India's Steel Capacity From Eastern Region Set to Rise

Eastern region is set to push India's steel capacity with an investment of nearly Rs 9 lakh crore for creating an additional 160 million tonnes per annum (mtpa) capacity in the next 10-15 years.

The Steel Ministry estimates that 16 new plants are set to come up in mineral-rich eastern states adding 42 mtpa new capacity in coming five years, another 45 mtpa in next five years and further 73 mtpa in about 15 years from now.

In a presentation to Prime Minister Narendra Modi, Steel Secretary G Mohan Kumar has said six new mills could come up in Odisha, five in Jharkhand, four in Chhattisgarh and one in West Bengal with a cumulative investment of Rs 8.92 lakh crore investment till 2030.

India has around 100 mtpa steel production capacity now, up from 75 mtpa four years ago. A majority of the country's steel plants are located in the eastern part mainly because of its rich raw material base and locational advantages.

Exuding confidence that India has potential to become a global leader both in production and consumption of steel, Kumar said a total of Rs 12 lakh crore investment, including Rs 8.92 lakh crore in the east, could come up in the sector for trebling capacity to 300 MT by 2030.

India is already world's fourth largest steel maker and it could have become the third largest steel maker in 2013 but for slowdown of the economy, low growth in consumption and tepid growth in production.

India's position in world's steel production has remained static for the last four years with an output of 81.2 MT in 2013, 77.3 MT 2012, 73.6 MT in 2011 and 69 MT in 2010. China, Japan and the US are ahead of India in steel production.

Sensing that funding could be a problem for the expansion of the sector, Kumar, in his presentation to Modi, also sought infrastructure status for steel and pitched for indigenisation of design, manufacturing and erection of plants.

He also listed out the concerns arising out of the recent developments that are impeding growth such as decline in iron ore production, low priority in coal and gas allocation, delay in statutory clearances and infrastructure bottlenecks.

Describing steel as an "engine of growth", he said the sector intrinsically needs long-term perspective such as development of the eastern region, infrastructure development, decentralisation, single-window clearance and skill development.