``There are very early signs of a revival in the steel sector, with increase in production and exports,'' Basu told a meeting of the stainless steel industry. Basu said production of finished carbon steel in April-October 1999 grew 11 per cent over the same period last year and exports, domestic consumption and prices had also increased during the period.

``These are early signs and I am confident when we enter the next millennium, we will have a lot of things to cheer in the steel industry,'' he said. Steel ministry officials expect India's steel consumption to rise to 24 million tonnes in 1999/2000 (April-March) from 22 million in the previous year, mainly due to the increase in demand from the construction and automobile sectors. The country's finished steel output in 1999/2000 is expected to grow to 26-27 million tonnes from 24 million in 1998/99.

India annually exports about 2.5-3.0 million tonnes of iron and steel. Steel companies suffered huge losses and were saddled with large inventories in the past two years after domestic demand fell sharply following a slowdown in industrial growth.

``The worst is over,'' Basu told reporters on the sidelines of the meeting. Basu said the ministry expected a quick government decision on the financial restructuring of the loss-making state-run Steel Authority of India Ltd (SAIL).

Options pending before the government include a composite restructuring plan prepared jointly by different ministries and writing off a loan from the Steel Development Fund to make SAIL's balance sheet look healthier.

SAIL has asked the government to write off 75 per cent of a 60 billion rupee ($1.38 billion) loan it had taken from the Fund.

The company suffered a net loss of Rs 15.74 billion in 1998/99 against a profit of Rs 1.33 billion a year earlier.

Basu said the steel ministry had, in late October, submitted a modified proposal on SAIL's restructuring based on the advice given by the finance ministry. ``It (a government decision) is due any day now,'' Basu said.