IRON AND STEEL INDUSTRY Iron and steel industry

IRON AND STEEL INDUSTRY Iron and steel industry is of great importance among the basic and key industries of India. It is a core sector , essential for the economic and social development of the country and crucial for its defense. India has been very well familiar with the process of melting and molding iron since times immemorial.

§DEVELOPMENT OF IRON AND STEEL INDUSTRY It was in 1830 that first attempt was made to manufacture iron with modern technique in South India. In fact , history of iron and steel begins in India in 1970 with the setting up of Tata Iron and Steel Works at Sakchi in Bihar by Sh. Jamshedji Tata. During world war 1 this industry made good progress but in the post war period it suffered severe setback. In 1924 industry again made good progress.

1. Integrated Steel Plants Large steel plants are included in it. These plants produce soft steel in large quantity. Presently there are nine steel plants working in the public sector. Eight plants are owned and managed by Steel Authority of India Limited. In private sector also large steel plants are working.

2. Mini Steel Plants producing steel by electric furnaces are called mini steel plants. Steel manufactured out of scrap and sponge iron. Presently there are 196 mini steel plants in India. Of these 179 plants are producing steel. They account for 30 per cent steel production of the country.

PROBLEMS OF IRON AND STEEL INDUSTRY � Scarcity of coal and power � Dependence on foreign investment � Problem of transport � Lack of Efficient Engineers � High Price � Industrial disputes � Obsolete Machinery and backward technology � Less Utilization of production Capacity � Disequilibrium between Demand Supply � Excessive Staff � Threat from International Competition � Hike in prices of Steel Scrap.

SUGGESTIONS FOR THE IMPROVEMENT OF STEEL IRON � Improvement in Techniques � Diversification � Arrangement of best quality coal � Use of Full Capacity � Efficient Management of Pubic Sector Enterprise � Development of Small Factories � Solution of labour problems � Arrangement of Training � Price stability

Steel Industry And New Industrial Policy The new industrial policy 1991 has opened the steel industry to the private sector also. Now both the private as well as public sectors can establish steel plants in the country. The private sector can establish steel plant capacity without obtaining a license. The iron and steel industry has been placed in high priority sector.