Steel sector trends
became the 4th largest producer of crude steel in the world in
2010 as against the 8th position in 2003 and is expected to
become the 2nd largest producer of crude steel in the world by
also maintained its lead position as the world's largest producer of direct
reduced iron (DRI) or sponge iron.
MoUs have been signed with various states for planned capacity of around 276
million tonnes by 2019-20.
investment plans are in the states of Orissa, Jharkhand, Karnataka,
Chhattisgarh and West Bengal.
steel sector contributes to nearly 2% of the GDP and employs over 5 lakh
per capita steel consumption during the last six years has risen from 38 kg in
2005-06 to 55 kg in 2010-11.
Production, consumption and demand of Steel
for crude steel production expanded from 51.17 million tonnes per annum (mtpa)
in 2005-06 to 78 mtpa in 2010-11.
steel production grew at 8% annually (CAGR) from 46.46 million tonnes in
2005-06 to 69.57 million tonnes in 2010-11.
for sale of finished steel stood at 66.01 million tonnes during 2010-11 as
against 46.57 million tonnes in 2005-06, an average annual (CAGR) growth of 7%.
of finished steel has grown at a CAGR of 9.6 % during the last six years.
of finished steel during 2010-11 stood at 3.36 million tonnes while imports
during 2010-11 stood at 6.54 million tonnes.
the next five years, demand of steel is likely to grow at a higher annual
average growth of over 11-12% as compared to the average annual growth of 8%
achieved between 1991-92 and 2010-11.
Major initiatives and achievements
Authority of India Ltd. (SAIL) became a Maharatna company and Rashtriya Ispat
Nigam Ltd. (RINL) became a Navratna company during 2010.
Expansion Plans of SAIL, RINL & NMDC Ltd.
Steel PSUs are in the midst of ambitious expansion plans. The major thrust of
the modernization and expansion plans is to adopt the best modern technology,
which in addition to being cost effective should also be energy efficient and
plans to increase the production of iron ore from the present level of around
24 million tonnes to 40 million tonnes by 2014-15.
is setting up a 3 million tonne per annum (mtpa) capacity Integrated Steel
Plant at Nagarnar, Chhattisgarh with an estimated cost of Rs. 15,525 crore.
is also setting up a 1.2 million tonne per annum (mtpa) capacity pellet plant
at Donimalai, Karanataka.
ventures of the Steel PSUs
Elektrosmelt Ltd (MEL), the 99.12% subsidiary of Steel Authority of India
Limited (SAIL), has been merged with SAIL with effect from 01.04.2010.
Refractory Company Limited'-a subsidiary company of SAIL for transfer of the
Refractory unit of BSCL incorporated in August, 2011
* SAIL-SCL Limited-Joint ventures (JV) with Govt. of Kerala to revive existing
facilities at Steel Complex, Calicut has been effective from
30.12.2010. SAIL has formally taken over the management of the JV
Company. Govt. of Kerala has been requested to expedite approval of
rolling mill by JV Board.
with Kobe Steel for ITmk3 Technology envisages installation of a 0.5 MTPA Iron
Nugget plant at ASP, Durgapur. This unit will produce premium grade Iron
Nuggets from iron ore fines and non-coking coal. Proposal for formation of a JV
Company with M/s Kobe Steel (50:50 equity participation) has been put up for
consideration of SAIL Board on 29.11. 2011.
* Hajigak Iron Ore Deposits, Afghanistan
led Consortium which submitted bid in SeptemberÃ¢â‚¬â„¢2011 has been alloted mining
blocks B, C & D of the Hajigak Iron ore deposits (reserve of 1770 MT). The
total investment estimated at US $ 10. 8 Billion in phases (includes
development of mine, installation of 6.12 MTPA Steel plant in two
phases, 800 MW Power plant, Rail & Road infrastructure and CSR
Joint Venture Company(JVC) called “International Coal Ventures Ltd” comprising
of SAIL, RINL, CIL, NTPC and NMDC has been set up for acquisition of coal mines
in overseas territories, with an equity base of Rs.3000 crore to be leveraged
with around Rs. 7000 crore of debt. The ICVL will function like a Navratna
company with powers to clear proposals involving investment of upto Rs.1500
crore. The company has already initiated efforts to acquire coal properties
abroad with specific countries like Australia, Mozambique, Canada, Indonesia
Source: Press Information Bureau, Ministry of Steel