The government, says `The Economic Survey' was taking necessary measures for revival of the industry, hinting at the tariff concessions the industry is banking on. The Centre has already exempted seven inputs crucial in steel making, like ferro alloys and nickel, from the special additional duty (SAD) on imports.

Struggling to cope with a `sluggish demand in steel consuming sectors, lack of investment in major infrastructure projects, cost escalations in input for iron and steel and increasing competition from abroad,' steel-makers at home cutback production by 1.5 per cent this year. Steel production declined to 14.84 million tonne in the first seven months of this year, from 15.07 million tonne during the corresponding period of the 1997-98 fiscal. Even in the last financial year, the stress of a slump in steel demand was showing on the industry. The growth in steel production was only 2.9per cent last year, compared to 6.2 per cent in 1996-97, when the cumulative output of steel companies at home was 22.72 million tonne.

Last year, steel production went up to 23.37 million tonne, but steel consumption only grew by 2.2 per cent to 22.6 million tonne. Even though the Survey is silent on steel consumption patterns this year, the offtake of steel is expected to be as low, if not lower.

The total steel production for the year should show a drop too, because steel companies that were saddled with huge inventories of unsold steel last year, are expected to go slow on production.

The production of pig iron showed a more drastic drop of 19.2 per cent in the first seven months of this fiscal. Between April and November, pig iron production dropped to 1.93 million tonne from 2.39 million tonne in the first seven months of the 1997-98 fiscal. The total pig iron production last year (1997-98) grew by 2.4 per cent, compared to 14.9 per cent in the previous year. The pig iron production in thecountry was 3.38 million tonne last year.