FEBRUARY 2020

Printed and Published by Ms. Sakuntala C.Chanda on behalf of Spark Economy Research Centre, 71/3B, Purnadas Road, Kolkata - 700029

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Dr. Narendra Kumar Nanda, M.Tech, Ph.D

Sushim Banerjee, Director General - Institute of Steel Development & Growth

Nirmal Chand Mathur, Stainless Steel Expert

Shoeb Ahmed, Ex-Director Commercial - Steel Authority of India Limited

Pritish Kumar Sen, Ex - Tata Steel

Debashish Dutta, Asst. General Manager - Institute of Steel Development & Growth

Ishwar Chandra Sahu, Ex-Executive Director I/c SAIL, IISCO Burnpur

Rakesh Kumar Singhal, Consultant - Steel Research Technology Mission of India

Abhijeet Sinha, National Program Director-ASSAR

Divya Kush, President of The Indian Institute of Architects Member (Alt.), Council of Union of International Architects

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C O N T E N T S

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EDITOR’S NOTE

SECTION : REPORT

Union Budget 2020: Impact Analysis By Acute Ratings & Research Limited

Budget 2020 - Views from the Industry

‘Concept of the circular economy, based on 16‘Reduce-Reuse-Recycle’ - 7th MRAI International Material Recycling Conference at New DelhiBy Sakuntala

World Steel Recycling in Figures 2014 – 2018 28Steel Scrap – a Raw Material for Steelmaking

Process Control on Android System 'goMobile' By Mr. Prasanna Dandekar - Deputy Manager & Mr. Sunil Kamat - Company Manager,John Cockerill Automation

“Children are the future and it's our responsibility to 23 leave the planet healthier and cleaner for them”Mr. Sandeep Patel, CEO, NEPRA

“Produce Less, Consume Optimum” 31Mr. Vidya Rattan Sharma, Managing Director, Jindal Steel & Power Ltd.(JSPL Group) in discussion with Sakuntala

Communicate & Motivate 36Turn Around Mantra for Braithwaite

Mr. Yatish Kumar, Chairman cum Managing Director Braithwaite & Co. Ltd. in discussion with Sakuntala

“It is not the quantity of steel that gives strength 39 but it is in the way, it is put to structural use”

Mr. Asit N. “Shen” Sengupta, M. Arch (MIT), M. Urban Design (Harvard),MRAIC (Life Member), AICP (Life Member), Member COA

ARTICLE

INTERVIEW

2

By Bureau of International Recycling Ferrous Divn.

45

11

SECTION :

SECTION :

DATA BANK

Steel Market Price 51

World Steel Figures 52

VOL 29/M7

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Is 2020 Union Budget paves the way for a US$ 5 Trillion economy?

With the announcement of the Union Finance Budget for fiscal 2020-21 in

the Parliament, it is seemingly clear that the government is upbeat on

consolidating its existing financial measures. While tax structuring gets

reshuffled with an intention to increase cash in common people’s hands

prima facie, employment generation remains elusive in the Budget. Even

though there are certain takeaways for industries in general, Budget 2020

is short of evoking a comprehensive nod by industries. Given the context

of macro challenges that the economy faces and the target of reaching $5

trillion by 2024, the budget does promise some impetus to the sector but

more needs to be done. Faced with the challenge of revving up India’s

economic slowdown, Finance Minister took a more measured approach

in her second budget providing an impetus to only a few key sectors which

translates to a moderate stimulus for the manufacturing sector.

Contrary to last year’s big-ticket moves in infrastructure, including the Rs.

1.03 billion National Investment Pipeline, the major announcements in

infrastructure focused on the transport sector. The government

announced 100 airports under the UDAN scheme by 2024 and an

accelerated approach to the development of highways, including the

strategic Delhi-Mumbai and Chennai-Bengaluru expressways. While this

move is expected to benefit all infrastructure-related industries, including

steel, cement, capital goods, and Maintenance, Repair and Overhaul

(MRO), efficiency in connectivity is also expected to create a short term

ripple effect in the automobile sector and bring down costs in logistics-

heavy sectors. One key highlight here, however, has been the focus on

renewable energy, especially the solar sector. This is driven by energy

requirements in rural areas as well as for setting up of solar capacity by the

Railways, which will push growth in solar panel manufacturing. The

announcement of five new smart cities is also expected to push growth in

the allied sectors. Infrastructure development will help create more

cluster developments along the way.

