Union Minister of Steel Reviews Status of Steel Cost Reduction in Production

New Delhi, 21 September (H.S): A meeting with officials of the PSUs from the Steel Sector to review status of cost reduction in production of PSUs and action plan for the future was held under the Chairmanship of union Steel Minister Ram Chandra Prasad Singh last evening.

The Minister emphasised upon the need to carry out macro & micro analysis of the parameters affecting the cost of production and leave no stone unturned to convert the adverse conditions into opportunities. Singh directed that a road map for cost reduction through improvement in the aforementioned parameters in the next six months, be prepared and necessary action be taken. It was informed that coking coal, which is mostly imported, is the biggest cost element.

Singh urged the PSUs to focus on the important cost cutting measures such as reduction in the coke rate, increase PCI injection and increase use of pellets to reduce the consumption of coking coal and minimise the cost of production. It was also directed that these techno-economic parameters would be monitored on monthly basis through the Steel Dashboard.

The various parameters affecting the efficiency and productivity of the steel plants viz. BF Productivity, BF Coke Rate, BF PCI/CDI rate, Labour Productivity, Specific Energy Consumption, CO2 emission intensity, Water Consumption etc. were reviewed, so as to reduce the cost of production, improve the energy efficiency, reduce GHG emissions and minimise the water consumption.

The measures being taken to increase efficiency and productivity and reduce the cost of production of the steel plants & mines as per the Indian & global benchmarks and action plans to achieve the same were also discussed.