"I am delighted to be here today at Burnpur to begin work on the expansion of IISCO's steel plant. Burnpur occupies a historic place in the saga of the Indian steel industry. It was here, at Kulti, that the first modern iron-making unit in the country was started more than a century ago. It was here, in Bengal, that the industrialization of India began. We have come a long way from those modest beginnings. India is once again marching ahead in the field of industry. Today, we have a manufacturing sector which is growing at an unprecedented rate and the prospects for the steel industry mirror the excellent prospects for the country as a whole.

West Bengal was in the vanguard of India's initial charge for industrial development. There was time when the Bengal - Bihar coal and steel belt was expected to become the Ruhr Valley of India. The State, however, has fallen behind the more developed parts of the country on the industrial front in the last quarter century. It cannot continue to slip up in this regard. It must join the march of progress and benefit from the rapid economic growth of the country. The time has come for a new era of industrial development in West Bengal. I hope the expansion of this steel plant here in Burnpur will mark a new beginning for West Bengal. West Bengal needs modern industries, and the jobs that come with it. It needs a process of industrialization which is employment intensive, welfare enhancing and on the whole, humane and just. Every section of society should benefit from the spin off benefits of industrialization.

The growth of the iron and steel sector is a fair indicator of the industrial progress of a nation. By this measure, we still have a long way to go in catching up with the newly industrializing economies of Asia. Today, the steel consumption in China is ten times that of India. We have to move fast, move quickly and move efficiently to catch up with our neighbours in East Asia. It cannot be business as usual any more. We have to give up our "chalta hai" laid back attitude.

It is indeed ironic that an Indian businessman is today called the "Steel King of the World". Lakshmi Mittal started his business career here in West Bengal. Today, his group is the world's largest steel producer without producing a kilo of steel in India! Why is it that so many Indians do so well when their enterprise and creativity is allowed to blossom? Why is that they choose foreign shores for growth and expansion rather than their home turf? Why does Lakshmi Mittal or Ratan Tata have to buy foreign companies to establish a global presence and expand steel capacities when our per capita consumption of steel is so low and when there is so much opportunity here? We need to introspect on this deeply. Is it to do with our industrial environment, our procedures, our bureaucracy and red tape that entrepreneurs shun domestic opportunity.

The time has come for us to take a hard look at what we must do to build a stronger India. India's strength is not determined by the size of our armed or in the number of nuclear weapons we have. Our strength lies in the capabilities of our people; in the opportunities that we can provide for them to demonstrate their skills and excel in enterprise; in our ability to build a modern economy that can provide jobs for all. Our strength will lie in the competitiveness of our industry; in our ability to produce enough food for our people; in our ability to generate enough electricity for our needs. Our strength will lie in our ability to create a knowledge-based economy with full literacy; in our ability to rid our nation of poverty, ignorance and disease. These are the challenges before us. We need steel in our resolve, as much as we need steel in our economy.

Our current low level of steel consumption is, however, an opportunity. As our economy grows faster, as infrastructure development moves forward and as agriculture modernizes, the demand for steel will rise. The challenge before us is to ensure that the steel industry grows not only to meet this demand but also becomes a major exporter.

However, if we have to meet this demand efficiently and at reasonable cost, the steel industry must modernize. In steel manufacturing, we have certain strategic advantages. Good quality iron ore is available domestically. Our manufacturing costs are internationally competitive. The increasing number of global steel majors who have announced plans to set up steel-making facilities in India gives a fair indication of the comparative advantages of manufacturing steel in our country.

In line with our overall plans for the country's economic growth, the Government announced a National Steel Policy last year with a production target of 110 Million Tons of steel by 2020. However, it looks as if the target would be considerably surpassed. I understand that present assessments indicate that our steel-making capacity is all set to double from the present level of around 40 Million Tons per year to about 80 Million Tons by the year 2012.

However, the projected expansion of our domestic steel market as well as our manufacturing advantages should not lull us into a sense of complacency. It should not prevent us from becoming internationally competitive. It is well known that the steel industry is periodically subject to price cycles and the only way to stay consistently profitable is to ensure that the Indian steel industry is benchmarked with the most globally competitive producers.

The public sector has always had a pride of place in our steel industry. These are the "temples of modern India" that Pandit Nehru spoke of. I am happy to note that the Steel Authority of India Limited has embarked on an ambitious expansion plan to meet the country's projected steel requirements. I understand that SAIL is planning an investment of around Rs. 37,000 crores for enhancing its annual production capacity of hot metal to 22.5 MT by the year 2010. The investment of over Rs 9,500 crores here at the IISCO Steel Plant will create large new capacities and generate new employment opportunities. It will greatly help in the industrial regeneration of this potentially vibrant region.

I am aware that IISCO has been going through difficulties in the past particularly on account of its obsolete technology, ageing equipment and lack of systems modernization. Hence I am glad to note that the present expansion proposal will focus on improving productivity factors like labour productivity, blast furnace productivity and energy consumption for attaining parity with international benchmarks. Our public sector producers like SAIL have to function on the frontiers of technology if they are to stay predominant in an era where private producers are extremely aggressive and competitive. We will do whatever is necessary to make our public sector steel plants globally competitive and retain their pride of place in our industrial firmament. I am sure they will respond by investing in improving quality, efficiency and cost effectiveness of existing plants.

The UPA Government is committed to the modernization and expansion of our public sector enterprises. We have an effective system for examining the viability of each and every loss making public sector unit with a view to identifying its long term prospects for rehabilitation and growth. There is no blind disinvestment strategy without examining viability. The government has provided large amount of funds for reviving many units such as Bridge & Roof, Heavy Engineering Corporation, Braithwaite & Company, Cement Corporation of India, and Bharat Opthalmic Glass. Units in West Bengal have been a major beneficiary of our efforts as many units in the state have been put on the revival path. The IISCO plant is an example whereby we are exploiting its synergies with SAIL and are investing in its future growth. I am confident that many more PSUs will revive as a result of our efforts. I once again reiterate our commitment to the long term growth and viability of the public sector.

I am aware that many of you have remained dedicated and committed to IISCO through its years of trials and tribulations. I am, therefore, very happy to be here today with all of you and join you now in your moment of joy. The launching of the modernization and expansion project of this plant gives me immense happiness. Let this be the dawn of a new era of industrialization of Burnpur and West Bengal. I wish you all success in your future endeavours."