**Summary:**
This document addresses Lok Sabha Unstarred Question No. 4278, posed on August 19, 2025, regarding the purchase of intermediate and work rolls by Bokaro Steel Limited (BSL). The question raises concerns about the accumulation of unused rolls in BSL's HSM/CRM shops, ongoing roll purchases despite existing stockpiles, the associated cost of approximately Rs. 16 crore, and whether inquiries have been made into these purchases. It further asks about government actions to prevent financial wastage and strengthen procurement and stock control at BSL.
The Minister of State in the Ministry of Steel, Shri Bhupathiraju Srinivasa Varma, responded by stating that the steel sector is deregulated, allowing companies like BSL (part of SAIL) to make independent operational decisions. Roll procurement in SAIL is typically managed through the Centralized Procurement Agency (CPA) on a three-year cycle, based on Task Force recommendations that consider annual production plans, consumption patterns, circulation norms, and safety stock requirements. SAIL's internal and government audits regularly review stock positions and consumption patterns, and SAIL takes corrective actions based on audit observations and recommendations.
Key Entities Referenced
Ministry of Steel: A ministry within the Government of India responsible for the steel sector.
Lok Sabha: The lower house of the Parliament of India, where the question was raised.
SHRI DULU MAHATO: Member of Lok Sabha who raised the unstarred question No. 4278.
BSL: Refers to Bokaro Steel Limited.The policy text discusses purchase of Intermediate Rolls and Work Rolls by BSL.
SHRI BHUPATHIRAJU SRINIVASA VARMA: The Minister of State in the Ministry of Steel who provided the answer.
Steel Authority of India Limited SAIL: A major steel producer in India, mentioned in relation to procurement of rolls.
Centralized Procurement Agency CPA: Agency responsible for procurement in Steel Authority of India Limited SAIL.
Task Force: An entity whose recommendations are the basis for procuring rolls at SAIL.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 4278
FOR ANSWER ON 19.08.2025
PURCHASE OF INTERMEDIATE ROLLS AND WORK ROLLS BY BSL
4278. SHRI DULU MAHATO:
Will the Minister of STEEL be pleased to state:
(a) whether the Government is aware that huge quantity of Intermediate Rolls and
Work Rolls have been purchased for HSM & CRM shops in BSL, which are still lying
in stores and not being utilised;
(b) whether new rolls being purchased on a daily basis despite this situation and its
total cost is about Rs. 16 crore;
(c) whether the concerned authorities have enquired into the reasons for this
unnecessary and financially detrimental purchase;
(d) whether the Government is taking immediate steps to check this financial wastage
and ensures purchases as per requirements; and
(e) whether the Government proposes to strengthen the procurement process and
stock control system at BSL to prevent such unnecessary purchases in future?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a)to(e): Steel sector is deregulated, where the government's role is primarily that of
a facilitator. This allows steel companies to make independent decisions regarding
their operations based on market dynamics and commercial considerations.
Rolls are normally procured in Steel Authority of India Limited (SAIL) through
the Centralized Procurement Agency (CPA) on a three-year cycle, pursuant to duly
approved Task Force recommendations based on annual production plan of the mills,
consumption patterns and the requirement for maintaining circulation norms and
safety stock.
Stocks are reviewed by SAIL’s Internal and Government audits wherein stock
position and consumption patterns of rolls are examined and appropriate action is
taken by SAIL based on audit observations and recommendations.
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