Setting up of Steel Plant
According to New Industrial Policy announced in July, 1991, steel industry has been de-licensed and removed from the list of industries reserved for the public sector subject to certain locational restrictions. No Industrial license is, therefore, required for setting up steel plants under the Industrial (Development & Regulation) Act, 1951 and the entrepreneurs are free to set up such plants anywhere in the country except in the restricted locations based on their commercial judgement. However, as per the information available in the Ministry of Steel, Posco India Project (P) Ltd. has signed a Memorandum of Understanding (MoU) with the State Government of Orissa on 22.6.2005 to set up a 12 million tonnes integrated steel plant at Paradeep, district Jagatsinghpur, Orissa.
As regards number of closed down steel units, Steel is a de-regulated sector; therefore, no steel unit is required to furnish details regarding closing down of a unit to the Ministry of Steel. In a de-regulated, liberalized economy, decision related to closing down or reviving of a steel unit is taken essentiality by the individual steel producing unit. The Government in such a market economy has the role of a facilitator only – it provides the overall policy environment to promote growth of industry. In order to promote the domestic steel industry, the Government has framed the National Steel Policy, 2005 and constituted an Inter-Ministerial Group (IMG), under the chairmanship of Secretary (Steel) in 2007, to monitor and coordinate the issues concerning major steel investments in the country related to infrastructure, raw material supply, environmental clearance and other resource constraints.
***
NSK/DB