Steel fabrication may get Rs 5000 cr funding

The steel fabrication sector is likely to see an investment of Rs 5,000 crore in the next one year as global steel giants take keen interest in the country's infrastructure development.

Companies such as Tata BlueScope Steel and Anglo-Dutch giant Corus, which was acquired by Tata Steel, have already firmed up plans to invest Rs 1,200 crore and Rs 1,000 crore respectively in India. Indo Emirates Building Solutions, the UAE-based company, is learnt to have acquired 65 acres near Pune to set up a full-fledged fabrication unit.

An executive of the Emirates-based company recently had discussions with the Kolkata-based Institute for Steel Development and Growth (INSDAG), a joint venture between the ministry of steel and steel producers, on a possible alliance for steel fabrication in the country.

"The promoter of Indo Emirates Building Solutions is also in touch with us for future strategies," said R K P Singh of INSDAG. The Emirates-based company is planning to develop a 100-storey building in Dubai.

Fabricators from Russia, China and Japan have also evinced interest to set up projects in India, looking at the country's future infrastructure growth plans. India's fabrication sector is largely made up of small- and mid-sized companies, which are unable to handle big projects. The 10 major existing players, including Kolkata-based BBJ and L&T, are full with orders.

INSDAG is promoting 40- to 50-storey buildings in India for commercial and residential use. The country's first 100-storey building is under construction in Hyderabad, while the Bombay Dyeing Group is considering erecting the country's first 40-storey building in Mumbai. In Kolkata too, a UK-based fabricator is developing a 40-storey building.

These buildings would be a combination of steel and concrete, while there are plans to have 100 per cent steel buildings in several parts of the country, especially in low-rise structures such as petrol pumps.

"Indian fabricators are going to play a very important role in the overall growth of infrastructure, where economic growth and steel consumption complement each other," said P K Bishnoi of CMC Rashtriya Ispat Nigam, at a meeting of the Steel Chambers, an association of steel fabricators based in Mumbai.