India to be 2nd Largest Steel Producer by 2013 [Sep 2011]

Addressing the 5th India steel Summit in New Delhi recently, the minister for Steel, Beni Prasad Verma said, “With an installed annual production capacity of 120 million tonnes up from the present 80 million tonnes, India will become the world’s second largest producer of steel by 2013”. He said that currently, India has the fourth largest steel sector in the world, both in terms of capacity and production. “Further the capacity is expected to be over 150 million tonnes by 2020”, he adds.
On the occasion, the Steel Secretary, P K Misra said, “By the end of the current financial year, the steel manufacturing capacity of the country might reach around 90 MT. This is likely to cross 110 MT by next financial year when the brownfield capacity addition projects of SAIL and other private sector projects get commissioned.”
The secretary also called upon the steel industry to come forward for expansion in Research & Development and infrastructure development especially of port and railways. Mr. Misra said that the industry and the technologists to seriously consider and prioritize innovation, research design and manufacturing activities in the steel technology area.
Mr. Misra commented, considering the many challenges, the industry faces at present; Ministry of Steel has decided to formulate a New National Policy and vision Document on Steel sector. This will project a medium term horizon of 10 years and also a long term vision of 25 years. Four eminent personalities in the related fields have offered their services to head the Task Force committees. The various Committees have already started functioning with wide interactions and consultations with the stakeholders and the industry. The report is expected to be ready by December this year.
There are a large number of projects currently in the pipeline including the major ones such as expansion plan of SAIL, RINL, Tata, Essar, JSW and JSPL. A number of greenfield projects are also at different stages of progress including the large foreign investment projects such as Posco and Arcellor-Mittal. The Steel Minister expresses that the brownfield projects are progressing well, whereas some of the greenfield projects are lagging behind their schedules by 2 to 3 years period.
However, land acquisition has become a major challenge. Emphasising the importance of land for industrial development, Mr. Verma said, “Steel investors need thousands of acres of land for setting up their projects. India is a thickly populated country. Most of the people in rural areas are largely dependent upon agricultural land for maintaining their livelihood. Acquisition of land without ensuring adequate compensation, rehabilitation and employment, has already generated massive unrest and protests, in various parts of the country. However, land is also essential for any industrial development activity. To maintain the fine balance, Government is seriously working on a new Land Acquisition and Rehabilitation Bill.”

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Most Popular

To Top