Monday, September 18, 2006

Well, Here Goes Steel For Rural India!

As it is, India's per capita steel consumtion is quite low; it is only 30 kgs as against the world per capita consumtion of 150 kgs per annum.The urban-rural divide is further hightened by the figures of 77 kgs for the urban customers and a measly 2 kgs for the rural masses. Rural India constitutes 70% of the country and if the domestic consumption has to be raised to the level of 90 million tonnes by 2019-20 as per the National Steel Policy, something drastic has to be done for improving the rural market.
Steel is a commodity not used in the same way as other commodities of daily consumption. Unless steel finds customers in large numbers for house construction, silos for food storage, tanks for water storage, construction of roads & bridges and platforms for shelter during natural disasters and the likes, the higher per capita consumption of steel in rural India will remain ever elusive.Realising the potential for growth in this area, the steel ministry has been urging steel manufacturers to make steel available to the rural customers at their doorsteps.
The manufacturers have reportedly agreed, in a meeting with the steel ministry officials held on 8th September, to supply steel to the rural market. They will take care of the logistics and bear its costs too. This will make steel cheaper for the rural customers by Rs600 to Rs1000 ($18 to $30) per mt. It is anticipated that the rural per capita consumption will double to 4 kgs by the year 2019-20.
So the moment of truth has arrived!
It's time for Bhangra and Dandia. Is it not?

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