Enhanced Energy Efficiency (NMEEE). NMEEE operates under the Bureau of Energy

Efficiency (BEE), a statutory body constituted under the Ministry of Power.

NMEEE is an integrated approach for climate change mitigation through energy efficiency measures. The Mission has

commenced implementation from April 2011 under the flagship ‘Perform Achieve and Trade (PAT)’ initiative. PAT is a market

based mechanism to enhance cost effectiveness in improvements in energy efficiency in energy intensive large industries and

facilities, through certifications of energy savings that could be traded.

Source : http://steel.nic.in/energy.htm

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Redefine rule and policies governing MSMEs, say Special Commissioner of

Industries, Delhi

Rajiv Kale, Special Commissioner of Industries Government of NCT

Delhi, has underlined the need to redefine and elaborate on rules and

policies governing MSMEs particularly the MSMED Act as these

remain sketchy. The time had come to move from regulatory l

egislation to a progress mindset, he added.

Speaking at a FICCI-Confederation of Micro Small and Medium

Enterprises (CMSME) seminar on MSME Prosperity in New Delhi on

April, 2014 organised with a view to empowering Indian MSMEs and

build their competitiveness, Kale proposed that FICCI should take the

lead and help in resolving definition of terms such as supplier and delay

and non-payment to MSMEs by large corporates.

On ease of doing business Kale said that it was difficult for the prospective entrepreneurs to enter the business. He

suggested that FICCI should walk with the prospective entrepreneurs and experience the journey with them and

understand what impacts and hinders their progress. On this note, he announced that for filling Entrepreneur

Memorandum I – (EM-I), the government had done away with the requirement from MSMEs to get DPCC

clearance and factory license from the concerned authority through it would be required for filing EM-II.

Kale also urged that the State Level Advisory Board (SLAB) to expand its scope and focus on a wide range of

issues. Jasbir Singh, Zonal General Manager –NCR, National Small Industries Corporation (NSIC) Highlighted the

initiatives was that as a nodal agency, NSIC operates a Single Point Registration Scheme under the Government

purchase Programme, wherein the registered Small Scale Industries (SSI) units get purchase preference in

government purchase programme, exemption from payment of Earnest Money Deposit and other such benefits.

Sanjay Bhatia, President FICCI CMSME and MD, Hindustan Tin Works Pvt. Ltd., said that it was imperative to

work towards removing the bottlenecks inhibiting the growth of MSMEs so as to enable the sector to respond

effectively to challenges. Hence providing a favourable ecosystem was a necessary part of enabling growth of

MSME sector. This in turn required reliable partners whi could provide these enterprises with requisite help in

scaling up their business and making them competitive for entry into the global value chain.

In his concluding remarks R Narayan, Vice-President, FICCI CMSME and Founder & CEO, Power2 SME said that

the role of MSME sector as a development partner of the Government of India faces fundamental challenges,

including insufficient infrastructure and inadequate access to power and financing. Furthermore, the sector was

largely dominated by informal sector. It was imperative for government-led sector development programmer to give

a high priority to the development of MSMEs, and promote entrepreneurship and ownership of enterprises,

especially among first generation entrepreneur.

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Safety organization is of prime importance in the iron and steel industry,

where safety depends so much on workers reaction to potential hazards.

The first responsibility for management is to provide the safest possible

physical conditions, but it is usually necessary to obtain everyone

cooperation in safety programs. Accident-prevention committees, workers

safety delegates, safety incentives, competitions, suggestion schemes,

slogans and warning notices can all play an important part in safety

programs. Involvin g all persons in site hazard assessments, behavior

observation and feedback exercises can promote positive safety attitudes

and focus work groups working to prevent injuries and illnesses. Accident

statistics reveal danger areas and the need for additional physical

protection as well as greater stress on housekeeping. The value of

different types of protective clothing can be evaluated and the advantages

can be communicated to the workers concerned

Training - Training should include information about hazards, safe methods of work, avoidance of risks and the wearing of PPE.

