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India aims record steel production next year
India is all set to create new record in steel production next year in order to meet robust domestic demand and also to boost its exports.
The steel sector in the country has been witnessing extraordinary growth, making India the fifth largest crude steel producer in the world as against 8th position held three years back.
Production of finished carbon has increased from 35.41 million tonnes in 2002-03 to 49.58 million tonnes in 2006-07. During the first seven months of the current year from April to October 07, production of finished carbon is estimated to be about 29.37 million tonnes and is expected to be 55.5 million tonnes in FY 08.
While exports have remained fairly stable in 2002-03 until last year at around 4.5 million tonnes, imports have increased from 1.51 million tonnes in 2002-03 to 4.10 million tonnes maintaining a rising trend this year, largely to fill the demand supply gap in the domestic market.
The demand for steel is expected to remain buoyant, above 10 per cent over the next five years, and in the most likely scenario the steel production capacity in the country is expected to touch 124 million tonnes by 2012.
While the brown field expansion plan over the next five years is expected to add 40.5 million tonnes capacity to the existing capacity of 56.84 million tonnes, the most likely scenario for addition to capacity by setting up of green field projects is expected to be 28.72 million tonnes taking the total capacity to 124.06 million tonnes.
Furthermore, taking into consideration the intentions expressed by various steel investors including multinationals, domestic steel majors and FDIs, the likely capacity achievable by 2019-20 will be around 275 million tonnes.
The Public Sector Undertakings, Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL), are in the midst of ambitious expansion plans. The expansion plan would increase the capacity of SAIL from 14.6 million tonnes of hot metal to 26 million tonnes by 2010 at an estimated cost of around Rs. 53,000 crore.
SAIL is also planning to expand its capacity further to 60 million tonnes per annum by 2020. In case of RINL, the expansion would increase its capacity from the present level of 3 million tonnes of hot metal to 6.3 million tonnes by 2009-10 at an estimated cost of around Rs.9,000 crore. RINL also plans to enhance capacity to 16 million tonnes per annum by 2020.
An MOU was signed between SAIL, RINL and NMDC this year for setting up a 4 million tonnes steel plant in Chhattisgarh. MECON has been appointed as consultant to prepare the site selection and economic feasibility report by April 2008.
India is all set to create new record in steel production next year in order to meet robust domestic demand and also to boost its exports.
The steel sector in the country has been witnessing extraordinary growth, making India the fifth largest crude steel producer in the world as against 8th position held three years back.
Production of finished carbon has increased from 35.41 million tonnes in 2002-03 to 49.58 million tonnes in 2006-07. During the first seven months of the current year from April to October 07, production of finished carbon is estimated to be about 29.37 million tonnes and is expected to be 55.5 million tonnes in FY 08.
While exports have remained fairly stable in 2002-03 until last year at around 4.5 million tonnes, imports have increased from 1.51 million tonnes in 2002-03 to 4.10 million tonnes maintaining a rising trend this year, largely to fill the demand supply gap in the domestic market.
The demand for steel is expected to remain buoyant, above 10 per cent over the next five years, and in the most likely scenario the steel production capacity in the country is expected to touch 124 million tonnes by 2012.
While the brown field expansion plan over the next five years is expected to add 40.5 million tonnes capacity to the existing capacity of 56.84 million tonnes, the most likely scenario for addition to capacity by setting up of green field projects is expected to be 28.72 million tonnes taking the total capacity to 124.06 million tonnes.
Furthermore, taking into consideration the intentions expressed by various steel investors including multinationals, domestic steel majors and FDIs, the likely capacity achievable by 2019-20 will be around 275 million tonnes.
The Public Sector Undertakings, Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL), are in the midst of ambitious expansion plans. The expansion plan would increase the capacity of SAIL from 14.6 million tonnes of hot metal to 26 million tonnes by 2010 at an estimated cost of around Rs. 53,000 crore.
SAIL is also planning to expand its capacity further to 60 million tonnes per annum by 2020. In case of RINL, the expansion would increase its capacity from the present level of 3 million tonnes of hot metal to 6.3 million tonnes by 2009-10 at an estimated cost of around Rs.9,000 crore. RINL also plans to enhance capacity to 16 million tonnes per annum by 2020.
An MOU was signed between SAIL, RINL and NMDC this year for setting up a 4 million tonnes steel plant in Chhattisgarh. MECON has been appointed as consultant to prepare the site selection and economic feasibility report by April 2008.