Government And The Regulatory Interventions Construction Essay

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India is the 10th largest steel producer of the world. the huge Integrated producers like SAIL, Tisco and RINL have traditionally dominated steel production in India. Due to excessive Government controls as well as regulations, the Indian steel industry are broadly affected from the environmental aspect. A examine of the external macro-environment in which the companies operates can be articulated in terms of the following factors which detailed as below.

The role of the government is crucial, both as a supplier and as a customer, and also as the supra-environment for business, creating the rules for competition. It creates boundaries within which the steel industry must operate. In the case of the Indian steel industry, the government directly or indirectly controls the finance and many of the inputs - both raw material and services. The government has opened the field for private power plants. This is, in the long run, expected to improve the power situation in the country, to the benefit of the steel industry.

The government as a buyer is very important for the steel industry. The investment of government in infrastructure such as highways, rail, plants, power dams, ports etc are significant key movers for steel demand. In fact, government spending on infrastructure spurs the demand for long products, which is followed, with a time lag, by a demand for flat products. The demand for long products tapers off with a saturation of infrastructure development. This is expected to provide the necessary fillip to the stagnant steel demand.

Government regulations also provide protection to indigenous industry, or take it away. The recent liberalization of the economy has had mixed results for the Indian steel industry. On the one hand, they are free to import machinery6 and select raw material without the earlier procedural delays and checkpoints. On the other hand, they have had to continuously fight the dumping of cheap steel from around the world.

Environmental norms imposed by the government from time to time have a significant reflact, expected to be about 15% of project cost. Government regulations and concerns regarding discharges from steel plants could become one of the major forces driving development of new technologies.

Economic Factor

INDIA'S steel exports registered impressive growth in 2002-03. Provisional figures suggest that exports stood at highest level, against last five years. The steel industry was finally showing signs of recovery. Major producers started to export to capitalize on rising international prices and to boost bottom lines that had rusted in 1998-99. However, yet again, the good times comes for steel players. Indian economy become the strongest than it is comparing since last many years, it is absolutely good time for Indian steel industry.

The analysis shows that the Indian steel industry suffer the low productivity of labour but high capital, energy and transportation cost. The steps needed to enhance competitiveness of the Indian steel industry contain investment towards technology up gradation. There is also a vast scope for quality up gradation. Quality monitoring, inspection and control measure have also to be introduced at all stages of operation as well as technical discipline. computerization in process routes, improved maintenance practices, optimum capacity utilization, extensive automation in all possible areas as well as pollution control measures need to be implemented.

The Indian steel industry is at crossroad. It needs to step up values-addition to ensure that the wide fluctuations in HR prices are moderated with greater share of value-added products. Further, it has to modernize itself to bring down production costs.

China makes strong impact in Indian economy. Various steel majors are planning to exports in millions of tonnes to china this year. So. Overall there is a good and grooming economy for Indian steel industry.

Social Factor

In Social point of view, the responsibility of various steel companies towards society and for the community is required to be analyzed.


Steel Industry is committed to the task of ensuring the safety and safeguarding the health of all its employees under various companies. In the company like Tata Steel, Importance will be given to continuous training for promoting safety consciousness among all employees. Joint committees of executives and employees’ representatives will supervise the Company’s safety measures. Company is accountable for:

Establishing safe and healthy work environment.

Ensuring compliance with mandatory safety and health requirements.

Proper maintenance and orderly house keeping, to control the risk of damage to plant and equipment.

Insisting on safe work procedures being followed by employees, contractors and visitors.


Steel Industry shall continually tried hard to improve the quality of life of the communities industry serve with excellence in all facets of its activities. They are committed to create value for all their stakeholders by continually improving their systems and processes through innovation. The policy has reviewed to align through business direction as well as to comply with all the necessities of the Quality Management Standard.

Alcohol and Drugs

Companies like SAIL & Tata Steel believe that the devotion as well as promise of their employees depends on the quality of life ,they are provivided at work as well as at home. They recognize to arbitrary consumption or use of alcohol moreover drugs is harmful to the well-being of individuals, their families with the whole society . industry acknowledge that the abuse of these psychoactive substance is a chief health in addition to safety hazard. Companies are dedicate to create an alcohol as well as drug-free environment on the work place by

Increasing awareness,:- through the distribution of education information, and training as well as through promoting well life styles among our employees with their families.

