India, the world’s fourth largest steel producing country, will witness its steel production capacity rise to almost 200 million tonnes by 2020. At present, China is the global leader in steel production, followed by USA, Russia and India.
“By 2020, India would overtake USA and Russia in steel production. However, China would still remain the largest steel producer,” union steel minister Beni Prasad Verma said at a conference call here.
By 2012-13, the country’s installed capacity of steel is likely to be 110-120 million tonnes.
On the impact of hardening coking coal prices on steel production, he said the country was importing coking coal from USA, Australia and New Zealand, and while its prices were ruling high, there is no shortage of coking coal that could affect production.
The Centre had formed four sectoral sub-committees to look into issues facing the steel sector, keeping in mind future requirements and challenges, before the central government formulates and implements ‘new steel policy’.
“The committees would look into issues of steel inputs, logistics, environment, research and development etc. Their report is likely to be submitted before the end of this financial year to allow the new steel policy to be implemented,” Steel Authority of India Limited (SAIL) chairman C S Verma told Business Standard on the sidelines.
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He said generally four tonnes of inputs were required to produce one tonne of steel, including two tonnes of iron ore, one tonne of coking oil and other industrial inputs.
“Since, India is targeting 180-200 million tonnes capacity by 2020, the government wants a foresight into the quantum of input required, where to source it and the massive logistics requirement to move it to the plants,” he added.
Meanwhile, SAIL is reviving Malavika Steels at Jagdishpur in Uttar Pradesh. The TMT bar mill is expected to start production by January 2012 with 150,000-tonne capacity. Corrugation lines are already installed to produce 13,000 tonnes of corrugated sheets. Crash barrier line to produce 10,000 tonnes per year is expected to be installed by January 2012.