Question : EMPLOYMENT IN STEEL SECTOR



(a) whether there has been a constant increase in the production of steel in the country;

(b) if so, whether employment opportunities in the public sector steel companies are also increasing in the same ratio;

(c) the comparative details of production in various steel plants vis a vis direct employment generated during the last three years;

(d) whether there is any proposal to further boost the employment opportunities in steel sector; and

(e) if so, the details thereof alongwith the targets fixed in this regard, if any?

Answer given by the minister


THE MINISTER OF STEEL(SHRI BENI PRASAD VERMA)

(a) There has been a significant increase in production of steel during the last few years. The data on production of crude steel in the country during the last five years is as under:

Year	Crude steel production (in million tonnes)	Quantity	Growth rate	over last	year (%)
2006-07 50.81 9.4 2007-08 53.86 5.9 2008-09 58.44 8.5 2009-10 65.84 12.7 2010-11# 69.57 5.7

Source: Joint Plant Committee (JPC); =Provisional

(b) There is no direct correlation between increase in employment and the increase in production of steel. It is not necessary that the employment should increase in the same ratio with the increase in production due to technological developments, automation, process improvement & best practices and the need to progressively reduce manpower per million tonne of steel production which made it possible to achieve higher production targets with less manpower.

(c) The details of production of crude steel in the public sector undertakings and direct employment generated / recruitment made during the last three years are as under:-
Steel Authority of India Ltd.(SAIL) 
Year Production No. of (in million Recruitment tonnes)
2008-2009 13.41 1288 2009-2010 13.51 1788 2010-2011 13.76 1575

Source: SAIL
Rashtriya Ispat Nigam Ltd. (RINL)
Year Production Manpower as (in million on 31st March tonnes)
2008-2009 3.145 17,225 2009-2010 3.399 17,830 2010-2011 3.424 17,829

Source: RINL

(d)&(e): In today`s de-regulated, open market economy, the role of Government is that of a facilitator and in that capacity, it promotes/encourages growth of steel industry through suitable policy measures. Both the existing public sector steel companies namely SAIL and RINL are in the process of expanding their crude steel capacities thereby creating employment opportunities for unemployed youths.

Another public sector company, namely NMDC Ltd., is setting up a 3 million tonnes per annum integrated steel plant at Nagarnar, Chhattisgarh which is likely to generate additional employment opportunities.