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Government to facilitate growth of steel tube and pipes sector Print E-mail
Written by Viswanath   
Tuesday, 16 September 2008
New Delhi: Free pricing for the steel pipe and tubes manufacturing sector required the major players to adopt a competitive stance and responsible business outlook, according to Pramod Kumar Rastogi, Secretary, Ministry of Steel at the Steel Tube Summit 2008, organised by Confederation of Indian Industry (CII) here today.

Addressing the CII – Steel Tube Summit 2008 here today, Mr Rastogi however reiterated the government’s commitment to providing an enabling environment for growth of the sector and assisting in sorting out inter-sectoral issues.


He said that the sector had benefited greatly from demand both in the oil ands gas sector and from replacement demand in developed economies. Confident that the rising global demand for infrastructure and pipelines both in Asia and the Middle East would create opportunities for the Indian manufacturers, he pointed out that Government   intervention in the rural and agricultural sector and in ensuring supply of safe drinking water would create an additional demand of Rs 200,000 crore over the next few years which would benefit them greatly.

Delivering the keynote address, Mukesh Rohatgi, Chairman and Managing Director, Engineers India  Limited said though the country manufactures more than 90 per cent of its requirement of steel pipes and tubes ,  there was an urgent need for investments in technology upgradation, like pipeline linking.

This, he said, would provide more areas for the manufacturing sector to meet and increase their demand. There was a huge need for increasing both capacities and testing facilities to cater to the rising demand of infrastructure projects. Mr Rohatgi advised the Indian manufacturers to counter competition from abroad, especially China, by offering both quality and reliability.

Earlier welcoming the delegates to the Summit, Vivek  Kamra, Chairman, CII Precision Tube Division and Executive In charge ,  Tata Steel, said that in the last three decades, the production of steel tubes and pipes in the country had risen from 0.5 MT to 5 MT and 85 per cent of the production was today carried out by members of the CII Precision Tube Division. The sector had seen tremendous growth in the production of large diameter steel tubes and in the manufacture of seamless tubes and a significant amount of investment has been made in their production. He, however, cautioned that the lack of liquidity in the financial markets posed a challenge for raising working capital and making further investments.
Speaking on the opportunities over the next few years,  Kamra said that the industry would do well to make rapid changes in the technology and in increasing its knowledge base to make the most of the global surge in demand and to match the applications in the  automotive, oil & gas and structural tubing  sectors. The sector would also need to look both at substitutes and imports, he said.

Former Chairman, CII Precision Tube Division and President, Tube Products of India    N Srikant while delivering the vote of thanks said that talks were on with members for expanding the scope of the Precision tube Division. He said that there was need to resolve the problems of infrastructure, land allocation and rehabilitation to develop the steel production capacity in the country and urged the Government to play a facilitator’s role in increasing capacity.

The CII Steel Tube Summit was attended by delegates from both the user and manufacturing sectors as also policy makers. The Summit looks at perspectives of the user-supplier, technology issues and concerns of manufacturers. The final session focused on infrastructure needs and demands in the country.

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