Indian steel consumption will register a five per decline this year, said B Muthuraman, managing director Tata Steel and president Institute for Steel Development & Growth (INSDAG). Steel consumption during April-August was less by five per cent this year as compared to figures in the last year. Cold rolled steel registered a 11.5 per cent decline over last year.
Commenting on whether the industry would cut production, Muthuraman said, "The industry would manufacture as much as it can sell." Last year, steel consumption was around 26 million tonne.
Muthuraman emphasised on the need to increase specific consumption of steel in any particular item. "This is a more sustainable way of increasing consumption and has been successfully done in many countries."
Pointing out the role of INSDAG in increasing steel consumption he said, INSDAG would measure steel intensity every year and after four years it should go up by 10-15 per cent every year.
"The goal is to achieve 60 million tonne steel consumption in ten years" said Muthuraman.
INSDAG has redesigned the proposed mass rapid transport system in Bangalore after much consultation. "The new design will require steel twice as much was required in the previous one," he said.
INSDAG is also seeking ministry level intervention for major projects like railway bridges, new flyovers and bridges, government and rural housing. Muthuraman said, "The potential of steel has not been fully exploited in this country."
For example, scaffolding and pandals made with bamboo posed fire and other hazards. Muthuraman said there was scope for a proper study to establish the benefits of replacing bamboo with steel and then securing public acceptance of this use of steel.
While the steel to cement ratio is 1:5 in UK, it is 0.31 in India. To facilitate INSDAG's effort of promoting steel, branch offices will be set up in Delhi, Mumbai Chennai or Bangalore.
The institute plans to expand steel demand in all segments of industry, its initial focus is on construction industry covering residential, commercial, infrastructure, industrial and rural segments.
INSDAG has also conducted cost benefit studies including life cycle costing of a few typical buildings and bridges thereby substantiating that steel intensive construction is economically viable proposition in many instances, when time costs and social costs are taken into account.