When new methods or processes are introduced, it may be necessary to retrain even those workers with long experience on older

types of furnaces. Training and refresher courses for all levels of personnel are particularly valuable. They should familiarize

personnel with safe working methods, unsafe acts to be banned. Training should be conducted by experts and should make use of

effective audio-visual aids. Safety meetings or contacts should be held regularly for all persons to reinforce safety training and awareness

Engineering and administrative measures All dangerous parts of machinery and equipment, including lifts, conveyors, long travel

shafts and gearing on overhead cranes, should be securely guarded. A regular system of inspection, examination and maintenance

is necessary for all machinery and equipment of the plant, particularly for cranes, lifting tackle, chains and hooks. An effective

lockout/tagout program should be in operation for maintenance and repair. Defective tackle should be scrapped. Safe working

loads should be clearly marked, and tackle not in use should be stored neatly. Means of access to overhead cranes should, where

possible, be by stairway. If a vertical ladder must be used, it should be hooped at intervals. Effective arrangements should be

made to limit the travel of overhead cranes when persons are at work in the vicinity. It may be necessary, as required by law in

certain countries, to install appropriate switchgear on overhead cranes to prevent collisions if two or more cranes travel on the

same runway.

Locomotives, rails, wagons, buggies and couplings should be of good design and maintained in good repair, and an effective

system of signaling and warning should be in operation. Riding on couplings or passing between wagons should be prohibited.

No operation should be carried on in the track of rail equipment unless measures have been taken to restrict access or movement of equipment.

Great care is needed in storing oxygen. Supplies to different parts of the

works should be piped and clearly identified. All lances should be kept clean.

There is a never-ending need for good housekeeping. Falls and stumbles

caused by obstructed floors or implements and tools left lying carelessly can

cause injury in themselves but can also throw a person against hot or molten

material. All materials should be carefully stacked, and storage racks should

be conveniently placed for tools. Spills of grease or oil should be

immediately cleaned. Lighting of all parts of the shops and machine guards should be of a high standard

Industrial hygiene - Good general ventilation throughout the plant and local

exhaust ventilation (LEV) wherever substantial quantities of dust and fumes are generated or gas may escape are necessary,

together with the highest possible standards of cleanliness and housekeeping. Gas equipment must be regularly inspected and

well maintained so as to prevent any gas leakage. Whenever any work is to be done in an environment likely to contain gas, carbon monoxide gas detectors should be used to ensure safety.

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Brief Proceedings of the Symposium on ‘Emerging Cyber Threats & Challenges’

held on 24 April 2014 at MCC conference Hall

Shri Vishnu Kumar Bhandari, Chairman, Standing Committee

on IT & Communication, MCCI in his welcome address

expressed his apprehensions about the emerging Cyber crime

occurences in India. He mentioned that Cyber crime cases in the

country registered under the IT Act last year rose by about 61% to

2,876 with Maharashtra recording the most number of cases. He

advocated for the need to cope up with the growing cyber crimes

by the legal and regulatory authorities.

While speaking on the emerging cyber security threats, Shri

Apurba Das Datta (CISA, ISACA & a Certified Ethical Hacker ) highlighted that ‘Mobile Threats’,

‘Hacktivism and Leaks’, ‘Ransomware’, ‘Watering-hole attacks’, ‘Attacks on cloud storage

facilities’, ‘Weakest link in the security chain’ and ‘emerging Cyber-mercenaries like Icefog that is

responsible for a huge cyber espionage campaign,’ are posing a great challenge to the individual as

well as businesses in today’s world. He opined that no one can guarantee 100% security but there is

always a scope to minimize this. He said that Lack of : ‘Awareness’, ‘Trained manpower’ and

‘Infrastructure’ are the prime challenges which indulge cyber crimes. To combat the prevailing threats,

he recommended - ‘User Awareness and Training’, ‘Incident Response Capability, ‘Inbound and

outbound filters at gateways’, ‘Security Architecture Development’, ‘Implementation of Security

Process’, ‘Use and regular update of firewalls’ and ‘use of anti-virus and anti-spyware programs’ etc.

