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Steel sector contributes 2percent to GDP in 2015-16

Steel sector contributes 2percent to GDP in 2015-16

The Indian steel sectorÂ’s contribution to overall Gross Domestic Product of the country was nearly 2 per cent during 2015-16.

The total exposure of the steel industry is about Rs 3.13 lakh crore, out of which Gross Non Performing Assets are about Rs 1.15 lakh crore. This works out to 36.94 per cent of total loan outstanding as of March 2016.

At the instance of the Centre, the RBI has also recently reduced the overall policy rates which are expected to get translated into reduction in actual lending rates. The RBI accorded a flexible refinancing repayment option, popularly known as the ‘5:25 scheme’ for long-term infrastructure projects, including steel, where total exposure of the bank is above Rs 500 crore. The apex bank has also brought in a Strategic Debt Restructuring scheme to help debt-ridden companies including steel companies.
This information was given by the Minister of State in the Ministry of Mines Sh. Vishnu Deo Sai in reply to a question in Rajya Sabha today.

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