Industry greets new steel policy

Domestic steel majors and industry chambers today welcomed the new steel policy cleared by the Cabinet. The policy envisages the country's annual steel production to reach 100 million tonnes by 2020 from 30 million tonnes now.

A Tata Steel executive, welcoming the step, said the policy took cognisance of improving the domestic demand, which was vital for the growth of the steel industry.

"Our per capita consumption of steel is very low compared with other developing countries, and the policy being implemented by the government is a step in that direction," said the executive.

The country's second largest private sector player, Essar Steel, too, expressed optimism at the development. A company executive termed it as a long-awaited decision and that it would enhance the country's steel manufacturing capability.

An executive with Jindal Stainless, the country's largest stainless steel player, sounded a word of caution and said the "volatile issues of captive mines leases for steel plants" also needed to be resolved. FICCI said the policy paved the way for India emerging as a leading supplier of steel to the world.