Steel Minister Debates Fresh Action Plan to Curb Output Cost

SEATTLE (Scrap Monster): The Indian Steel Ministry had called for establishment of a roadmap for cost reduction in steel sector. It proposes to take necessary action to reduce cost of steel production.

The Union Steel Minister Ram Chandra Prasad Singh held a meeting with representatives of steel sector public sector undertakings (PSUs), aimed at reviewing the status of cost reduction in steel production. The Minister proposed formulation of action plan in future.

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The meeting identified coking coal as the main factor that contributes to rise in production cost. The Minister urged the steel PSUs to focus on major cost-cutting measures such as cut in coke rate, in addition to boost the consumption of pellets to reduce the use of coking coal, thereby resulting in reduced production cost. The progress of the initiatives will be monitored on a monthly basis.

The Union Minister also highlighted various parameters that could lead to increased productivity and reduced cost at steel plants and mines. It also considered other measures aimed at reducing carbon emissions, improving energy efficiency and minimizing water consumption.

Recently, the Indian Steel Association (ISA) representatives had held a meeting with the Minister to discuss the issues faced by the nation’s steel industry.