The Joint Plant Committee constituted by the Union government has published a book on the Indian pig iron industry, which is now facing the threat of extinction. Of the existing 24 blast furnaces in the secondary sector, nine are shut down and two of these have remained shut for more than one-and-a-half years due to lack of orders.

Despite such a disheartening situation, another five units with a total capacity of about two million tonnes are coming up. How they will survive in today's market is a big question. Nevertheless, one point is very clear: If the Indian pig iron industry is to survive, the units need to make all out efforts to become competitive, both in the domestic and international markets.

What are the threats that the Indian pig iron industry is facing? Continuing devaluation of rupee is making import of coke costlier. Coke accountsfor about 70 per cent of the cost of production of hot metal and pig iron. The industry is highly dependent on importing this essential item of iron-making, which attracts excessive levies. Moreover, the fear of large-scale cheap imports of pig iron in a stagnating domestic market is looming large.

In terms of technology, the situation calls for a reduction of coke rate. This can be done by adopting well established technologies like coal dust and auxiliary fuel injection, high blast temperature, blast enrichment, high top pressure, hybrid pellet sintering, high pressure sintering, or by setting up mini sinter plants etc. Coal for coal dust injection is cheaper, available from a number of sources and attracts lower import tariff.As a long term measure, the industry should set up coke plants either by its own member units or as co-operatives or joint ventures. It can also set up joint collaboration foundries to source the requirements of international engineering majors.

As for the market, the industryshould make a greater effort to make the domestic market more stable by reducing supplies to it. This could be done not by reducing production, but by increasing exports. India at present has about five per cent share of the 15-million tonne worth of the international pig iron trade.

Rashtriya Ispat Nigam Ltd, the largest pig iron exporter of the country, is gradually withdrawing from the pig iron market and concentrating more on higher value-added steel products. Secondary producers can fill up the vacuum provided they are cost competitive. Trouble is, the trading price of pig iron in the international market is much lower than the production cost of pig iron in our country.

Financial institutions also have a very important role to play in the pig iron industry's survival. To help the industry become competitive, they can decide on a moratorium on the payment of loan interest and principal for two years and at the same time grant further loans on softer terms for upgradation of technologies.

Afterderegulation, pig iron-making has metamorphosed into a thriving and fast growing economic activity. This fundamental change in the character of the sector calls for an involved analysis and the present book has sought to provide the readers with an insight into the various aspects of the problem, and has tried to spell out the ills and prospects of this sector.

The first part of this two-part books elaborates the existing pig iron production facilities based on data furnished by the producers themselves and details various technical and commercial aspects of their companies. The second part contains articles by experts, which throws light on various technical, economic and commercial aspects of pig iron sector.

In his foreword, development commissioner for iron & steel and chairman of JPC RK Prasannan has claimed that the basic objective of the book "is to provide the reader with a comprehensive body of information and analysis compiled in one volume". This is no exaggeration, and this book would beimmensely useful to those who are in the industry or are interested in it.