Akyapak
Akyapak

Do you want to advertise here? Contact us

LMW
LMW

Do you want to advertise here? Contact us

OEM Update
.

India to become second largest steel producer by 2012

August 16, 2010 8:46 am

Over the last few years, the steel industry in India has made tremendous advancement. Supported by the strong demand in the field of infrastructure and other steel-based manufacturing segments, the steel industry has emerged as one of the fastest growing sectors. 
 
According to the Minister for Steel, Virbhadra Singh, “During the last one year, while action on many of the crucial agenda items were completed, those involving long term targets like the modernization and expansion programmes of PSUs like Steel Authority of India (SAIL) and Rashtriya Ispat Nigam Limited (RINL) are also at an advanced stage of progress. India is the third largest producer of crude steel in the world, surpassing developed countries like USA and Russia”.
 
The Minister also said, “Indian Steel Industry contributes to nearly two percent of Gross Domestic Production (GDP) and employs over 5 lakh people.  The Steel sector continues to be one of the major contributors to national exchequer and in 2009-10 up to end of third quarter (April-December’ 2009) the net profit earned by all the profit making PSUs taken together was to the tune of Rs. 8008.57 crore”.
 
In 2009-10, the Steel Sector was able to make a recovery after the sluggish growth on account of global downturn and adverse market condition of 2008-09.  The resurgence in automotive appliances, capital goods and construction sectors has directly contributed to this positive performance. According to PIB, during the year, the industry achieved a total capacity utilization of 88.9% showing increase in production of crude steel (by 10.7%) and finished steel (by 4.4%) as well as consumption (by 7.9%). The year 2010-11 has begun on a note of optimism for the steel sector and especially for the major PSUs under the Ministry’s administrative control like SAIL, RINL and NMDC Ltd.
 
Production
The National Steel Policy 2005 had projected an annual steel consumption growth of 7% based on a GDP growth rate of 7-7.5% and production of 110 million tonnes of crude steel by 2019-20. The ministry of steel projected that the growth trends are likely to be exceeded and it is envisaged that in the next five years, demand will grow at higher annual average rate of over 10% as compared to around 7% growth achieved between 1991-92 and 2005-06.
 
According to the Annual Report 2009-10 on steel industry published by the Ministry of Steel, the production for sale of total finished steel at (alloy + non-alloy) was at 38.961 million tonnes during April-November, 2009 as against 38.024 million tonnes in corresponding period of 2007-08, a growth of 2.5%. India also maintained its lead position as the world’s largest producer of direct reduced iron (DRI) or sponge iron. Sponge iron production for sale was 20.8 million tonnes in 2008-09 which was higher by 2.1% over 2007-08.
 
The Minister for Steel said, “India is expected to become the second largest steel producing nation by 2012 with a targeted production capacity of 120 million tones”.
 
Consumption
According to a latest research report “Indian Steel Industry Outlook to 2012”, published by RNCOS, the Indian steel industry has made a rapid progress on strong fundamentals over the past few years. Manufacturing, housing and infrastructure are some of the important fields that are closely associated with steel consumption in India. In the recently announced budget, the Indian government has funded many infrastructure development and modernization of urban and rural areas projects and most of these projects are expected to be completed by 2012-13, which will enable steel consumption to grow at around 8.3% by FY 2013.
 
The report reveals that the Indian steel industry is still struggling to tap the huge market potential. In 2008-09, per capita steel consumption in urban areas was estimated at 145 Kg, whereas in rural areas the figure stood at only 3 Kg. However, in the 11th Five-Year Plan, a great emphasis has been given to the infrastructure developments in the rural areas, but still majority of developments will take place in Tier-1, 2 and 3 cities of the country, which will ultimately uplift the per capita steel consumption in urban areas.
 
The year end review by ministry reveals that the consumption of total finished steel (alloy+ non-alloy) was at 34.304 million tonnes during April-November, 2009 as against 33.995 million tonnes in corresponding period of 2007-08, a growth of 6.8%.
 
Investment
During the year 2009-10, 222 Memorandum of Understanding (MoUs) have been signed by the investors with various State Governments for setting up additional 276 million tonnes of steel capacity in the country. Major investment plans are in the States of Orissa, Jharkhand, Karnataka, Chhattisgarh and West Bengal.
 

Advertising

OEM Android App

Your future advertising space? Our media data

Cookie Consent

We use cookies to personalize your experience. By continuing to visit this website you agree to our Terms & Conditions, Privacy Policy and Cookie Policy.

Tags:
TruCut Precision Tools Pvt Ltd
TruCut Precision Tools Pvt Ltd

Do you want to advertise here? Contact us

Paid Webinar
Paid Webinar

Do you want to advertise here? Contact us

OEM Update QR Code
OEM Update QR Code

Events

amtex
amtex
Fastener Fair India
Fastener Fair India
Himtex 2024
Himtex 2024
Oil & Gas Digital Transformation Africa 2024
Oil & Gas Digital Transformation Africa 2024
Mototech24 Pune
Mototech24 Pune
Pharma India Expo
Pharma India Expo
World of Photonics India
World of Photonics India
IFFE Expo
IFFE Expo
India Essen Welding and Cutting Expo
India Essen Welding and Cutting Expo
Logimat India
Logimat India

eMagazine June 2024

eMagazine June 2024
eMagazine June 2024

Do you want to advertise here? Contact us

Our Sponsors

Bluestar
Bluestar
ELGI-banner
ELGI-banner
DIRAK
DIRAK
B&R Automation
BR Automation
Pragati Gears
Pragati Gears
Pilz India
Pilz India
Carl Zeiss India
Carl Zeiss India
STMCNC
STMPC
Nord
Nord
Fuji Electric India
Fuji Electric India
Maco-c
Maco-c
Andreas
Andreas
TEAL
TEAL
Vulcan Rubber
Vulcan Rubber
Fronius
Fronius
SCHMALZ
SCHMALZ
Sigma-Weild
Sigma-Weild
Inovance Technology
Inovance Technology
Mallcom
Mallcom
Caliber Valves
Caliber Valves
Delta Electric
Delta Electric
Jayashree Electrodevices
Jayashree Electrodevices
Kumbhojkar plastic moulders
Kumbhojkar plastic moulders
Libratherm instruments
Libratherm instruments
MACHbow Enterprise
MACHbow Enterprise
Igus India Pvt Ltd
Igus India Pvt Ltd
Rtex electronics
Rtex electronics
Vega India Level Ltd
Vega India Level Ltd
Sunlub Technologies
Sunlub Technologies
Thakoor Maschinen
Thakoor Maschinen
Timken India
Timken India
UNP Polyvalves India Pvt Ltd
UNP Polyvalves India Pvt Ltd
Wago Pvt Ltd
Wago Pvt Ltd
Dosatron
Dosatron
Super Slides
Super Slides
Mecc alte
Mecc alte
IMTMA- IMTEX 24
IMTMA- IMTEX 24
Ziehl Abegg
Ziehl Abegg
ACE Micromatic Group
ACE Micromatic Group
Fuel Instruments  Engineers
Fuel Instruments  Engineers
Hosabettu Heavy Machinery LLP
Hosabettu Heavy Machinery LLP
BLASTLINE INDIA
BLASTLINE INDIA
Chicago Pneumatic Tools
Chicago Pneumatic Tools
MMC Hardmetal Pvt Ltd
MMC Hardmetal Pvt Ltd
Yaskawa India
Yaskawa India
Mennekes
Mennekes
TruCut
TruCut
MARPOSS
MARPOSS
kta
kta
Jungheinrich
Jungheinrich