Steel Ministry’s latest report highlighted that Indian steel industry is likely to face raw material supply crunch in future. As per the report, concerns like environmental constraints, mining caps, inadequate infrastructure to move iron ore, and the strain on overall reserves could impact the raw material supply to domestic steel players.
Steel Ministry, in its report titled ‘Long-Term Perspectives for the Indian Steel Industry’ has projected that India’s iron ore demand will increase to 346 mt by 2025-26, assuming an 8 per cent growth in GDP. Thus, there is a need to relook at the policy framework to enable the domestic steel industry to capitalise domestic resources and turn it into a competitive advantage. The report further added that merchant iron ore mining industry will go for value addition and consume much of the iron ore themselves, which will complicate the supply line further and hit producers particularly those having no captive mines and depend on small merchant markets.
Steel Industry’s report further noted that mega steel projects need to be set up in states like Jharkhand, Chhattisgarh and Odisha to take the country's production capacity of the metal to 300 million tonnes (MT) by 2025-26. Further, the country will have to work towards greater exploration, raising mining capacities and developing infrastructure, or else brace up for significant exports to achieve this ambitious capacity addition target, which can generate 3.15 lakh of direct employment. Currently, India's crude capacity for steel production is 96 MT per annum.
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