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ARTICLE: Indian Steel - The Story of the Growth
Tuesday, 31 January 2012 02:41

Indian Steel - The Story of the Growth

 

Steel in India is an industry that has spurred national development since the very infancy of theIndian Republic. From supporting the infrastructure development requirements of the nation to aiding growth by catalyzing the economy, its role has been much more than that of a morbid alloy.

Despite all the multi pronged development that has been possible because of Steel, its uses have not been sufficiently recognized. Whatever growth the sector has influenced has ridden on the back of major infrastructure projects and schemes. The steel demand in the country is expected to grow at around 10% Compound Annual Growth Rate (CAGR) over the next ten years at the same time the growth in steel production capacity in India is also slated to increase at an identical rate.

Projections suggest that steel production capacity in India would double to 120 million tonnes by the year 2020 from the present capacity of 78 million tones. This would further increase if the demand for steel in rural India increases. For this to happen, there is a requirement of large scale capacity additions both by private and public sector undertakings. Due to the timely and strategic efforts of the Steel Ministry, the stone has been set rolling.

The focus now is on capacity growth in steel production in the country, so that the nation becomes self reliant to meet domestic steel demand. Apart from major Private companies that are on the expansion mode, PSUs like the Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) have also taken up expansion projects to meet the future steel demand.

 

SAIL one of the biggest PSE under the Ministry of Steel plans to ramp up its Hot Metal capacity to 23.4 Mt by 2012-13, improving over its current production capacity of 13.82 Mt. SAIL’s massive modernization and expansion plan at an expenditure of about Rs. 72,000 crore is under advanced stage of implementation. This would increase the saleable steel capacity from the current 11.07 Mtpa to 20.23 Mtpa. A 83% increase in capacity. Till December last year, orders worth of around Rs. 56,000 crore have already been placed and an expenditure of around Rs. 32,000 crore has been made. The new 0.18 Mtpa stainless steel making facility in Salem Steel Plant has already commenced operations.

The following major facilities are expected in the steel sector:

  • New 7 m tall coke oven batteries with Coke Dry Quenching at Rourkela Steel Plant (RSP) and at IISCO Steel Plant (ISP).
  • Sinter Plants at RSP and ISP.
  • New 4060 m3 Blast Furnace  at RSP.
  • 0.5 Mtpa capacity Wire Rod Mill at ISP.
  • 1.2 Mtpa Cold Rolling Mill at Bokaro Steel plant.

 

With the completion of expansion projects the capacity at the IISCO Steel Plant would increase to 2.7mt. The modernization is expected to be completed in the year 2012-2013 at SAIL’s Bokaro, Bhilai, Rourkela and Durgapur Steel Plant. The projected capacity increase is:

 

Plant

Present Capacity (mt)

Capacity Post -        Expansion (mt)

Bokaro

4.59

5.77

Bhilai

4.08

7.50

Rourkela

2.00

4.50

Durgapur

2.09

2.45