While speaking on the legal aspects of Cyber Security, Shri Sukanta Chakrabarty(Advocate, Calcutta

High Court) viewed that the major challenge in Cyber world is not presence of intelligent hackers, but

the ignorance of common man. People are not aware where to lodge a complaint, what types of remedies

available to them etc. He pointed out that Kolkata Police’s Official Website on Cyber Crime does not

have an online complaint lodging facility. In this regard, he guided that a person can go and lodge a

complaint in Police Station against cyber crime but if an FIR is not filed, then he/she may file an

application under Section 156 Clause 3 of the Criminal Procedure Code. On the IT Act 2000, he

mentioned that although the Act has elaborated the types of offences but it does not define ‘Cyber

crime’. Some of the lacuna in the IT Act 2000 are :

Forgery, email spoofing, email chatting, web chatting, email abuse, online selling of drugs, arms,

pornographic messages do not come under the purview of the IT Act.

There is no provisions on taking expert opinion under this Act

Lack of existence of strict Cyber Security disclosure norms for companies.

He recommended that ‘Education on Cyber Laws’, ‘High-End Cyber Crime Poles’, ‘Cyber Centre of

Excellence in line with the U.S’. and ‘immediate signing of International Cyber Security Treaty’ are some

of the steps to be taken right away to fight against this menace.

http://securityaffairs.co/wordpress/17706/cyber-crime/kaspersky-reveals-kimsuky-operation-targeting-south-korea.html

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Shri Siddhartha Chakraborty (Officer-in-Charge, Cyber

Police Station, Kolkata Police) in his presentation pointed out

that as per Cyber Attack Statistics 2013, India ranks among

third (5%) in the world share of Cyber threats. He also warned

that government portals are most vulnerable to Cyber crimes.

Globally, small businesses are now the target of 31% of all

attacks. Some common Cyber-safety threats can be caused by

Viruses, Hackers, Identity Thieves and Spyware. He gave some

guidelines and warned individuals against some common

occurences of Cyber attackes which can be dealt with little

awareness :

A Phising email can be spotted by – ‘a non-descript or incorrect sender’s address’, ‘subject with

an exclamation point’, ‘asked to provide account information’, ‘poor grammer & overuse of

capitalization’, ‘commands & threats’ etc.

Criminal offences committed by Ex-employees/Partners/members of a company by misusing the

confidential data like using email ids, digital signature.

Every company must use a Pen-Drive/USB for preserving the private key for the purpose of using

the digital signature for their official use and it is the responsibility of that company to preserve

the private key secretly so that no one can use the same with out the permission of the authorized

person of the company.

Be careful of lookalike email ID like : [email protected] and [email protected].

A company must take care of the control panel of their official website and database and change

the password after resignation of the employee who had the access of the same control panel.

Few Online Banking Safety tips included :

Use a strong passwords

Don’t click on links inside e-mails or instant messages

Never give out personal information

Never use unprotected PCs at cyber cafes for internet banking

Try to use virtual key board.

Never leave the PC unattended when using internet banking in a public place.

Register for Mobile SMS, E-mail Transaction Alerts.

Never reply to emails asking for your password or pin.

Visit banks website by typing the URL in the address bar and use https.

Log off and close your browser when you have finished using internet banking.

Citing instances of different types of Cyber crime cases, Shri Chakraborty informed that only 60

Cyber crime cases were registered under the Kolkata Cyber crime PS in 2013. He further said that some

Nigerians are very smart and they run a big racket with India to siphon off money and channelise it

through their accounts which are mostly non-traceable.



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TAXATION NEWS

AMENDMENTS IN SERVICE TAX

1. Section 65B(11) – Meaning of Approved Vocational Course mentioned in negative list expanded

No service tax could be levied even on vocational courses provided by the industrial training institute or an

industrial training centre affiliated to State Council for Vocational Training as the same is now covered under

Negative List of services. Earlier only the courses provided by training institute or an industrial training centre

affiliated to National council for Vocational Training were covered under Negative List of services.

