§ 115. Mr. Higginsasked the Minister for Overseas Development how much aid has been given by Her Majesty's Government to the Durgapur steelworks in India; and it he will make a statement about future aid for these works.
§ Mr. BottomleyIn the period from 1958 to the end of March this year, aid loans totalling £68 million were made available by the British Government to the Government of India for Stages 1 and 2 of the Durgapur Steelworks, of which about £60 million had been spent.
In addition, the British Government has, from 1957 onwards, provided technical assistance for the steelworks by training about 400 Indian engineers in the United Kingdom and making available the services of British staff to assist in managing and operating the plant and in design and constructional work. The cost to British public funds of this technical assistance has to date amounted to about £800,000.
Since 1964 discussions have been taking place between the British Government and the Government of India, and between a consortium of British steel plant manufacturers and the Indian authorities, on the subject of a further expansion of the Durgapur Steelworks to increase its capacity from 1.6 million to 3.4 million tonnes.
The decision of the Government of India on this proposed further expansion was announced on the 11th July by the Indian Minister of Steel, Mines and Metals. The Government of India has decided, for the present, to postpone the expansion. The Government of India have given as their reasons for taking this decision the slower growth than earlier anticipated in the demand for steel, and, in particular, for flat products; the estimated cost of the project and its foreign exchange component being in excess of the available resources; and the prior need of attaining normal production at 112W the existing 1 million tones plant and the expansion of 1.6 million tones now nearing completion.