Seven Steel companies sign agreement with Ministry of Steel for setting up Rs 200 crore fund

8 April 2015

Seven major domestic steel companies have joined hands with the union steel ministry in a first of its kind initiative to boost R&D in steel sector. The companies include Tata Steel , JSW Steel, JSPL, RINL , SAIL , NMDC and Mecon. Together, they have entered in to an agreement to set up a Rs 200 crore fund. While half of the amount, or Rs 100 crore, will come from the ministry's Steel Development Fund, the rest will be contributed by the steel companies.

The agreement was signed in the presence of Narendra Singh Tomar, Minister for Steel & Mines on Monday. The setting up of Steel Research & Technology Mission of India (SRTMI) is a new beginning in the R&D in steel sector of the country, an official release said.

While speaking on the occasion, Shri Narendra Singh Tomar stated that the joint initiative of steel industry and government will definitely yield results, if same enthusiasm and spirit is maintained at all times. In a youth rich country like India, steel industry can play a major role in creating employment, he added.

The SRTMI aims at increasing investment on Research & Development in the steel sector from present level of 0.2-0.3 % of turnover progressively towards the international benchmark of 1-2 % of turnover.

SRTMI was conceptualised last year by a high level Task Force set up by the Ministry of Steel. It will be governed by a Governing Board of CEOs of steel and associated companies, domain experts of national and international repute, and nominee from Ministry of Steel. There will be an Oversight Committee under the Chairmanship of Secretary (Steel) to periodically assess its performance.

SRTMI will carry out R&D in priority areas of national importance covering best usage of available raw materials & conservation of natural resources, optimum energy conservation & minimum emissions, innovations and in-house development of design, engineering & manufacturing facilities of key steel plant equipment.