2. Section 65B(40) – Even Process amounting to manufacture or production under The Medicinal and toilet

preparations (Excise Duties) Act, 1955 covered by negative list Earlier only process covered by Central Excise Act,

1944 was covered.

3. Now all kinds of testing in agricultural sector including seed testing is excluded from service tax.

4. VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME, 2013 [VCES]

A new scheme is introduced by the Finance Act, 2013 to encourage voluntary compliance with

the following main features:

1. The scheme cannot be used against whom service tax department has already initiated some inquiry or

investigation. It is those who has not submitted returns [non – filers or stop filers] or those who have filed returns

with false figures.

The defaulter will be required to make a true declaration of all his pending service tax dues from 1/10/2007 to

31/12/2012 and pay at least 50% of that before 31/12/2013. The balance 50% can be paid before 30/6/2014 (without

interest). Alternatively, the balance 50% can be paid by 31/12/2014 with interest for the period commencing from

1/7/2014 till the date of payment.

3. Cenvat credit not allowed while paying service tax in this scheme.

4. On compliance with all the requirements the person will have freedom (immunity) from interest, penalties and

other proceedings.

5. Taxpayer will need to settle their dues for the period after 31/12/2012 under the normal provisions

13. Incentive for acquisition and installation of new plant or machinery by manufacturing

company [Section 32AC] [W.e.f. A.Y. 2014-15]

(A) Manufacturing company eligible for deduction @ 15% of actual cost of new asset being eligible plant

and machinery [Section 32AC(1)]

In order to encourage substantial investment in plant or machinery, the Act has inserted a new section

32AC in the Income-tax Act to provide that where an assessee, being a company,—

(a) is engaged in the business of manufacture of an article or thing; and

(b) acquires and installs new assets (eligible plant or machinery) during the period beginning from 1.4.2013 and

ending on 31.3.2015 and the aggregate amount of actual cost of such new assets exceeds `100 crores, then, such

company shall be allowed—

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(i) for the assessment year 2014-15, a deduction of 15% of aggregate amount of actual cost of new assets

acquired and installed during the financial year 2013-14, if the aggregate amount of actual cost of such

assets exceeds `100 crore;

(ii) for the assessment year 2015-16, a deduction of 15% of aggregate amount of actual cost of new assets,

acquired and installed during the period beginning on 1.4.2013 and ending on 31.3.2015, as reduced by the

deduction allowed, if any, for assessment year 2014-15.

(B) Meaning of new asset [Section 35AC(4)]

New assets means any new plant or machinery (other than ship or aircraft) but does not include—

(i) any plant or machinery which before its installation by the assessee was used either within or outside

India by any other person;

(ii) any plant or machinery installed in any office premises or any residential accommodation, including

accommodation in the nature of a guest house;

(iii) any office appliances including computers or computer software;

(iv) any vehicle;

(v) any plant or machinery, the whole of the actual cost of which is allowed as deduction (whether by way

of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains of

business or profession” of any previous year.

The above “new asset” acquired and installed should not to be sold or otherwise transferred within a period of 5

years from the date of its installation except in connection with amalgamation or demerger.

(C) Consequences if the new asset acquired and installed is transferred within a period of 5 years from the

date of its installation [Section 32AC(2)]

If any new asset acquired and installed by the assessee is sold or otherwise transferred except in connection with the

amalgamation or demerger, within a period of 5 years from the date of its installation, the consequence of the same

shall be as under:

1. The amount of deduction allowed under section 32AC(1) in respect of such new asset shall be

deemed to be income chargeable under the head profit and gains of business and profession of the previous

year in which new asset is sold or otherwise transferred.

2. In addition to the above, if any capital gain arises under section 50 on account of transfer of such new

asset, that too shall become taxable in that previous year.

(D) Consequences if amalgamated company or resulting company transfers such assets within 5 years from

the date of installation by the amalgamating company or demerged company [Section 32AC(3)]

If after amalgamation or demerger, the amalgamated company or the resulting company, as the case may be, sells or

transfers any such asset within 5 years from the date of its installation by the amalgamating company or the

demerged company, then the amalgamated company or resulting company shall be taxed in the same manner as it

would have been taxed in the hands of the amalgamating or demerged company, as the case may be.

