India becomes 3rd Largest Crude Steel Producer in World

steel-productionIndia has become third largest producer of crude steel in the world as per data released by  the World Steel Association (WSA) on global crude steel production during January-October 2015.

On Monday,  Minister Of Steel And Mines Shri Narendra Singh Tomar  has presented steel production data for last three years in Lok Sabha. As per the data presented in the lower house, India produced 59.75 in million tonnes during April-November. The production was 88.98 MT in 2014-15 and 81.69 MT,  78.42 MT produced in 2013-14 and 2012-13 respectively.

Steel being a deregulated sector, the investment decisions are taken by the individual companies/investors based on commercial considerations and market dynamics. The current crude steel capacity in the country is 110 Million Tonnes Per Annum (MTPA), which is envisaged to increase to 300 MTPA by the year 2025.  On an average, Rs. 6000 crores is required for setting up a steel plant of one million tonne.

Steel is the core sector of the economy.  Several sectors, which are part of ‘Make in India’ initiative, have strong linkages to steel.  The Government of India has taken the following steps to promote the domestic steel industry and enhance steel production:

(i)        Special Purpose Vehicle (SPV) framework adopted to encourage large capacity green field projects in iron ore rich States of Jharkhand, Odisha, Chhattisgarh and Karnataka.

(ii)       Public sector units have undertaken expansion plans to increase the steel production capacity.  SAIL has undertaken modernization & expansion plan to enhance its crude steel production capacity from 12.8 MTPA to 21.4 MTPA.  RINL has undertaken expansion and modernization of its capacity from           3 MTPA to 7.3 MTPA.  NMDC has undertaken setting up of a new steel plant of 3 MTPA.

(iii)      Notified the Coal Mines (Special Provisions) Amendment Act, 2015 on 30.03.2015 to streamline coal block allocations.

(iv)      Notified the Mines and Minerals (Development and Regulation) Amendment Act, 2015 on 27.03.2015 to streamline grant of mining leases and to improve raw material security.

(v)      Notified Steel and Steel Product (Quality Control) Order dated 12.03.12 (as last amended on 04.12.14) for production and import of quality steel.

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