~We have gathered here today to award the Prime Minister’s Trophy for the best Integrated Steel Plant in India for the Year 2000-2001 to the Tata Iron & Steel Company Ltd. My hearty congratulations to the management and workers of Tata Steel. You have shown that TISCO stands not only for excellence but also for sustained excellence in the field of Iron & Steel.

Tata Steel is the pride of India because it is one of the pioneers of indigenous industrialization in our country. The fact that it would soon be celebrating a century of its existence shows the long road it has traversed.

It was not an easy road. Difficulties started even before it was born. The colonial rulers were none too pleased that an Indian entrepreneur had the audacity to think of setting up a steel plant. It is said that when Jamshedji Tata planned to manufacture steel rails in his mill, the then chairman of the Railway Board, an Englishman, contemptuously challenged: ~Why, I will undertake to eat every pound of rail they succeed in making.~

We do not know how many pounds of steel he succeeded in eating!

What we do know is that Tata Steel has succeeded in growing from strength to strength, and has transformed itself into a modern and globally competitive company.

What pleases me especially is that Tata Steel has not only continued to succeed in a highly competitive business, but it has done so by continuing its social obligation. Even after several decades of its setting up, Jamshedpur continues to be one of the model industrial townships anywhere in the world, with strong symbiotic relationships to the broader local community.

Friends,

We all know that our steel industry was one of the first to benefit from economic liberalization in the country in the early 1990s. Licensing was abolished. Prices were decontrolled. Hurdles in distribution were removed. Post 1990, a large number of steel plants came up in the private sector. The Government also supported free inflow of foreign capital, technology, equipment and raw materials. As a result, the share of the private sector in our crude steel production has gone up considerably. Today India has become the 8th largest steel producer of the world.

Let me cite another fact. Indian steel industry has been a major beneficiary of global markets. Last year was a bumper year for our steel exports. Our exporters realized higher value in international as well as domestic markets. This helped greatly in removing the recession in our steel industry.

Global competition has helped the steel industry in another way. Some of the steel plants in the country have not only adopted international best practices and benchmarks in terms of quality and costs, but have also improved upon them. This has been possible because these companies have systematically planned for global competition and made it a part of their organizational culture.

I mention this to underscore how India’s carefully formulated reforms have indeed benefited Indian industry. Every once in a while, we hear voices that criticize economic reforms and paint a doomsday scenario for the Indian economy. Their criticism is not supported by facts. I would like to assure one and all that protection and promotion of the interests of the Indian agriculture, Indian industry, and Indian service enterprises, and creation of employment by them is the primary aim of economic reforms.

Of course, we know fully well that globalisation is not without its threats and challenges. We are alert and active whenever our industry is subjected to unfair measures in global markets. Which is why, the Government has been intervening strongly in support of the Indian steel industry in the case of the difficulties that it has been facing in some markets in the name of anti-dumping.

Our reform-oriented policies and programmes, especially in the infrastructure sector, are designed to provide a boost to the steel industry, as also to other industries. We have given a major thrust to the development of highways, railways, airports, seaports, housing, and power. Our nationwide rural roads programme will accelerate the growth of rural economy. We also want to modernize our entire food chain by developing proper storage, transportation and distribution facilities. All this will enlarge the domestic market for a whole host of industrial products, including steel.

It is our endeavour to see that domestic consumption of steel rapidly increases. Steady rise in domestic demand for steel will also enable the Indian steel industry to meet the uncertainties inherent in the cyclical nature of global demand for steel.

Therefore, I call upon our steel producers to focus on the changing needs of both domestic and international customers and produce the right kind of materials for every segment. They should intensify the search for new and unconventional markets. They should especially focus on high-value steel products in international markets. I am happy to note that, already India is emerging as a global leader in the outsourcing of automobile components.

Continued attention to R&D is critical for sustaining the industry’s growth momentum. The Government is providing financial assistance from the Steel Development Fund to supplement your R&D activities. I urge the industry to take full advantage of this facility and undertake research projects for process and quality improvement, energy efficiency, and development of new products.

Protection of the environment is a major concern for our country. It cannot be neglected, nor can it be treated as a peripheral issue, in our drive for rapid industrial growth. Our aim has to be sustainable development – that is, development without jeopardizing the well-being of the coming generations. I am happy that many integrated steel pants in India have been doing well in this regard. However, more needs to be done.

Before concluding, I once again congratulate the management and the employees of Tata Steel for winning the Prime Minister’s Trophy. I also thank the Ministry of Steel and the steel fraternity for continuously striving for the betterment of the steel industry in the country.~