Steel Ministry has stated that country’s eastern region will witness large steel production capacity expansion in future with an investment of nearly Rs 9 lakh crore which will push India's steel capacity by an additional 160 million tonnes per annum (mtpa) capacity in the next 10-15 years.
As per the steel ministry estimates, 16 new steel 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. State wise, 6 new plants are likely to come up in Odisha, 5 in Jharkhand, 4 in Chhattisgarh and one in West Bengal with a cumulative investment of Rs 8.92 lakh crore investments till 2030. A majority of the steel plants are located in the country’s eastern part mainly because of its rich raw material base and locational advantages.
India is world fourth largest steel maker behind China, Japan and the US with 100 mtpa steel production capacity now, up from 75 mtpa four years ago. The ministry has excluded confidence that India has potential to become a global leader both in production and consumption of steel. With Rs 12 lakh crore investment, including Rs 8.92 lakh crore in the eastern region could enhance the country’s total steel production to 300 MT by 2030. Describing steel as an engine of growth, steel ministry has also pitched for infrastructure status for steel sector and sought for indigenization of design, manufacturing and erection of plants.
Ministry also highlighted the key concerns 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. Over the past four years, India’s steel production remained static at 81.2 MT in 2013, 77.3 MT 2012, 73.6 MT in 2011 and 69 MT in 2010 owing to the prevailing economic slowdown impacting domestic consumption.