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Indian Pellet & DRI Summit 2014

Policy <> Price <> Trade <> Technology <> Networking

Organiser : SteelMint Events

Venue : ITC Sonar, Kolkata

Date : Friday 27t h

June,2014

Website : http://events.steelmintgroup.com/index.php

Minerals, Metals, Metallurgy & Materials (MMMM) 2014

4-7, September 2014

Pragati Maidan

New Delhi

For Booking & Enquiries

International Trade and Exhibitions India Pvt. Ltd.

1106-1107, Kailash Building, 26 K.G. Marg, New Delhi- 110001, India

Tel: +91 11 40828282

Gagan Sahni: +919810036183

Varun Sharma:+91 11 40828208

Smita Roy: +91 11 40828217

Sandeep Arora: +91 11 40828227

9th

Asian Stainless Steel Conference 4-5 June 2014

Organizer : Metal Bulletin Events and SMR

Venue : Ritz Carlton, Hong Hong

Date : 4-5 June 2014

Website : https://www.metalbulletin.com/EventRegister/7128/Events/9th-Asian-Stainless-

Steel-Conference.html?Ev

--------------------------------------------------------------------------------------------------------------------------------------------

The 15th

Guangzhou International Stainless Steel Industry

Exhibition Organiser : Guangzhou Julang Exhibition Design Co. Ltd.

Venue : China Import and Export Fair Pazhou Complex B Area First Floor

Date : June 16-18, 2014

Website : http://www.julang.com.cn/

http://events.steelmintgroup.com/index.php

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STEEL NEWS

Iron ore shortfall can lead to flare in long prices in India As iron ore shortage looms large over India after banning mining from deemed lease (after 2007) by Supreme Court. If the SC decides on a complete ban on mining in Odisha like Karnataka and Goa earlier, it would strike at the very heart of the country's 80 million tonness domestic steel industry. These include mines belonging to steel majors like Tata Steel and SAIL where production could come to a grinding halt. It would also hit a number of smaller players including pellet manufacturers, sponge iron companies and rolling mills located in and around the mines. In the emerging scenario it is likely that more rolling mills would switch over from sponge to scrap as input material for manufacturing long products. Presently scrap market is going strong with offers to Indian importers being made at USD 390-395 per tonne CFR , Mumbai (HMS 1&2), shredded scrap is being offered at USD 400-405 per tonne , CFR In the eventuality of iron ore production getting curtailed after the ban being clamped in Odisha apart from Karnataka and Goa demand for scrap will soar leading to increase in price and input cost. Hiked input cost will lead to increased cost of production for ingot and re-rollers. However finished demand remaining sketchy owing to low demand from construction and infrastructure margin of re-rollers will be squeezed further. Source – Strategic Research Institute, Steel Guru (www.steelguru.com)

Mexican and Indian steel firms join hands to set up micro steel mills Monterrey, Mexico based PMP Grupo-Planeacion and India based Preet Group PG announced a business alliance at the

Association for Iron & Steel Technology conference in Indianapolis, Indiana to expand into the US and Canada, building steel

scrap based mini mills tocater to regional markets , which would strategically located in Mexico , USA and Canada

Mr Porfirio Gonzalez president of PMP said that “The concept is to build the micro steel mills directly in regional markets ,

capturing and processing of steel scrap in the area, in addition to steel products to be sold in an area about 100 miles around ,

which would eliminate the costs of transporting raw materials and finished products.”

He added that the plants are intended for the production of barbed wire, chain link fence, mesh paths, nails cloves and wire.

Mr Preet Singh Chauhan director of Preet Machines Limited India said that each plant requires an initial investment average

between USD 40 and USD 100 million, which will create 200 to 400 direct jobs in each plant .

