Market Development Project

INNOVATIVE USE OF STEEL:

RESEARCH PROPOSALS UNDER MARKET DEVELOPMENT PROJECT

Introduction

From the 10th largest to the 3rd largest crude steel producing country in the world,
Indian steel industry has come a long way, adjusting itself, in the process, to
changing economic scenario and global standards, both. The focus has been on
technological up-gradation, better environment management, improved
manufacturing practices, control of cost, quality, design and technological
innovations for international competitiveness. At the same time, the stress has
been on Research & Development, carried out mainly by the leading steel plants
themselves, National Research Laboratories, Academic Institutions etc.

All these are of critical importance as the Indian steel industry is poised for
significant growth. While the supply side is expected to grow phenomenally in the
coming days, with the commencement of projects now in the pipeline, the demand
growth is expected to be explosive, in tune with an expected 10% growth of the
Indian economy. Again, the current level of per capita steel consumption (around
48 kg) is an opportunity for furthering growth. This can be done by meeting the
local demand and also on devising means to enhance the steel consumption
potential of rural India. Simultaneous is the need to tap the growth potential of the
key end-use segments through enhanced use of steel in varied and newer
applications and markets and what would aid this process is a better understanding
and adaptation of technology, increased R&D efforts and focused promotional
measures. The export market too offers, important and enormous prospects.

Steel Development Fund and Market Development Projects

The Union Cabinet in its note in July 1997 had decided that an amount of Rs 5
crores per annum may be spent on projects intended to develop the market for
steel. Popularly referred to as Market Development Projects, these were essentially
for popularizing steel usage in the country through innovative application / use of
steel in different areas. Accordingly, an Internal Screening Committee was
constituted for the monitoring of such projects. However, with time several factors
including the extreme market fluctuations that industry had to face led to a drying

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up of suitable projects that could be granted approval and as a fall-out, the

functioning of the Committee became irregular.

Current Scenario : Proposal to set up an Evaluation Committee

Indian steel industry is now in a high phase of growth and interactions reveal
considerable interest about the need for developing markets that could be
implemented and carried out on a holistic scale. For, in view of the past trends, it is
now increasingly felt that future growth has to be backed up by focused measures
to boost steel demand and develop markets in a bid to ensure that Indian steel
remains internationally competitive and profitable enough to attract fresh
investments. In this backdrop of renewed industrial vigour, Ministry of Steel,
Government of India in its role as a facilitator for Indian steel industry, is keen
about the need for market development projects that could be monitored and
implemented on a holistic scale. Accordingly, it has approved a proposal initiated
by Joint Plant Committee (JPC) to set up an Evaluation Committee, the details of
which are given below.

Details of the Evaluation Committee

Constitution:

i. Executive Secretary, Joint Plant Committee (JPC) Coordinator/Convener

ii. A Representative from Marketing Deptt. of Steel Authority Member

of India Ltd (SAIL)

iii. A Representative from Marketing Deptt. of Rashtriya Ispat Member

Nigam Ltd / Vizag Steel Plant (RINL/VSP)

iv. A Representative from Marketing Deptt. of Tata Steel Ltd Member

v. A Representative from MECON Ltd Member

vi. Director-General, Institute for Steel Development & Member

Growth (INSDAG)

vii. Chief Economist, Economic Research Unit (ERU), JPC Member

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It may be noted that presence of two-thirds of the members would form the
quorum for every meeting of the above Committee.

Terms of Reference:

 The Evaluation Committee would receive and scrutinize proposals from all
stakeholders of industry.
 The Evaluation Committee would submit its recommendations as to the
acceptability of a particular project proposal to Joint Secretary to
Government of India (who is also the Secretary, SDF Managing
Committee), who will then submit it for consideration / approval of
Secretary (Steel) (who is also the Chairman, SDF Managing Committee).
 The Evaluation Committee would monitor the progress status of the
implementation of approved projects and report to Ministry of Steel.
 The Evaluation Committee would also obtain views of experts in allied
fields, hold meetings/interaction with concerned industry representatives etc
and any other job as deemed relevant in conducting their duties and
responsibilities.
 The Evaluation Committee would monitor the impact of a project in terms of
market development would be decided by the Evaluation Committee. In
doing so, the Evaluation Committee should keep in mind the conditions
prevailing before and after the implementation of the project with reference
to factors like (but not limited to):

a) actual user conditions / requirement fulfillment

b) effect on costs
c) impact on steel usage / consumption level
d) impact on export level
e) effect on logistics/distribution system

 The Evaluation Committee would ensure the receipt of all the relevant
documents related to the implementation of the project and based on
satisfactory assessment of the same, would seek the approval of Secretary
(Steel), Government of India for release of funds.

