From the present installed capacity of around 100 million tonnes per annum, India aims to treble capacity to 300 mtpa by 2025-26 using greenfield as well as brownfield routes, entailing a whopping investment of USD 200 billion.
Among state-run firms, SAIL has firmed up plans to raise its capacity to 50 mtpa by 2025, RINL hopes to have 20 mtpa by 2020 and the speed at which iron ore producer NMDC is moving, it may have around 15 mtpa capacity through direct holding and joint venture by 2020, said a steel ministry official.
An MoU between SAIL and NMDC may be inked in the current month for fructifying the first SPV with over Rs 24,000 crore investment in Chhattisgarh. The details of the shareholding pattern of the SPV is being worked out, a SAIL official said.
RINL will be the principal investor for Odisha SPV, while NMDC will lead investments in the proposed SPVs in Jharkhand and Karnataka, said one official in RINL.
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Private sector firms too are stepping up capacity plans.
Tata Steel, which is been running a 9.7 mtpa steel plant, is commissioning a new steel unit in Odisha soon with 3 mtpa capacity. It also plans to double the capacity of the plant in the next three years.
Essar Steel would rather concentrate on consolidation than on raising capacity further from 10 mtpa now, a company official said.
"Even as the industry is facing a lot of problems now due to issues such as paucity of raw material, subdued demand and higher imports, they are raising capacity pinning hopes of a huge spurt in the domestic demand," said an industry analyst.
"The consumption of steel is almost set to rise with the government's thrust on infrastructure. Only thing that may derail the plans is imports. India needs to check that," he added.