Source - dineroenimagen.com

(www.steelguru.com)

Indian steel consumption may touch 75 million tonnes in 2014-15 - TATA Steel

PTI reported that TATA Steel expects the metal's consumption in India to grow by about 5% to 75 million tonne in 2014 to 2015

on hopes that the economy will kick start once the new government is in place after the general elections results are out next

week.

Mr Peeyush Gupta VP, Marketing & Sales of TATA Steel said that "We expect the economy to kick-start post the new

Government. Fundamentals of the economy remain strong and the need for infrastructure creation is stronger."

He said that "Consequently, we expect robust improvement in investment -led demand in FY' 2015 and steel consumption should

touch 75 million tonne, a growth of 4.5% to 5% over FY' 2014."

http://www.steelguru.com/


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Mr Gupta said in the company's newsletter posted on the website that projections for long term growth continue to be bullish and

the country will gear itself to touch 125 million tonne by 2020 and 175 million tonne by 2025. The coming 10 years will be a

decade of steel.

He also projected rural consumption to grow as the economy improves. India's per capita steel consumption is 58 kilogram as

against world average of 250 kilogram while rural India consumes only 14 kilogram per capita.

Mr Gupta further said that "As the economy matures, rate of urbanisation improves, and this gets reflected in increased steel

usage in construction and in consumables. Therefore, steel demand will get a major boost from increased RCC housing type

construction and conversion of thatched and sand tileroofs to various types of steel roofing."

He said that the other significant action is from the government to drive inclusive growth, as enumerated in the 12th Five Year

Plan with the launch of schemes like MGNREGA, Sarva Shiksha Abhiyan and Bharat Nirman.

Mr Gupta said that with the improvement in income levels and direct support to pukka housing, steel companies have a good

prospect in rural India. Over the last few years, the initiatives taken by TATA Steel to reach out to nearly every district in the

country through its dedicated distribution network makes it favourably placed to address the rural demand growth.

In the recent past, TATA Steel has launched an innovative solution focusing on increased steel usage in a rural setting which is

steel intensive, yet affordable called NEST-IN. It has also ventured into pilot projects that promote use of steel in furniture and

house doors.

Construction sector accounts for around 60% of the country's total steel demand while the automobile industry consumes 15%.

Both the sectors have been hit by a slowdown in the economy which grew by 4.9% in 2013 to 2014, as against the growth rate of

4.5% in 2012 to 2013 the decade low levels.

Source - PTI

(www.steelguru.com)

Citi raises Indian GDP growth forecast to 7pct in FY 2015-16 Citi Research, a division of Citigroup Global Markets, has raised its India GDP growth forecast for 2015-16 to 6.5% on

expectations of an accelerated pickup in investments. It has, however, retained the GDP growth forecast for 2014-15 at 5.6%.

Citi had earlier projected economic growth for 2015-16 at 6.2%.

This move comes on the heels of the Bharatiya Janata Party’s stunning victory, beating expectations by gaining an absolute

majority in the 2014 general elections.

Ms Rohini Malkani, Chief Economist of Citi India, said in a research noted that “While the new political formation is likely to set

the wheel in motion immediately, effects on the economy will be lagged and a full-fledged recovery will be realised only in 2016

-17.”

The research note added that Citi is of the view that governance and institutional reforms will start reflecting in the numbers with

a lag. Also, high inflation and interest rates could impede growth in the short term.

Lower CPI inflation

Citi has maintained its view of Consumer Price Index based inflation averaging 8% in 2014 to 2015 as against 9.5% in 2013 to

2014. But it has revised down its 2015 to 2016 inflation estimate to 6.5% on the renewed political will of the Government.

The decline in CPI inflation would largely be in line with the glide path envisaged by the Patel committee report. The CPI

inflation target of 6% is achievable if structural issues are addressed.

As regards monetary policy, Citi has maintained its view of an extended pause on policy rates through 2014 as CPI inflation

roughly meets RBI’s target of 8% by January 2015 and 6% by January 2016.

Source - Business Line

(www.steelguru.com)



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India : TMT Re-bar Offers decline with fall in Semi Finish Prices

Indian TMT RE-bar offers declined upto INR 600/MT in week’s time. Low sales volume and

fall in Ingot prices have made Re-bar manufacturers to cut their offers by INR 100-300/MT on

daily basis.

