Section

INTERVIEW

‘‘ We can safely say that we are

witnessing a healthy revival
of stainless steel market ’’

Mr. K. K. Pahuja
President
Indian Stainless Steel Development Association

Mr. K. K. Pahuja has over 40 years' experience in the Steel Industry in the areas of operations, market development and
policy‐making. As President of Indian Stainless Steel Development Association, he is currently driving efforts for
promotion and growth of Indian stainless‐steel industry. He has worked at Steel Authority of India Ltd. as Executive
Director, where he has been part of corporate operations and involved in product development, enhancing operating
efficiencies and driving growth plans of the company. He is a mechanical engineer from BITS Pilani and MBA from
FMS, Delhi University. He has been a senior assessor for CII‐EXIM Bank Business Excellence Award and has been
advising many companies on their journey towards excellence and change management. He is also guest faculty for
Strategic Management at IIFT Delhi.

S.S: Post lockdown, how much of improvement in the the first two have traditionally been major stainless‐steel
stainless-steel market in India? producing countries, there has been huge stainless steel
K.K.P: As you may be knowing, Indian stainless steel capacity build‐up of about 5 million tonnes of flat products
industry was affected, like rest of the industry, by sudden in Indonesia in the ASEAN region during last 2‐3 years. This
Covid 19 lockdown announced in last week of March 2020. large capacity is totally disproportionate to local ASEAN
The production was resumed in phases by different demand and targeted towards other growing markets,
companies from third week of May 2020, after the thus distorting stainless steel markets around the world.
lockdown was lifted. There were multiple challenges while Consequently, the import patterns of stainless steel flat
resuming production, like setting up safety and health products into India has completely got skewed towards
protocols at the plants, migration of labour, complying ASEAN during last two years. If one were to look at the
with many Government guidelines, rebuilding the supply share of imports from the FTA partner countries, the
chains, and reviving the markets. The projection for following scenario emerges:
demand/consumption for 2020‐21 is difficult to predict as
situation is still evolving but we can safely say that we are
witnessing a healthy revival of stainless steel market. We
are now close to pre covid levels and soon will be back to
normal operations. Having said that, I would like to add
that loss of production and market in Apr‐May 2020 is
difficult to make up this year.
S.S: How has the stainless-steel market with the Free So more than half of imports is now from ASEAN. While all
Trade Agreements (FTAs) signed by India with ASEAN FTAs partner countries have benefited more than us from
countries? these arrangements, subsidized stainless steel flat
K.K.P: As you may be knowing India has FTAs with Japan, products from ASEAN have been greater cause of concern.
Korea and the ASEAN block and stainless steel products We welcome Government move to review these FTAs so
can be imported from these countries at zero duty While as to have a level playing field for our industry.

19 OCTOBER 2020
Section
INTERVIEW

S.S: What steps are you as an organisation representing S.S: What future of Indian Stainless Steel do you see in
Stainless Steel producers feel the Government of India the next 5 years?
should take on an immediate basis to safeguard the K.K.P: Stainless steel is known for its corrosion resistance,
interest of the producers? mechanical strength and formability, fine lustre, hygiene,
K.K.P: Government has already laid the foundation for recyclability etc. Therefore, it finds wide variety of
economic revival with a set of reforms, which will bear applications in Metal products, Process Industry and
fruits in time to come. We expect some more support for Engineering, Architecture Building & Construction,
the MSMEs, which constitute about 40% of stainless‐steel Automotive Railway & Transport, and many others. Indian
industry. Next priority is market growth by increasing Stainless‐Steel Industry has been doing well over the years
infrastructure spending. Other measure can be making life and consistently registering higher average growth
cycle cost analysis mandatory for evaluation of all public compared to rest of the world. But we have a long way to
projects to build sustainable infrastructure. We also need go considering our low per capita stainless steel at 2.5 kg
to improve industry's competitiveness by making raw against world average of 6 kg. in this context, I will list
materials and input costs low, and last but not the least is some new promising areas arising out of recent policy
prompt action on unfair trade practices. announcements, which can boost growth, such as‐ a)
S.S: Can the anti-China sentiment be a boon to Indian Agriculture and farm sector reforms can increase stainless
Stainless Steel Producers? steel consumption in food storage and processing,
fisheries, and dairy industry, b) Opening of strategic
K.K.P: I think decisions should be based on facts and not on
sectors of defence and aerospace can push demand in this
sentiments. It is a fact that an anti‐subsidy investigation
area many times, c) Energy sector, both renewables and
found in 2017 many non‐WTO compliant subsidies in flat
others are another area for stainless steel to grow. d)
product imports from China and CVD @18.95% was
Infrastructure and construction will continue to remain a
imposed. It is a fact that cases of circumvention of duty has
focus area where stainless steel can provide long term
been detected by routing Chinese origin material through
sustainable value. Public transport sector will continue to
third countries, abusing rules of origin, for which
be a fast growth area for stainless steel. e) Expansion of
Government has taken action. It is a fact again that
medical and health services provides further potential for
recently investigations have found hidden subsidies in flat
growth of stainless steel. So, we see faster growth of
products import from Chinese companies in Indonesia and
stainless steel in traditional as well as new sectors in next 5
CVD has been imposed. All these measures are aimed at
years.
providing level playing field for domestic stainless steel
industry.

NTPC signs JPY 50 billion agreement with JBIC

In the first funding for NTPC Ltd. under Japan Bank for Interna onal
Co‐opera on (JBIC)'s GREEN or Global Ac on for Reconciling
Economic growth and Environment preserva on ini a ve, India's
largest power producer entered into foreign currency loan
agreement with Japanese Government's financial ins tu on for
JPY 50 billion (approx. USD 482 million or Rs. 3,582 crore). JBIC will
provide 60% of the facility amount and the balance will be given by
commercial banks (viz., Sumitomo Mitsui Banking Corpora on, the
Bank of Yokohama Ltd., the San‐In Godo Bank Ltd., the Joyo Bank
Ltd. and The Nanto Bank Ltd.), under JBIC guarantee.
The facility is extended under JBIC's outreach for projects, which ensure conserva on of global environment. The
loan proceeds shall be u lized by NTPC for funding its capex for Flue Gas Desulphuriza on (FGD) & Renewable
Energy projects. FGD, substan ally reduces the SOx emission in the flue gases of thermal power plants and is a
cri cal step towards environmental sustainability.
The loan agreement was signed by Shri Anil Kumar Gautam, Director (Finance), NTPC and Mr. TANIMOTO
Masayuki, Managing Execu ve Officer, Global Head of Infrastructure & Environment Finance Group, JBIC through
video conferencing.

OCTOBER 2020 20