Joint Plant Committee (JPC) would act as the Secretariat of the Evaluation
Committee.

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Key Aspects of Project Proposals

Scope:

Every project submitted under the scheme need clearly to spell out how the
implementation of the proposed innovative use of steel will lead to a development
in the domestic (Indian) market for iron and steel specially in terms of an increase
consumption of steel/lead to innovative use of steel. Keeping this in view, the
scope of a project may include the following, among others:

 Increase in consumption of steel

 Enhanced efficiency in use of steel
 Lead to greater substitutability (other materials by steel)
 Export promotion

Eligibility for application:

The minimum requirements for an institution to be eligible to apply shall be:

a) the organization should be nationally-recognized

b) it should have a defined and currently-active Marketing / Research &
Development Department/Cell/Wing etc
c) the said Departments/Cells/Wings etc should have sufficient personnel to
carry out its designated work
d) the organization should possess a proven track record of completed and
implemented/running projects in the field of innovative use of steel in
any established area of application or any other activities pertaining to
promotion of steel usage
e) the organization should have a demonstrable record in areas of research
articles and publications related to R&D in iron and steel
f) there is no bar on ownership i.e. both public and private sector
organizations are eligible to apply

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 Market Development Project

Method of application:

The applicants would be industrial units, national research organizations, academic

institutions, research bodies, R&D organizations both in public and private
sectors who can submit the proposal(s) either singly or jointly (if work is through
an associated agency). Proposals, which will have support from industry or others
in the form of funds/services/kind, will be preferred. The applications as per
specified guidelines (enclosed) may be submitted in 7 copies to:

Executive Secretary
Joint Plant Committee, Ispat Niketan
52/1A, Ballygunge Circular Road, Kolkata – 700019

Email: jpc.kolkata@gmail.com

Funding:

Release of funds is contingent upon satisfactory production of all relevant

documents to the Evaluation Committee and may be released from the SDF after
approval of Secretary (Steel), Government of India. Details of funds released may
be submitted for ratification by SDF Managing Committee in its regular meetings.

The beneficiary organization would have to submit a progress report along with an
Utilisation Certificate of funds, released at regular intervals as decided by the
Committee from time to time.

Dissemination of Findings

As far as dissemination on the findings/outcomes of the project is concerned, the

same may be through the organization of a workshop by the beneficiary, as per
directive of the Ministry of Steel. An Utilisation Certificate is to be submitted by
the beneficiary at the end of the workshop.

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 Market Development Project

INNOVATIVE USE OF STEEL:

RESEARCH PROPOSALS UNDER MARKET DEVELOPMENT PROJECT

- GUIDELINES

1. General

a. Name and address of the organization including telephone, fax no, email address.
b. Details of key contact persons including telephone, fax no, email address.
c. Brief history of the organization including nature of activities, products being made,
capacities, related collaborations, achievements, capabilities, etc. (latest annual
report and company brochure may be given)
d. Details of the manpower available (give separate details of Executive, Staff level
and collaborating agencies, if any)

2. Research Proposal details :

(a) Title of the proposal

(b) Abstract of the proposal
(c) Details of the proposal including :

i) Scope – specification of the market/sector chosen

ii) Objective – to be spelt in detail how the implementation of the proposal would lead
to development in the market chosen
iii) Results of Feasibility Study done to validate the need of the project
iv) Salient features of the project – specification of the methodology adopted, the tools
chosen, the analytical framework adopted, the manpower required etc.

v) Status of similar work done in national/international area and why this proposal is
an improvement over existing ones (if any)
vi) Details of IPR/Patents held (if any)
vii) Detailed Action Plan for implementation showing:

 Activity sequence and time schedule for each activity(bar chart)

 Phasing of expenditure
 Stages of activities in the project

viii) Consultancy arrangements etc. if any.

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ix) Details of financial outlay including support required

x) Clarification (backed by documents) as to whether :

a) The project is tied up with a User Industry? If yes, the extent of commitment –
the role and scope – of the User Industry in the project.
b) The proposal has been submitted to any other funding agency currently or in
the last 5years. If so, what was the outcome of the same.
c) Any collaborating agency is involved and if yes, a break-up of outlay at both
executing agency and collaborating agency.

3. Bio-data of the Project Coordinators and other personal/experts involved in the project.

Signature of Chief Executive/Director General / Director (Commercial)

Note :

a) The above format is only for guidance and individual project proposals may be prepared
flexibly taking the points into account.
b) The project proposal should be submitted in 7 copies.
c) Latest Annual Report/Balance Sheet of the company may be enclosed.
d) In case of joint proposals with other agencies, the proposals should be jointly forwarded by
executing agencies and collaborating agencies duly signed by Chief Executives/Directors
of the respective organizations.

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