68MT steel capacity to be added in 14 years

The Indian steel industry is set to add 68 million tonne to the existing capacity of close to 32 million tonne per annum over the next 14 years.

J P Singh, joint secretary, ministry of steel & chairman, joint plant committee said: "The Indian steel industry is looking at an installed capacity of 100 million tonne per annum by 2018."

The addition in capacity would primarily to the surging domestic demand along with a substantial rise in exports, Singh said. He was speaking at the 4th Asian Steel Conference.

"A capacity of 100 million tonne per annum is actually a conservative figure since it would mean a per capita consumption of steel of only 60 kg, which is still lower than our per capita consumption target of 100 kg by 2018," Singh said.

Currently the per capita consumption of steel in India is between 26-28 kg, while per capita consumption in Malaysia is at 345 kg, Thailand at 149 kg and Vietnam at 49 kg.

Raman Madhok, joint managing director & CEO, Jindal Iron & Steel Company, said: "Absorption of an additional capacity of 65 million tonne will require a tremendous boom in the domestic demand, since we cannot have only export-oriented growth."

The industry could experience an addition of around 6-8 million tonne of fresh capacity by the year 2010, Madhok said.

Singh further added, "China is looking at a consumption figure of over 300 million tonne by 2010, which means that the surge in global demand for the metal will continue. However, the magic figure of a capacity of 100 million tonne will be primarily driven by the domestic consumer."

The acceleration in demand for auto ancilliaries and the impending infrastructure boom in the country will provide ample scope for absorption of such a capacity, Singh added.