News Makers 14 September 2019 STEELWORLD I ndian steel industry is facing some challenges amid the ongoing trade war between the US and China, according to Union Steel Minister Dharmendra Pradhan. The minister also noted that the global steel industry is facing the challenge of surplus production. Pradhan was interacting with reporters on the side-lines of two- day International Galvanising Global steel industry faces surplus output: Dharmendra Pradhan Conference event here. When asked if the local industry could face challenges amid the ongoing US-China trade war, the minister replied in affirmative. "It's facing," he said, without speaking further. According to official data, share of imports of finished steel from FTA countries such as Korea, Japan and Indonesia aggregated around 70 per cent of total imports to India in August 2019. Earlier, speaking at the conference, the minister also said that India will become top energy consumer in the world in the next two decades. "I don't know what is the finished product export quantity of (zinc products) to world market but I see being associated to petroleum sector for last five years that though we are importing crude oil, there is a huge scope for exporting petroleum products to the different part of world apart from our own market... today, in energy we are number three consumer in the world. In the next two decades, India will be the number one energy consumer of the world," he said. Speaking about the areas of energy consumption, Pradhan said, "It will be consumed in transportation, household electrification, but primary consumption will come from industry. Industries related to manufacturing, industries related to services, related housing, capital good product etc". G lobal companies such as BHP, Peabody Energy, and Glencore can now own coal mines and carry out related operations in India, with the cabinet approving 100% foreign direct investment under the automatic route in mining, processing, and sale. The move to fully open up coal mining to foreign players could help get latest technologies, reduce fuel shortages that have crippled the power sector, and boost economic growth by attracting fresh investment. It follows an earlier decision allowing commercial coal mining by private operators, ending Coal India’s monopoly. "There is a little slowing down of FDI worldwide so we have taken some significant decisions; 100% FDI for coal mining and all related Coal sector gets nod for 100% FDI processing activities will be allowed under the automatic route," commerce and railways minister Piyush Goyal said at a media briefing. “The FDI has been allowed for coal mining activities including associated processing infrastructure subject to provisions of Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957 as amended from time to time, and other relevant acts on the subject,” a statement issued after a cabinet meeting said. Associated processing infrastructure would include washery and facilities for crushing and coal handling, it said. Currently, 100% FDI under the automatic route is allowed for coal and lignite mining for captive consumption by power projects as well as iron and steel and cement units. FDI is also permitted for setting up processing plants like washeries subject to the condition that the company shall not do coal mining or sell the washed or sized coal in the open market. They must, under the existing rules, supply the processed coal to those who are supplying raw coal to them.