TRENDS AND DEVELOPMENTS IN STEEL SECTOR
- India is currently the 3rd largest producer of crude steel in the world as against its 8th position in 2003.
- India continues to maintain its lead position as the world’s largest producer of Direct Reduced Iron (DRI) or Sponge Iron.
- The steel sector contributes nearly 2% of the country’s GDP and employs over 6 lakh people.
- The per capita consumption of total finished steel in the country has risen from 54.9 kg in 2010-11 to 60.8 kg in 2014-15.
Production and Consumption of Steel
- Capacity for crude steel production expanded from 80.36 million tonnes per annum (mtpa) in 2010-11 to 109.85 mtpa in 2014-15.
- Crude steel production grew at 6.2% annually (CAGR) from 70.67 mtpa in 2010-11 to 88.98 mtpa in 2014-15.
- Production for sale of total finished steel (alloy + non-alloy) stood at 92.16 million tonnes during 2014-15, as against 68.62 million tonnes in 2010-11, an average annual (CAGR) growth of 8.7%.
- Real consumption of total finished steel (alloy + non-alloy) has grown at a CAGR of 5.3% during the last five years.
- Domestic real consumption of total finished steel (alloy + non-alloy) was at 76.99 million tonnes in 2014-15 and increased by 3.9% on a year-on-year basis (i.e. over 2013-14).
- Export of total finished steel (alloy + non-alloy) during 2014-15 stood at 5.59 million tonnes while import of total finished steel (alloy + non-alloy) during the same year stood at 9.32 million tonnes.
- India was a net importer of total finished steel in 2014-15.
CPSEs under the Ministry of Steel have undertaken modernization and expansion plan to enhance their crude steel capacity. Hon’ble Prime Minister dedicated to the nation the following:-
- Expansion of Rourkela Steel Plant of SAIL on 01st April, 2015. The expansion of Rourkela Steel plant has resulted in addition of about 2.5 million tonnes of crude steel capacity.
- Expansion of SAIL’s IISCO Steel Plant at Burnpur on 10th May, 2015. The expansion of ISP completed at a cost of Rs.16,000 crore has resulted in three fold increase in the hot metal production capacity from 0.85 million tonnes per annum to 2.9 million tonnes per annum.
- Expansion of RINL from 3.0 mtpa to 6.3 mtpa capacity has been completed.
- NMDC has completed the construction activities of 1.2 mtpa pellet plant in Donimalai, Karnataka. Integrated load trials have been started.
- Steel Research and Technology Mission of India (SRTMI) being established to spearhead R&D activities of national importance in collaboration with steel industry with an initial corpus of Rs.200 crore. Memorandum of Agreement (MoA) has been signed on 06th April, 2015.
In order to achieve the growth target of production of 300 Million Tonnes of Steel by 2025, a concept of Special Purpose Vehicle (SPV) has been proposed with respective State Governments of Chhattisgarh, Odisha, Jharkhand and Karnataka. The following MoUs were signed in the presence of Hon’ble Prime Minister, Hon’ble Minister for Steel & Mines and the Chief Minister, Chhattisgarh on 09th May,2015:
- MoU between Govt. of Chhattisgarh, NMDC, IRCON and SAIL for 140km rail line between Rowghat and Jagdalpur. Estimated project cost: Rs. 2000 crore.
- MoU between Ministry of Steel, Govt. of Chhattisgarh, SAIL and NMDC for 3 million ton Steel Plant with an investment of approximately Rs. 18,000 crore.
- MoU between Govt. of Chhattisgarh and NMDC for Slurry Pipeline and 2MTPA Pellet Plant at Nagarnar in Bastar District with an investment of Rs. 4000 crore.
- MoU between Govt. of Chhattisgarh and SAIL for setting up 1MTPA Pellet Plant at Dalli-Rajhara, Balod District with an investment of Rs. 826 crore.
- At RINL, a trend setting project to generate power with green technology in collaboration with NEDO, Japan was successfully commissioned. This is the first of its kind in the country.
- Ministry of Steel has entered into a strategic partnership through a MoU with Ministry of Skill Development and Entrepreneurship for facilitating skill development through CPSEs of the Ministry. SAIL, RINL & MOIL each signed MoUs with National Skill Development Corporation for skill development.
Source: Ministry of Steel