Steel majors plan joint R&D

Indian steel majors have agreed to share research & development data to bring down the cost of production of steel and reduce energy consumption.

This would help them compete with the east Asian steel manufacturers who are planning to set up shop here, sources said.

The decision in this regard was taken at a seminar on energy conservation in the steel industry held here recently.

The move comes close on the heels of Nippon Steel of Japan, Posco of South Korea and Bao Steel of China announcing their plans to set up plants in Chhattisgarh and Orissa.

Senior steel sector officials admitted that till now, steel research & development work was company specific.

"Now that the global steel majors have decided to establish their units in India, domestic companies have no choice but to join hands to face competition," a senior official of a private steel major who attended the seminar said.

He said Indian steel majors have already started work on cost reduction.

Tata Steel has begun energy audit for equipment and processes in alliance with Electrical Research and Development Association (ERDA) to bring down energy expenses. Sources said minor modifications in production processes could reduce expenditure on energy by five per cent.

A pilot project in Gujarat had proved this.

"This will help bring the cost of production of steel by domestic manufacturers to almost on a par with companies such as Nippon, Bao or Posco," according to another source.