Gas availability for pellet plants soon, says Steel Secy

Steel Secretary, Aruna Sharma said that government is working on gas availability for pellet plants, and that Niti Aayog is in consultation with the oil ministry to work on the mechanism.

She also believes that the quality of gas-based steel would be more uniform and superior.

Below is the verbatim transcript of the interview.

Q: Tell us more about the gas availability for pellet plant?

A: The demand from the pellet manufacturers to shift to the gas based because gas based is a cleaner energy and gas based also gives better quality of steel. So secondary sector is also a big demand, they have placed their demand to Gail which is a supplying organisation and they are working out the module for it. So we are expecting that to come within this financial year. The whole thing should get concretised.

Q: What will be the pricing mechanism meant for the pellet plant?

A: Two things are very clear that if anybody shifting to alternate fuel or alternate raw material, it has to be affordable and it has to be guaranteed. So these are two clauses which have been flagged by the secondary steel sector - that once committed they must continue to get it and it has to be at affordable price. So that is where petroleum and natural gas and Niti Aayog is working upon and I am sure that very soon we will see the results because

So that is where petroleum and natural gas and Niti Aayog is working upon and I am sure that very soon we will see the results because secondary sector is absolutely in readiness for the shift. Gail is spreading pipeline across the country, so tapping from there will become very convenient for them. So that will bring down considerable demand and it will bring down the emissions also. So they will

Gail is spreading pipeline across the country, so tapping from there will become very convenient for them. So that will bring down considerable demand and it will bring down the emissions also. So they will environment-friendly and they will be more competitive in their rates, as well as the quality of steel is more uniform and superior when we go for the gas based.

Q: The finance ministry has said that they are going to come out with a NPA resolution. We already have Scheme for Sustainable Structuring of Stressed Assets (S4A) and corporate debt restructuring (CDR), special drawing rights (SDR) and other methods for producing debt of these non-performing assets (NPAs) in the steel sector. What are the challenges and what has been discussed at this stage?

A: It is absolutely between the lender and the taker. We as a ministry do not come into the picture but we are equally watching and ensuring that these results come out soon, so that the expansion plan in the steel sector is not hindered and it goes a long way. One thing as a steel ministry we will definitely say that all of them are becoming EBITDA positive and showing

One thing as a steel ministry we will definitely say is that all of them are becoming EBITDA positive and showing profits. So, definitely this sector is going to go up.