Press Information Bureau

Government of India

Ministry of Steel

14-May-2012 14:23 IST

The Minister of Steel, Shri Beni Prasad Verma has said that there is a net increase in foreign direct investment inflows into the country in the metallurgical sector, including steel sector, during the last three financial years. The details are given below:

(*Source: Department of Industrial Policy & Promotion, Ministry of Commerce)

Following are the major investments proposed by foreign steel producers in the Indian steel industry in the last three years:

(*Source: Joint Plant Committee)

• In a written reply in the Lok Sabha today Shri Verma said, in addition to these, the following are some of the major investments made by foreign investors in the Indian steel industry:
• Acquisition of 14.99 per cent stake in JSW Steel Ltd. by JFE Holdings of Japan.
• Acquisition of 29 per cent stake in Uttam Galva Steels Ltd. by Arcelor-Mittal.

The Minister said, in order to monitor and coordinate various issues concerning major steel investments in the country, an Inter-Ministerial Group (IMG) has been constituted. Inter Ministerial Group (IMG) on steel sector is a forum to coordinate, monitor and review issues affecting major steel sector investments. The individual issues raised during the IMG meetings are further dealt by the concerned Ministries/Departments and State Governments in accordance with the provision of the extant rules and policies.

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NSK/DB

Foreign investment monitoring bolstered as major steel sector projects and acquisitions prompt inter ministerial coordination mechanism. Foreign direct investment into the steel sector increased over the three financial years to 2011-12, accompanied by multiple large proposed greenfield projects and notable cross border stake acquisitions. An Inter Ministerial Group (IMG) has been constituted to coordinate, monitor and review issues affecting major steel investments, with individual issues escalated to the concerned Ministries/Departments and State Governments for resolution in accordance with existing rules and policies.