Motivating:- provide motivation to employees those have an alcohol/drug problem, to seek assistance, as maintaining confidentiality in relation to such cases.

Environmental Policy

In overall Steel Industry companies are commitment to minimize the adverse impact of its operations on the environment. Towards this end, it shall endeavor to:

Set sound environmental objectives and targets, and integrate a process of review, as essential elements of corporate management.

Install of facitlity, maintaining that and operate facilities to fulfill with applicable Environmental Laws, statutes and other regulations.

Conserve natural resources as well as energy by constantly seeking to reduce consumption and wastage.

Minimize process waste, and promote the recovery and recycling of materials.

Phase out pollution-prone processes and install state-of-the-art technology for pollution prevention, and continual improvement, in environmental performance.

Develop and rehabilitate waste dumps through a forestation and landscaping.

Human Resource

In this tight competitive environment Steel companies recognize that companies people are the chief resource of its competitiveness. Industry is committed for employment opportunities to attract the finest available talent as well as ensuring a mixed workforce. This will pursue companies of steel industry practices designed toward improve the quality of life of its employees, develop their prospective as well as exploit their productivity.

Technological Factor

Technological changes can alter the balance of the five forces and may force changes in the industry structure. For example, with the advent of Midrex and Corex processes of iron making, which use non-coking coal, the requirement for coking coal will drop drastically, as non-coking coal is abundant in India. This will diminish the bargaining power of coal suppliers. With the introduction of continuous strip processing (CSP) the cost of production of cold rolled sheet will reduce significantly, due to elimination of intermediate steps and improvement of yield and price performance ratio. These and many upcoming technologies will shift the balance of power away from the integrated manufacturers and reduce the entry barrier.

The convergence of IT with steel may change the marketing of steel fundamentally. For the steel producers, e-commerce may help reduce direct and indirect sales costs, keep control over the sales channel and enhance reach. In India, two steel majors, Tata steel and SAIL along with kalyani Steel have participated in the formation of a steel portal named Buyer’s bargaining power may increase with access to competitive price information, and thereby exert downward pressure on steel prices.

Indian Steel Industry and the environment

Corporate Sustainability

The ministry of environment and forests classifies steel industry as red category. Several initiatives have been taken by the steel industry in India in the past two decades to improve environmental performance. In the initial stage, the industry thought that environmental control would put additional burden on the available resources and would prove to be a drain on the profit. However, this myth has changed over time. Today the industry has realized that improved environmental performance not only results in clean work area but also improves the business performance. In other words, pollution control pays.

Approach for environment protection

The following activities and measures undertaken by steel industry and explain its approach towards environment protection.

Regional EIA (Environmental Impact Assessment) and carrying capacity

Life cycle analysis

Up gradation of technology

Waste minimization and hazardous waste management

EMS (Environmental Management System)

CSMS (Corporate Sustainability Management System)

Environmental management system

All units of Tata steel are ISO 14001 certified. EMS initiatives are strengthened through a structured process for continual improvement. Following initiatives are in place to ensure compliance to legal requirements and to ISO 14001 standards.

Training of entire workforce/contractors

Focus on shop floor improvement through strict operational control

Instituting a system of waste segregation and value-added eco-friendly disposal

Waste oil and used grease injection in blast furnaces

100% recycling of hazardous like tar sludge, oily sludge, BOD(biochemical oxygen demand) sludge, waste acid from batteries, oil-soaked jute, etc.

Control of spillage during movement of material on road; vacuum cleaners provided for roads and plant cleaning

Pollution Under Control certificate for transport vehicles entering works premises made compulsory

Integration of EMS with QMS and joint departmental councils

Integration with supply chain and contractors

Special Projects implemented by Tata Steel

The following special projects have been implemented by Tata Steel in collaboration with international bodies to go beyond compliance to improve the organization’s business and environmental performance.

Water pricing for steel plants

Market-based instrument for water pollution control in steel plant

Market-based instrument for air pollution control in steel industry

Carbon accounting as per GHG protocol with WRI

Corporate sustainability management system implementation

Triple bottom-line reporting as per guidelines of the global reporting initiatives for corporate sustainability reporting.