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IIMB Management Review

Document Type

Article

Abstract

In India, the iron and steel industry in general occupies an important Position among the manufacturing industries. The priorities attached to this sector can be explained from the Second Five Year Plan document which mentioned that the expansion of iron and steel industry has obviously the highest priority than other industries because the tempo of progress of the economy. Hence, Second Plan onwards the industry has made a rapid stride in our economy. A number of Integrated Steel Plants (ISPs) in the public sector have been set up to boost up production. Today these ISPs contribute a significant portion of industrial output. For example, in 1984-85 it had produced 10.71% of the total output of the manutacturing sector. Moreover, its contributions in terms of value added as well as employment were 8.13% and 7.81% respectively. However, among the Basic Metal Industries the output of iron and steel constituted around 90% of the gross output, value added and employment. Further, in terms of total investment in the manufacturing sector it is one of the most important industry. Over the years there has been a massive injection of investment in the public sector plants. A review of the plan outlays of steel in the Public Sector reveals that steel enjoys the second highest share in the Second Plan (i.e. 7.49%) when three new steel plants were built, and the highest in the Third Plan (i.e. 10.18%), when Bokaro Steel Plant was taken up. As a percentage of the total plan allocation, the investment in the public sector steel industry was 0.88% during the First Plan, which increased to 4.5% in the Second Plan and 5.29% in the Third Plan. Since then, there has been a progressive fall in the share of steel sector with the Seventh Plan allocation being only 1.8% of the total plan outlays and 3.56% of the public sector allocation.

Publication Date

12-1-1990

First Page

83

Last Page

99

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