(a) whether the steel industries in the country have heavy burden of debt;
(b) if so, the details thereof;
(c) whether the production and demand of steel are on decline due to increase in the cost of raw materials, electricity and global competition; and
(d) if so, the steps being taken by the Government to resolve these problems?
THE MINISTER OF STEEL (SHRI DHARMENDRA PRADHAN)
(a)&(b): No, Sir. Steel is a capital-intensive industry with long gestation period. Steel companies require capital for activities such as capacity expansion and technological upgradation. The ideal Debt to Equity ratio for capital intensive & long gestation period sectors like power & steel is 2:1. The Indian steel sector Debt to Equity ratio is presently less than 2:1.
(c)&(d): No, Sir.
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