Continuing the last budget’s focus on affordable housing, tax benefit on

affordable housing loans was extended by a year to loans sanctioned till

March 2021. This will push more first-time homebuyers to enter the

market.

Additionally, the date of approval of tax holiday provided to developers of

affordable housing would also be extended by a year. This would

encourage more and more developers to transition into affordable

housing as the luxury segment is already reeling due to overexposure and

under consumption.

Editor’s Desk

Given the context

of macro challenges

that the economy

faces and the target

of reaching $5

trillion by 2024, the

budget does promise

some impetus to the

sector but more

needs to be done.

Sakuntala Chatterjee Chanda

Editor & Publisher

FEBRUARY 2020

Though the large scale picture is predictable with the promises of the Government, the microscopic fine print on many of

the policies is still waiting. There have been no industry-specific policies for any industry, let alone the real estate and

construction, that will buoy up the sagging market morale. The demand of the real estate industry for an industry status

still continues to elude the industry as a whole. Had real estate earned the ‘industry’ status, builders would have been

able to apply for loans at a lower interest rate, cutting the cost of construction of projects and boosting housing sales

across the country. The construction industry has now a great new opportunity to explore their skills in infrastructural

developments, taking India ahead with state of the art transport systems. However, the real estate and real estate

construction segments have nothing to gain in this current budget. The crisis created due to the policy restructure of 2016

(RERA, GST and NBFC’s) has still not eased from this segment and it does not look like it will in the near future.

A concessional corporate tax rate of 15% to new domestic companies in the manufacturing and power sector is a step

that will certainly encourage the establishment of new companies in the manufacturing sector and boost the ‘Make in

India’ program. The benefit to the power sector is also likely to slash the power rate, indirectly benefitting the

manufacturing sector.

The automotive sector which has been reeling under the low sales realization for few quarters, returns empty-handed as

its demands were mostly unmet. The automotive industry has been demanding a slash in GST rate and waving of customs

duty on lithium batteries for EVs to promote EV manufacturing in the country. Currently, battery costs almost 40-45% of

the cost of EVs due to increased import duty.

The government, however, has other plans regarding EVs. While it has budged from slashing imports on batteries, it has

increased import duty on Completely Built Units (CBUs) in both EV and conventional vehicle categories to promote

manufacturing in the country. While increased import duty on CBUs will curb imports, retention of exiting duty on EV

batteries will continue to keep EV prices higher at a time government is planning to make mass adoption of EVs. This is

even inevitable when the government has announced an outlay Rs 1,700 billion for transport infrastructure to construct

2500 access control highways, 9000 km eco-development corridors, 200 coastal and port roads, 2000 km strategic

highways, Delhi-Mumbai expressway, and 2 other corridors will be completed by 2023.

MSMEs are an aspirational block with a hunger for growth - contributing to 6.11% of the manufacturing GDP, 33.4% of

manufacturing output, 40% of overall exports and 120 million workforces. Accelerated growth of the MSME sector has

the potential to set India on an upward trajectory of growth. The Union Budget 2020 focuses on creating a coherent and

viable policy framework for lending to the MSMEs, including making it a core business activity for banks. The extension of

restructuring NPAs for one more year is the right move in this direction. Policy hindrances in linkages between platforms

should hopefully be addressed now. The Government has thereby pre-empted loans disbursed under the MUDRA

scheme from turning into NPAs, which have in fact doubled within the last one year. The government now must avoid a

target-driven approach in loan disbursal under this scheme.

Currently, only businesses having a turnover of more than Rs 10 million are required to get their books of accounts

audited by an accountant. In order to reduce the compliance burden on small retailers, traders, shopkeepers who

comprise the MSME sector, the FM has proposed to raise by five times the turnover threshold for audit. This hopefully

should provide succor to a huge number of MSMEs.

Overall, the Budget provides a set of measures to help progress across various areas of the economy. The industry is

hoping that this will improve the trust within the industry to get the economy’s spirits going.

FEBRUARY 2020