A STUDY ON Project Finance WITH REFERENCE TO RASHTRIYA ISPAT NIGAM LTD, VISAKHAPTNAM

2.57 million tonnes. The growth in the steel sector in the earlier decades since Independence was mainly in the public sector units set up during this period. The situation has changed dramatically in the decade 1990-2000 with most of the growth originating in the private sector. The share of public sector and private sector in the production of steel during 1990-91 was 46% and 54% respectively, while during 2000-01 the same was 32% and 68% respectively. This change was brought about by deregulation and decontrol of the Indian iron and steel sector in 1991. A number of policy measures have been taken since 1991 for the growth and development of the Indian iron & steel sector. Some of the important steps are Removal of iron & steel industry from the list of industries reserved for the public sector and also exemption from the provisions of compulsory licensing under the Industries (Development & Regulation) Act, 1951, deregulation of price and distribution of iron & steel, inclusion of iron and steel industry in the list of high priority industries for automatic approval for foreign equity investments up to 74%, lowering of import duty on capital goods and raw materials etc.

THE INDIAN STEEL SECTOR AFTER LIBERALISATION The Indian steel sector was the first core sector to be completely freed from the licensing regime and the pricing and distribution controls. This was done primarily because of the inherent strengths and capabilities demonstrated by the Indian iron and steel industry. During 1996-97, finished steel production shot up to 13