Finish Long Market

Major down fall in TMT prices witnessed in Muzaffarnagar, Mumbai, Raipur & Hyderabad,

whereas in Chennai, it is Gained by INR 150/MT W-o-W.

Hyderabad based a trader said, “We were not expecting any major changes in the market but

stagnant sale of TMT from last 4-5 days and fall in Ingot Prices led to decline in offers.

He further added, most of the people are awaiting the election result which resulted in low

trading valume.

Semi Finished Market

Stagnant sales, high inventory, pending decision on mining ban in Orisha and upcoming results

of election have made buyers cautious. Ingot offers dropped upto INR 700/MT W-o-W in the

most cities. While, Hyderabad endured major correction of INR 1000/MT in Ingot offers.

“Low buying from finish long manufacturers across the country and falling sponge iron prices

owing to high inventory are the main reasons of downfall in Ingot offers,” said an Ingot

manufacturers based at Mandi Gobindgarh.

Today’s Market Scenario

Sponge : Sponge iron prices increased by INR 100-300/MT across India except Durgapur, where

it is corrected by INR 50/MT.

Ingot : Ingot offers rose by INR 100-200/MT in most of the cities.

TMT : Guardian TMT (Mumbai) offers declined by INR 100/MT from previous trade 20 mm

TMT is being offered at INR 36100/MT, Raipur GK TMT offers are unchanged at INR

35,500/MT (28 mm).

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Steel Industry wants new Govt. to Push Demand

NEW DELHI : Battered by subdued demand, steel firms are looking for ward to the new government to help revive

consumption that will sort our various problems plaguing the sector. The government will be in place following the

results on the Friday of the just-concluded general elections. “We don’t need many things. Our sole demand from

the new government is to help improve the demand for steel which was at its lowest in several years last fiscal.

Improved demand will solve various problems that are impacting the industry,” said an industry official. Steel

consumption in 2013-14 grew by just 0.6% the lowest in four years, to 73.93 million tonnes, hit mainly by slow

expansion of domestic economy. In 2012-13 too it was very strong growing just by a 3.3% on account of the

slackening economy and high interest rate regime.

The Economic Times, Kolkata 14.05.2014

Steel Ministry suggestions to new government in India

Business Standard reported that diluting PSUs' stake to 51%, ensuring raw material security to steel makers and steps to boost

production are among a dozen suggestions by the Steel Ministry for the new government. The presentation comes ahead of Mr

Narendra Modi led BJP government taking charge.

In a presentation for the Cabinet Secretary, the ministry suggested that the new government should bring down stakes in steel

PSUs to 51% and utilise the proceeds for development. Steel Authority of India, Rashtriya Ispat Nigam, iron ore miner NMDC

Limited, manganese ore producer MOIL Limited and pellet maker KIOCL Limited are the major PSUs under the administrative

control of the Steel Ministry. Government has 80% stake each in SAIL, NMDC and MOIL. RINL and KIOCL are yet to be

listed. It can rake in a whole lot of funds by pruning its stakes down to 51% in these companies.

The ministry has also suggested that there is a need to reform the current raw material policy and allot captive mines to steel

producers so that they meet at least half of their long-term requirements. There is also a need to introduce single-window

mechanism for streamlining the allocation of raw materials.

It was also stated that there is need to create special mining zones through a special legislation and prepare comprehensive

environment, forest management plans for areas declared to be bearing raw material like iron ore and coal.

The ministry also suggested that initiatives should be taken to raise country's steel production capacity to 300 million tonne per

annum within the next 10 to 15 years from around 100 million tonne per annum now.

It said that to achieve this goal, special purpose vehicles should be created in collaboration with state governments to fast track

land acquisition and statutory clearances.

Officials said that “In line with power sector, which is entitled to duty-free imports of gas, steel sector should also be allowed to

import critical raw material like iron ore, natural gas and scrap without any duty.”

Source – Business Standard

(www.steelguru.com)


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